The broker will allow traders to purchase fractions of popular stocks, ETFs, cryptocurrencies, and Themes Trading products.
It will convert share fractions into actual shares when the cumulative fractions reach one full unit.
Swissquote has become the latest broker to enable fractional share trading for its customers, highlighting that trading full shares "limited clients to strategies constrained by share prices rather than their available cash."
Lowering Trading Entry Barrier with Fractional Shares
In the announcement today (Tuesday), the Swiss broker also launched a new "Saving Plan" order type and reduced trading commissions. It is now charging CHF 3 per trade for shares.
Fractional shares allow traders to purchase only a part of a whole share with whatever capital they have. This significantly lowers the entry barrier to trade. For example, Apple shares are trading at $236.5 as of press time. However, if a trader only has $100 available, they can buy $100 worth of Apple shares and will own only a fraction of the whole Apple share, thus enabling fractional share trading.
Supporting a Diverse Range of Asset Classes
Swissquote explained that traders on its platform can purchase fractions of the most popular stocks, exchange-traded funds (ETFs), cryptocurrencies, and Themes Trading products. The broker highlighted that it will convert share fractions into actual shares when the cumulative fractions reach one full unit, thus granting clients complete ownership rights of their investments.
Under the "Saving Plan," the broker allows clients to set up recurring investments, which they can further adjust based on the available funds.
"With the introduction of fractional trading and the new 'Saving Plan,' we are offering our clients unprecedented flexibility and control over their investments," said Jan De Schepper, Chief Sales and Marketing Officer at Swissquote. "This solution not only meets market demand but sets a new standard in the industry."
Although fractional share trading has become very popular, it has also attracted the attention of regulators. The Cyprus Securities and Exchange Commission recently clarified when that such investments qualify as direct share ownership under MiFID II. From next year, the Financial Industry Regulatory Authority (FINRA) will also mandate the reporting of fractional shares as a whole number.
Swissquote has become the latest broker to enable fractional share trading for its customers, highlighting that trading full shares "limited clients to strategies constrained by share prices rather than their available cash."
Lowering Trading Entry Barrier with Fractional Shares
In the announcement today (Tuesday), the Swiss broker also launched a new "Saving Plan" order type and reduced trading commissions. It is now charging CHF 3 per trade for shares.
Fractional shares allow traders to purchase only a part of a whole share with whatever capital they have. This significantly lowers the entry barrier to trade. For example, Apple shares are trading at $236.5 as of press time. However, if a trader only has $100 available, they can buy $100 worth of Apple shares and will own only a fraction of the whole Apple share, thus enabling fractional share trading.
Supporting a Diverse Range of Asset Classes
Swissquote explained that traders on its platform can purchase fractions of the most popular stocks, exchange-traded funds (ETFs), cryptocurrencies, and Themes Trading products. The broker highlighted that it will convert share fractions into actual shares when the cumulative fractions reach one full unit, thus granting clients complete ownership rights of their investments.
Under the "Saving Plan," the broker allows clients to set up recurring investments, which they can further adjust based on the available funds.
"With the introduction of fractional trading and the new 'Saving Plan,' we are offering our clients unprecedented flexibility and control over their investments," said Jan De Schepper, Chief Sales and Marketing Officer at Swissquote. "This solution not only meets market demand but sets a new standard in the industry."
Although fractional share trading has become very popular, it has also attracted the attention of regulators. The Cyprus Securities and Exchange Commission recently clarified when that such investments qualify as direct share ownership under MiFID II. From next year, the Financial Industry Regulatory Authority (FINRA) will also mandate the reporting of fractional shares as a whole number.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
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The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
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Join us at FMLS:24 to connect with global institutional brokers. Secure your spot today! #fmls24
Join us at FMLS:24 to connect with global institutional brokers. Secure your spot today! #fmls24
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🌟 Explore cutting-edge solutions and connect with fintech leaders at FMLS:24!
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🤝 Meet industry leaders at the premier event for brokers – FMLS:24. Secure your spot today!