Interactive Brokers has launched fractional shares trading for Canadian stocks and exchange-traded funds (ETFs). The online trading platform has also unveiled fractional shares trading for selected US and European stocks and ETFs.

According to a statement by the company, the offering of fractional shares, which will be available on all the stocks listed on the Toronto Stock Exchange and on CBOE Canada, will enable investors to invest in stocks affordably. Besides that, investors can allocate their investments to more stocks to achieve a diversified portfolio.

Economic Trading

Steve Sanders, the Executive Vice President of Marketing and Product Development at Interactive Brokers, said: "Fractional shares trading continues to be an easy and economical way for investors of any level to construct or add to their portfolios. Fractional shares have been extremely popular for US and European stocks and ETFs, and we are excited to broaden our offering to include Canadian shares."

In Tuesday's statement, Interactive Brokers outlined how fractional shares can be traded on its platform. They can be traded using a cash quantity order which allows users to place orders in a specific amount of cash. Thus the fractional shares will automatically be bought or sold if the cash amount is not equivalent to a whole number of shares.

Fractional Shares Trading

Interactive Brokers' latest development comes when fractional shares trading is gaining momentum, partly to attract young investors and enable investors to eliminate the barriers to establishing a diversified investment portfolio.

Finance Magnates reported last month that Devexperts, the software solutions provider targeting brokers and financial institutions, had partnered with DriveWealth to allow users to trade or hold small fractions of shares worth as little as a dollar. DriveWealth focuses on micro-shares and fractional liquidity .

On top of that, about a week ago, Interactive Brokers expanded its overnight trading services to include 10,000 stocks and exchange-traded funds (ETFs) listed in the US. The new offering enables traders on the exchange to access a broad range of equities for nearly 24 hours a day and five days a week.

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