ActivTrades jumps on fractional stock trading bandwagon

abdelaziz Fathi

CFDs and FX broker, ActivTrades has updated its trading offering to provide its clients with the opportunity to trade fractions of stocks.

The multi-regulated broker is rolling out a fractional trading feature as a way to lower the bar for young investors. The feature allows small-bucks traders to diversify their portfolios by spreading their relatively small capital over a broader range of stocks.

The move, geared toward attracting more young clients, eliminates the barriers that many investors face as the brokerage split whole shares intentionally, so they can sell fractional shares.

With fractional shares, ActivTrades’ clients can buy a “slice” of stock that represents a partial share. For example, they can buy 1.5 or 1.05 of an Amazon share, or any other company available on the platform. Meanwhile, the minimum order volume remains the same – one share.

This new product offers an affordable gateway to invest in blue-chip shares and enables ActivTrades’s investors to build portfolios of stocks, CFDs with low costs. The fractional trading feature eliminates the barriers that many investors face when trying to invest in a diversified portfolio of high-value securities.

The trend picked up as retail brokers look beyond the no-fee trading war, which set off a new rush among other firms to do the same amid increased competition in the industry to attract the next generation of investors.

Meanwhile, ActivTrades highlighted how its offering is more appealing to a wider audience since it executes all fractional trades in real-time during market hours. This goes against other firms’ products that execute similar trades at the end of a trading day or wait for multiple orders to add up to full shares rather than holding the remaining shares on their balance sheet. That, however, means more market risk and exposure to volatility.

ActivTrades is an FCA-regulated broker that operates three branches of the business outside the UK, in Italy, Bulgaria, and in Dubai. The branch in Sofia, established in 2012, handles all the technical aspects of ActivTrades business, as well as the responsibility for risk control, and some client services.

Earlier this year, ActivTrades had partnered with Conv.rs, a Fintech company dedicated to helping businesses improve their communications with consumers via major messaging apps. The first stage of their collaboration will see ActivTrades leverage the unique capabilities of Conv.rs’ solutions to improve the user experience, which is a key factor in acquiring and retaining readers/investors. As an alternative or supplemental solution, conv.rs allows traders to engage with ActivTrades representative using their preferred messaging apps whilst enabling the company to simultaneously manage multiple conversations at once.

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