Firstrade to go live with fractional trading in December
“This move isn’t just about offering more investment choices; it’s about making the market more accessible.”
Firstrade, a pioneering commission-free online brokerage, announced plans to launch Fractional Share Trading in December.
This feature, aimed at democratizing stock ownership, is expected to make high-priced stocks like Nvidia (NVDA) and Meta Platforms (META) more attainable for the average investor.
Lowering the entry barriers for investors
Firstrade’s introduction of fractional shares allows investors to begin their investment journey with as little as $5. “This move isn’t just about offering more investment choices; it’s about making the market more accessible,” said John Liu, CEO of Firstrade. The feature, which integrates effortlessly with Firstrade’s existing suite of services, including automatic dividend reinvestment, is set to be rolled out on the company’s web platform, with a mobile update slated to follow soon after.
Fractional share trading has the potential to significantly lower the entry barriers for investors, particularly those who might find it challenging to invest in companies with high per-share prices. By allowing investments in fractions of a share, Firstrade aims to level the playing field, enabling retail investors to participate in the wealth generation offered by prominent companies that were previously out of reach.
The feature is designed to integrate seamlessly with Firstrade’s comprehensive suite of services. Users can expect the same no-commission trades on stocks, ETFs, options, and mutual funds, alongside a selection of fixed income products. The brokerage also offers no-fee IRA retirement services and advanced tools, aimed at empowering self-directed investors.
Established in 1985, Firstrade has been at the forefront of offering innovative financial solutions at the lowest cost. The company has a rich product line that includes commission-free trades on a range of financial instruments and a customer-centric approach encapsulated in its guiding principle: “Clients’ Experience First.”
Firstrade has become a 100% online broker
Last month, Firstrade announced a groundbreaking achievement: 100% of its customers are now engaged in online trading, eliminating the need for broker-assisted trades entirely.
This transformation reflects the industry’s complete shift to online trading as well as Firstrade’s dedication to enhancing User Experience, optimizing System Performance, and refining Corporate Action Handling to cater to the evolving preferences of self-directed investors.
The financial landscape has witnessed a significant shift in customer behavior, driven by technological advancements and changing market dynamics. Firstrade has been at the forefront of this transformation, aligning its services with the preferences of modern investors. The achievement of zero broker-assisted trades is a testament to the firm’s ability to adapt and respond effectively to customer needs.
Last year, Firstrade added crypto trading to its platform in a milestone move for the New York-based traditional online brokerage.
Firstrade is a US broker with one of the fastest trade execution capabilities. For most of 2018, the firm recorded an average trade execution speed of 0.068 seconds, beating everyone else, according to a blind comparison report of most online brokerages from S3 Matching Technologies through Apex Clearing Corporation.