Interactive Brokers extends fractional trading to Nasdaq Copenhagen shares

abdelaziz Fathi

Interactive Brokers LLC (NASDAQ:IBKR) has expanded its fractional trading feature for European stocks and ETFs, four years after its initial launch for US securities back in 2019.

Traders using Interactive Brokers can now trade shares on the Nasdaq Copenhagen (CPH) and the Prague Stock Exchange (PSE). Moreover, Interactive Brokers also introduced the fractional trading option for eligible shares on the Nasdaq Copenhagen, providing clients with increased access to international markets and more diverse trading opportunities.

The move, geared toward attracting more young clients, eliminates the barriers that many investors face when trying to invest in a diversified portfolio of listed securities. Fractional share trading allows investors to diversify their investment portfolios by spreading their relatively small capital over a broader range of stocks.

Charles Schwab was the first among US major brokers to let investors buy and sell fractions of stocks. As they looked beyond the no-fee trading war, the move set off a new rush among other brokers to do the same amid increased competition in the industry to attract the next generation of investors.

IBKR explains that the new feature comes in handy for both Lite and Pro clients who can’t afford to pay a high price tag for companies like Amazon or Google. A total of 2.26 million customer accounts were active at IBKR during May 2023, up 19 percent higher year-on-year.

The Greenwich, Connecticut-based company also revealed that on average it charged clients commission fees of $3.08 per order compared to $3.18 in April. This figure includes exchange, clearing and regulatory fees, with the key product metrics coming out at $1.95 for stocks, $4.43 for equity options and $4.36 for futures orders.

“Clients seeking to diversify and take advantage of new trading opportunities across geographies in Europe and around the world, can now add Danish and Czech stocks to their portfolios while benefiting from Interactive Brokers’ low costs and the ability to trade products across asset classes from a single unified platform,” said Milan Galik, Chief Executive Officer of Interactive Brokers. “Adding Nasdaq Copenhagen and the Prague Stock Exchange reinforces our commitment to providing our clients with the greatest breadth of investment products.”

Fractional shares trading is available on all Interactive Brokers’ trading platforms including IBKR GlobalTrader, a mobile trading application to trade global stocks. European stocks and ETFs listed on select exchanges, and with an average daily volume above $5 million and market cap above $5 billion, are eligible for European fractional shares trading.

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