Mexico gets US fractional shares trading via GBM – Drivewealth partnership

Rick Steves

Drivewealth is a pioneer in fractional investing and has much to do with the momentum for real-time fractional trading within the industry.

Grupo Bursátil Mexicano (GBM) is bringing US fractional shares trading to Mexico via partnership with DriveWealth.

The investment platform and brokerage firm wants to transform the investing landscape and democratize investing in Mexico, a very trendy mission nowadays.

Drivewealth is a pioneer in fractional investing and has much to do with the momentum for real-time fractional trading within the industry.

Its technology and API-based brokerage infrastructure will be deployed at GBM to provide affordable and expanded access to investing in U.S. equities.

Only 298,000 brokerage accounts in Mexico at the end of 2019 had access to US stock trading, according to the National Banking and Securities Commission (CNBV).

GBM has more than two million accounts today and now, customers can invest on a dollar equivalent basis rather than per share.

The Mexico-based broker is taking this step through the company’s Trading USA tool powered by DriveWealth, allowing everyday investors to gain access to investing in U.S. securities.

Bob Cortright, founder and CEO of DriveWealth, commented: “DriveWealth is on a mission to open the doors for more investors around the world to gain affordable access to the U.S. markets through embedded investing. Our partnership with GBM will help to remove the traditional barriers to investing in the U.S. markets for the Mexican population and marks an additional milestone for us as we progress our mission to democratize investing for the Latin American region, following our recent partnership with Chilean-based investment platform, Racional.”

Pedro de Garay, co-CEO of GBM, said: “Our clients have consistently vocalized their desire to invest in the U.S. stock market, which previously had been accessible to only the most wealthy Mexican citizens. Thanks to our partnership with DriveWealth, the U.S. market is now easily accessible to all members of the Mexican population, creating new opportunities for citizens to improve their financial wealth through fractional equities trading.”

DriveWealth has recently raised $450 million in a Series D funding round that values the firm $2.85 billion. The fresh capital injection was led by New York-based private equity Insight Partners and venture capital investor Accel.

The new investment also saw a ‘significant participation’ from Greyhound Capital, Softbank Vision Fund, and Series C lead Point72 Ventures, DriveWealth said on Friday.

A follow-on investment from Fidelity International, plus several new backers including Base 10, FTX, and FlightDeck, also bankrolled the company’s third capital infusion.

The company intends to utilize the new funds to make new hires across several functions, strengthen its current technology stack, make strategic acquisitions, and grow the organization “on every continent” to scale its business.

DriveWealth will also use the Series D investment to launch a self-clearing hub and accelerate partnerships with digital wallets and brokerage apps.

The collaboration with other platforms enables foreign investors to build portfolios of US stocks, ETFs, and ADRs with low costs starting from $0.99 per trade.

The fractional trading feature also eliminates the barriers that many investors face when trying to invest in a diversified portfolio of high-value securities.

In addition, the partnerships leverage DriveWealth’s clearing capabilities to enable retail investors to transfer funds at lower costs, and manage their investments under a completely digital platform.

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