RoboMarkets jumps on fractional stock trading bandwagon
CFDs and FX broker, RoboMarkets has updated its trading offering to provide its clients with the opportunity to trade fractions of stocks.
The CySEC-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.
Kiryl Kirychenka, Product Manager at RoboMarkets says: “Congratulations to all R StocksTrader users. This is the feature many of our clients wanted us to add to the platform. RoboMarkets clients now have more opportunities for investments and diversification that were not available before. The ability to invest in precise ratios gives you complete portfolio control and enhanced rebalancing options.”
With fractional shares, RoboMarkets’ 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 RoboMarkets’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, RoboMarkets 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.
RoboMarkets also added over 500 new assets and eight additional languages to its proprietary multi-asset platform, R StocksTrader, as well as an enhanced mobile application.
RoboMarkets brand has emerged to separate the European offering of RoboForex from its international offering, mainly driven by new regulations adopted by the financial markets regulator ESMA, which ultimately created a different scene in the online retail trading industry.
Aside from its Cypriot license, RoboMarkets is regulated in Malaysia and Belize. The company also received a license from the National Bank of the Republic of Belarus in 2019.