Our Partner XTB is set to introduce Fractional Shares. This will be available to all clients from the 2nd of October.

Fractional Shares: What Are They?

Parts or fractions of an asset that are less than a whole share can be purchased through a type of order known as fractional shares. Your exposure would be 50% of a usual share, for instance, if you could invest in half of Meta's shares rather than the whole amount. By doing this, you are investing in a share that is only half of a full share (0.5). XTB categorise fractional shares in a manner similar to that of a whole share is significant because it means that you have a fiduciary right to certain advantages, such as dividends, that come with whole share ownership.

How much do fractional shares cost?

With a 0% charge of up to 100,000 euros per calendar month, XTB provides both regular and fractional investment in real stocks and ETFs. You must pay a fee of 0.2% with a minimum payment of 10 euros for any investments you make that are greater than 100,000 euros every calendar month.

In what ways are your fractional shares protected?

XTB offer the same level of protection for fractional shares as they do for whole shares. The broker maintains all of your shares in a custody account with complete segregation. Visit the specific website for additional details: FAQs on Fractional Investing.

Alterations to the Best Execution Policy or the Terms of Business?

In order to better inform their clients of how XTB can handle your fractional investments, including custody, the broker has amended their Terms and Business and Best Execution Policy. These alterations will be operational as of October 2, 2023.

How to get started?

1. Access your XTB account by logging in (or, if you're new to XTB, register).
2. Go to their platform's MarketWatch tab and choose "Stocks (STC)"
3. Choose the stock or ETF that you want to invest in.
4. Specify your desired investment amount.
5. Once you confirm the trade, it’s all done

(Sources: xtb.com)