Interactive Brokers Introduces Fractional Shares Trading in European Stocks and ETFs

Rhea-AI Summary

Interactive Brokers has launched fractional shares trading for European stocks and ETFs, expanding its successful U.S. offering. Clients can now buy and sell fractional shares with no minimum for European stocks and can invest in U.S. shares for as little as USD 1.00. This feature allows investors to utilize small cash balances effectively, fostering diversified portfolios. Fractional shares will be available on all trading platforms, targeting stocks with specific trading volumes and market caps. This move enhances affordability and accessibility for international investors.

Positive

• Launch of fractional shares for European stocks and ETFs enhances investment accessibility.
• No minimum investment required for European shares; U.S. shares can be purchased from USD 1.00.
• Allows investors to diversify portfolios with fractional investments, utilizing small cash balances efficiently.
• Fractional shares available on all trading platforms, increasing user engagement.

Negative

• None.

Expanded Offering Builds on Success of U.S. Fractional Shares

GREENWICH, Conn.--(BUSINESS WIRE)-- Interactive Brokers (Nasdaq: IBKR), an automated global electronic broker, today announced the launch of fractional shares trading for European stocks and ETFs. Clients of Interactive Brokers can now buy and sell fractional shares of eligible U.S. and European stocks and ETFs, providing a simple way to build a balanced portfolio and invest in shares regardless of the share price. Fractional shares are stock units that amount to less than one full share.

With fractional shares, there is no minimum for European shares and investors can invest in U.S. shares with as little as USD 1.00, irrespective of the stock price. Investors can use fractional shares to maximize returns by putting small cash balances to work quickly, instead of holding cash and potentially earning lower returns. In addition, Interactive Brokers offers cash quantity stock orders, which lets clients place orders in a specific cash amount. Fractional shares will automatically be bought or sold if the cash amount does not line up with a whole number of shares.

“Interactive Brokers was the first big broker to introduce fractional trading in U.S. shares and it’s been very popular with our clients,” said Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers. “Adding European fractional shares gives investors the opportunity to trade across markets in a more affordable way, in addition to the benefit of investing in more stocks to help clients achieve diversified portfolios.”

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

For additional information, please visit:

United States and countries served by LLC: Fractional Shares
Canada: Fractional Shares
United Kingdom: Fractional Shares
Western Europe: Fractional Shares
Central Europe: Fractional Shares
Australia: Fractional Shares
Hong Kong: Fractional Shares
India: Fractional Shares
Singapore: Fractional Shares

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 150 markets in numerous countries and currencies, from a single unified platform to clients worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. For the fifth consecutive year, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its March 25, 2022, Best Online Brokers Review.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220531005157/en/

Interactive Brokers Group, Inc.

Katherine Ewert, media@ibkr.com

Source: Interactive Brokers Group, Inc.

FAQ

What is the new offering by Interactive Brokers regarding fractional shares?

Interactive Brokers has launched fractional shares trading for European stocks and ETFs, allowing clients to buy and sell shares irrespective of full share prices.

What is the minimum investment required for fractional shares at Interactive Brokers?

There is no minimum investment required for European stocks, and investors can start investing in U.S. shares with just USD 1.00.

When was the fractional shares trading launched by Interactive Brokers?

The fractional shares trading for European stocks and ETFs was announced in a press release dated May 31, 2022.

What are the benefits of fractional shares trading offered by Interactive Brokers?

The fractional shares trading allows for easier diversification of portfolios and enables investors to maximize returns with small cash balances.

Which markets are eligible for fractional shares trading at Interactive Brokers?

Fractional shares trading is available for European stocks and ETFs listed on select exchanges with significant average daily volume and market cap.