CFD and FX broker, RoboMarkets has updated its trading offering to provide its clients with the ability to trade fractional shares.
The CySEC regulated broker is rolling out fractional trading functionality as a way to lower the bar for young investors. This feature allows small dollar traders to diversify their portfolios by spreading their relatively small capital across a wider range of stocks.
The move, intended to attract more young clients, removes the hurdles many investors face when the brokerage intentionally splits entire shares, so they can sell fractions of shares.
Kiryl Kirychenka, Product Manager at RoboMarkets, says: “Congratulations to all users of R StocksTrader. This is the functionality that many of our customers wanted us to add to the platform. RoboMarkets clients now have more investment and diversification opportunities 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 customers can purchase a “slice” of shares that represents a partial share. For example, they can buy 1.5 or 1.05 Amazon shares, or any other company available on the platform. Meanwhile, the minimum order volume remains the same – one share.
This new product provides an affordable gateway to investing in blue chip stocks and allows RoboMarkets investors to build low cost equity portfolios, CFDs. The split trading feature removes the hurdles many investors face when trying to invest in a diversified portfolio of high value stocks.
The trend has accelerated as retail brokers look beyond the no-cost trade war, which has sparked a new rush among other firms to do the same amid heightened competition in the industry to attract the market. next generation of investors.
Meanwhile, RoboMarkets has highlighted how more attractive its offering is to a wider audience since it executes all fractional trades in real time during market hours. This runs counter to the products of other companies that execute similar trades at the end of a trading day or wait for multiple orders to total full shares rather than keeping the remaining shares on their balance sheet. However, this means more market risk and exposure to volatility.
RoboMarkets has also added over 500 new assets and eight additional languages to its proprietary multi-asset platform, R StocksTrader, along with an improved mobile app.
The RoboMarkets brand emerged to separate RoboForex’s European offering from its international offering, primarily driven by new regulations passed by financial market regulator ESMA, which ultimately created a different scene in the online retail industry.
In addition to 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.