Interactive Brokers Adds Fractional Shares in European Stocks and ETFs

Tuesday, 31/05/2022 | 17:24 GMT by Felipe Erazo
  • It will be offered on eligible US and European stocks and ETFs.
  • Fractional shares trading is available on platforms like IBKR GlobalTrader.
Interactive Brokers
Interactive Brokers

On Tuesday, Interactive Brokers (Nasdaq: IBKR), a major American electronic trading platform , said that it had launched fractional shares trading for European stocks and ETFs. According to the press release, Interactive Brokers’ clients can now invest fractionally in eligible US and European stocks and ETFs regardless of share price, providing a simple way to build a diversified portfolio.

“Interactive Brokers was the first big broker to introduce fractional trading in US shares and it’s been very popular with our clients. 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,” Steve Sanders, the EVP of Marketing and Product Development at Interactive Brokers, commented.

European fractional shares do not have a minimum investment requirement, and US fractional shares can be purchased for as little as $1.00, irrespective of the stock price. Fractional shares enable investors to maximize returns by putting small cash balances to work quickly rather than holding cash and potentially earning lower returns. In addition, Interactive Brokers offers cash quantity stock orders, which allow clients to place orders for a specific amount of cash. As soon as the cash amount does not line up with a whole number of shares, fractional shares will be bought or sold automatically.

Recent Financials from Interactive Brokers

There were 2.204 million DARTs reported in the brokerage recently, which is 1% higher than last year and 10% lower than last month. Client equity ended the month at $324.5 billion, which is down 6% from last year and 9% from the previous month.

Additionally, ending client margin loan balances reached $46.7 billion, which is 4% higher than last year and 3% lower than March. In other figures, 1.85 million client accounts were opened, which is 36% higher than in 2021 and 2% higher than the prior month.

On Tuesday, Interactive Brokers (Nasdaq: IBKR), a major American electronic trading platform , said that it had launched fractional shares trading for European stocks and ETFs. According to the press release, Interactive Brokers’ clients can now invest fractionally in eligible US and European stocks and ETFs regardless of share price, providing a simple way to build a diversified portfolio.

“Interactive Brokers was the first big broker to introduce fractional trading in US shares and it’s been very popular with our clients. 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,” Steve Sanders, the EVP of Marketing and Product Development at Interactive Brokers, commented.

European fractional shares do not have a minimum investment requirement, and US fractional shares can be purchased for as little as $1.00, irrespective of the stock price. Fractional shares enable investors to maximize returns by putting small cash balances to work quickly rather than holding cash and potentially earning lower returns. In addition, Interactive Brokers offers cash quantity stock orders, which allow clients to place orders for a specific amount of cash. As soon as the cash amount does not line up with a whole number of shares, fractional shares will be bought or sold automatically.

Recent Financials from Interactive Brokers

There were 2.204 million DARTs reported in the brokerage recently, which is 1% higher than last year and 10% lower than last month. Client equity ended the month at $324.5 billion, which is down 6% from last year and 9% from the previous month.

Additionally, ending client margin loan balances reached $46.7 billion, which is 4% higher than last year and 3% lower than March. In other figures, 1.85 million client accounts were opened, which is 36% higher than in 2021 and 2% higher than the prior month.

About the Author: Felipe Erazo
Felipe Erazo
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About the Author: Felipe Erazo
Felipe earned a degree in journalism at the University of Chile with the highest honour in the overall ranking, and he also holds a Bachelor of Arts in Social Communication. In addition, he has been working as a freelance writer and Forex/crypto analyst, with experience gained from several forex broker firms and crypto-related media outlets around the world. He has been involved in the world of online forex trading since 2010 and in the crypto sphere since 2015.
  • 1036 Articles
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