Fidelity launches real-time fractional shares trading for stocks and ETFs
Fidelity Investments has launched real-time fractional shares trading of stocks and ETFs –also known as dollar-based investing.
This simplified way of investing, which is being rolled out to Fidelity’s retail customers over the next few weeks, allows investors to trade as little as 0.001 of a share using Fidelity’s Mobile app for iOS and Android.
Fidelity is the only brokerage firm to offer zero online commissions for stock and ETF trades, zero account minimums, zero account fees for retail brokerage accounts, a higher cash sweep rate versus the other largest online brokerage firms, regardless of investable assets, and continues to forgo payment-for-order-flow from market makers for stock and ETF trades, helping facilitate industry leading price improvement for customers.
Fidelity will execute all fractional trades in real-time during market hours, meaning customers will always know the share price, unlike some firms that execute fractional trades at the end of a trading day or wait for multiple orders to add up to full shares. Fractional share or dollar-based trades, which must be market or limit order types and are good for the day only, are available in eligible Fidelity retail accounts, including brokerage, HSAs, IRAs, and self-directed brokerage accounts via a workplace retirement plan.
“Investing at Fidelity just got easier, and more accessible, with dollar-based investing,” says Scott Ignall, head of Fidelity’s retail brokerage business. “Leveraging Fidelity’s award-winning mobile apps and brokerage platform, customers can now own a piece of their favourite companies and ETFs based on how much they want to invest, independent of the share price.
“Fidelity’s size, private structure, and leading positions across various marketplaces (including retail, institutional, and intermediary) are unmatched in our industry and put us in a unique position to deliver greater value to our customers,” says Ignall. “In addition, customers have access to unmatched stock and ETF research to confirm or generate new investing ideas.”