Interactive Brokers announced on Tuesday the launch of fractional shares trading for European stocks and ETFs. Clients of the automated global electronic broker can now buy and sell fractional shares of eligible US and European stocks and ETFs. Fractional shares are units of stock that represent less than one full share.
Fractional shares allow traders to invest in European shares with no minimum amount and for US shares that is as little as $1.00, regardless of the stock price.
With fractional shares, investors can maximize returns by putting small cash balances to work quickly, instead of holding cash and potentially having lower returns. Additionally, Interactive Brokers offers cash quantity stock orders, which allow clients to 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.
