Charles Schwab to Allow Investors to Buy and Sell Fractions of Stocks
Charles Schwab is at it again. It was the first traditional company to eliminate fees for U.S. stocks, ETFs and options trades, and others soon followed. Now the online broker will soon let its clients trade fractions of stocks, aiming to lower the barrier of entry for new investors.
In the coming months, Schwab clients that want to own Amazon stock won’t to have $1,762 in their account to purchase a full share. It’s a push to attract a younger demographic, Schwab told the WSJ.
Schwab is not the first company to offer partial stock trades, just like it wasn’t the first to offer no fee trades. Smaller companies like SoFi Invest, Stockpile, Betterment and Stash already let you buy fractions of stocks. Schwab has not said when the new option will launch or if the fractional trades would have fees.