What is a fragmentary strand？

A fractional stock is a product that allows investors and traders to hold a small portion of an existing stock or ETF。For example, using fractional stock trading, you can buy a one-tenth share of chipmaker Broadcom (AVGO), which trades at about 816 per share..00 dollars, otherwise it may be too expensive for many retail traders。

A fractional stock deal also gives customers more money because they can put all their cash into it。For example, by purchasing 1.22 Broadcom shares, will be 1000.$00 into the stock。

At XTB, fractional stock trading is free of commission unless your monthly turnover exceeds €100,000。In this case, your transaction will be charged 0.2% commission and 10.Minimum fares of 00 euros。

How XTB treats fractional shareholders？

In XTB's fractional share transaction, customers holding fractional shares and ETFs will be treated the same as full shareholders and will receive fiduciary rights such as dividends and corporate actions, but fractional shareholders will not have voting rights because there is currently no mechanism to allow shareholders holding less than one share to vote.。

How XTB will hold and manage fractional shares？

XTB will hold relevant shares representing fractional share holdings in a dedicated escrow account, such as one share of Tesla stock, which may be split into three fractional shares, with one holding one-half of the shares and two holding one-quarter each。

How to trade fractional shares in XTB？

Once XTB has started fractional trading, customers can use the service by logging into their XTB account, navigating to the Stocks tab in the platform's Market Watch area, and selecting the stocks or ETFs they want to trade。The fractional shares are bought and sold at the same price as the underlying stock or ETF.。

Precautions

Fragment trading is a tool that helps democratize investing and allows more people to enjoy the benefits of long-term investing。XTB has chosen to reference the treatment of full shareholders in its new fractional stock trading service and will not treat these holdings as derivatives or CFDs。

European regulator ESMA suggested earlier this year that fractional stock trading should be seen as a form of derivatives trading.。

HM Revenue and Customs (HMRC) is said to have launched an investigation into UK brokers offering fractional stock deals in July and investigated whether the fractional shares were ISA eligible.。HM Revenue and Customs' view at the time was that fractional shares were not eligible for international investment accounts。