Exciting! Will we still be able to easily buy ‘whole’ shares? Currently, I usually set the amount 5% over just to make sure I have enough to buy a share. Will this mean I’ll now end up with 1.05 shares every time?
And will we be able to not only buy 1x share, but 0.5, 0.25 etc? Otherwise those odd fractions are going to drive me nuts!
Just out of curiosity, will we have the option of buying a whole share and a fraction of the share? Personally I’d only want to use the fractional shares function for certain shares.
Exciting times ahead though for Freetrade! I’ll be able to finally invest in Amazon & Alphabet which is fantastic.
I wouldn’t assume so. The order process has been designed around ordering a £ amount of shares, which is perfect for fractionals, but I don’t see how it could accommodate ordering whole shares unless something is changed.
I’ve seen similar things on currency exchanges that could give insight to how it may work.
Say you’re buying EUR with GBP. You can say you want £100 worth of EUR and you’ll get €118.69 as of writing. Or you can say you want €100 and it will cost you £84.25 at the moment.
I could imagine a similar thing in specifying that I want £50 of a stock, or that I want 0.5, 1.0, or however many shares.
In both of these cases, there would ideally be additional UI to control limit orders, which are on the FT road map for medium term (3-6 months). I want 0.5 shares but I only want to pay X for them. Or I want £50 worth of shares as long as they cost X or less.
Exciting times anyway. Looking forward to seeing what they come up with.
I can only see me using fractionals to buy Google and Amazon. The rest I’ll be sticking to buying like usual nice wee feature but for folk who want to diversify with low funds.
Not only. For anyone with a strategy to allocate specific percentages to holdings. Albeit that will be more exciting once fractional etfs are introduced.
There must (i.e. should) be a way to buy whole shares.
I am assuming that fractions will have a higher trade fail rate. Is that correct? E.g. if I want to buy AMZN for $1,870 (around 101%), and nobody else fills the rest of the second share, then FT would probably just cancel the trade instead of covering the remaining 99% of the second share.
Just to add my voice to the above comments about how orders are currently placed. I would loose my mind if I kept ending up with 1.04 shares when I wanted 1. Would prefer to switch it off and only turn it on when I need it but I appreciate this may not be the norm or what FT would prefer
Ive sold shares on another platform that has fractional buying and if its a high value share and you don’t type the right number and all numbers after the decimal point exactly you do get left with a minute part of the share. It might sound trivial but there is often 5 or six numbers after the decimal point and they always show in your portfolio. And its too low to sell and becomes clutter
Freetrade will hold any fraction of the share that isn’t held by a user, freetrade will need to be able to hold a fraction of every share that is available in fractions
Codf don’t get me wrong the residue from previous share sales is down to me, I thought one or two points after the decimal point would be enough and it was’t. If you get number right it works a treat.