How will fractional shares change your investing behaviour?

When you don’t have to worry about the cost of a single share, will you…

  • Buy into many more stocks?
  • Drip feed money into your holdings more frequently?
  • Change the type of stock you buy?
  • Something else?

For me, the price of a single share in some companies has been prohibitive so I will invest in them more. On the other end of the scale, there are companies that I invest in now because they are easier to drip feed money into, and I will probably reduce my investment in them with fractionals.

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I’ll mainly be using it for reinvesting dividends.
Hopefully we’ll also be able to set up to regularly invest each month, so it can be amount based rather than number of shares based.

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It will be way easier to weight you investments properly. Now i have to calculate how much i have to invest in msci world or em etfs because of the price. Then, I will just do 30% this, 30% this, 40% this…
Very much looking forward to it

  1. Regular rebalancing, If you have a selection of long term holdings you believe in say a portfolio of 10 stocks with 10% in each you could rebalance with each monthly deposit.
  2. Make your own mini ETF’s. I may well try a few very small % groups of stock for fun.
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I’d love to be able to do this. Pick stocks group them into ‘pots’, set ratios/allocations percentages to each and then be able to dump money into the pot and Freetrade works out the allocations and invests it for me.

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Amazing idea. You can even rebuild existing etfs without any charges/TER.

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Ye I agree here. It’s been suggested as an idea before where people can make their own portfolios. Drag and drop stuff into new groups.

Much like the watchlist there would be one master watchlist but with the ability to create watchlists within that. Eg. UK high dividend stocks etc.

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The downside is you’d have to pay stamp duty, whereas ETF’s avoid this…

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Correct! But only on the UK ones, which is the minority of products.

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This is a brilliant Idea… +1 for this.

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I’ve dabbled with fractional buying on revolut but only with shares like Alibaba and Google, shares I’ve wanted to buy for ages but couldn’t afford.
Nice to hear peoples thoughts on the subject.

Investing in too many stocks is not convenient at all. Who uses this strategy should invest in ETFs.
(Note that actively managed funds beat the market only around 20% of times).

I think I won’t change my strategy and the reason is that expensive stocks (like Google) didn’t perform better than market.

I’m fully aware of all the facts with the markets vs managed stock. But these are unique times. I will stick with my main sensible strategy but like I said with a small % I will be trying a few things out with fractional buying. There are concerns that this hive thinking on etf funds is leading to the funds being overvalued as so many people are blindly punting into them

Fractional shares will mean I’ll buy a direct position in Amazon, and Markel should it be added. I still don’t understand why US companies tend not to do stock splits.

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