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Re: Fractional share trading at Fidelity is here


@yogibearbull wrote:

@BigTom wrote:

@yogibearbull wrote:

2 things are holding up acceptance of ETFs in 401k/403b.

1. A brokerage window is required.

2. Auto-investing in $/wk or $/mo isn't possible due to whole # of shares requirement.

With fractional share trading, the 2nd issue is solved.

In the long-term, 401k/403b market is the target for these changes.

Current Fido restriction to mobile app is just to do a test drive and gain experience.


You always make great points with your posts. 

Slightly off topic, did you have to update your Fidelity app to get the fractional trading to work?


No, but I had to click Quick Ticker at the top - otherwise, it wasn't taking fractional shares in a test order that was cancelled on the last screen.


@yogibearbull 

What is Quick Ticker???  Is that the same thing as the stock lookup icon?

ctyankee

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Re: Fractional share trading at Fidelity is here

@ctyankee , it just appeared on the top of my mobile screen and indicated to click there for fractional shares.

YBB
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Re: Fractional share trading at Fidelity is here


@yogibearbull wrote:

@ctyankee , it just appeared on the top of my mobile screen and indicated to click there for fractional shares.


@yogibearbull 

On the top of what specific screen?  This is frustrating as I called Fidelity and they have no idea what a Quick Ticker is ..

ctyankee

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Re: Fractional share trading at Fidelity is here


@ctyankee wrote:

@yogibearbull wrote:

@ctyankee , it just appeared on the top of my mobile screen and indicated to click there for fractional shares.


@yogibearbull 

On the top of what specific screen?  This is frustrating as I called Fidelity and they have no idea what a Quick Ticker is ..

ctyankee


The feature is being 'rolled' out over the next week so you may not have it yet.
I know I don't have it because I looked everywhere. lol
I will let Yogi answer the 'location' of QT.

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Re: Fractional share trading at Fidelity is here

I just checked Fido mobile app. On Stock/ETF screen, it shows shares or dollars. That Quick Ticker at top of trading screen was one time thing & I never saw it again.

YBB
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Re: Fractional share trading at Fidelity is here

All,

Fractional shares are now available for my account at Fidelity.  Sadly, there were smart enough to exclude BRKA from the process.

ctyankee

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Re: Fractional share trading at Fidelity is here


@ctyankee wrote:

All,

Fractional shares are now available for my account at Fidelity.  Sadly, there were smart enough to exclude BRKA from the process.

ctyankee


BRK-B is already available!  What about it?  8-))

 

ElLobo, de la casa de la toro caca grande
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Re: Fractional share trading at Fidelity is here


@BigTom wrote:

@ctyankee wrote:

@BigTom wrote:

El,

An advantage of trading fractional shares is it will allow people to buy AMZN and higher PPS stocks for less then their current market price. For example, you can buy a fractional share of AMZN for $100 instead of $1800. 

When was the last time any of the “high flyers” split their stock? I think forcing all companies trading over $100 to split their stock would solve this issue but that is another topic all together..


@BigTom 

It is a different subject.  But, from the company's perspective, keeping a stock price high does stop Retail customers from picking your stock to short, which is quite embarrassing as it is widely reported if the number of short sellers is high.  Shorting a high priced stock requires a lot of money and conviction.  And when it doesn't work ... that's how billionaires become millionaires again.   No wonder Elon Musk is dancing.  

ctyankee    


Not only shorting but going long it's shares too. 
A new retail investor, who has little money, does not have the opportunity to invest in its shares.
A point can be made, new investors and investors with limited funds are being "disenfranchised" by this.

Shorting high flyers is no joke when coming to the amount of funds (or margin) needed and going against the momentum of a stock.
As I am short AMZN and recently TSLA (as of yesterday in after hours)


@BigTom 

I admire your candor.  Too many here seem to post their wins and forget about the things that don't go their way.  

For those with individual stocks in our portfolios, we all have winners and losers and for those primarily in ETFs or OEFs ... their losers are just behind the scenes. 

ctyankee  

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Re: Fractional share trading at Fidelity is here

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Re: Fractional share trading at Fidelity is here


Fantastic news!  And I think a lot of folks in the industry were surprised by the lead move on this from Fidelity in the big Brokerage space.  Others talked about launching Fractional Shares investing - but Fidelity just went ahead and did it.  

The key I'm looking for is Dollar-Based investing for ETFs - and opening that up in the future for automatic investing in 401k plans and even IRAs.  Great for young individuals to get started and just send money without having to calculate X number of shares needed per ETF.  

It also allows for ease of diversification with periodic contributions - just like with Mutual Funds.  If a young person wishes to contribute $500 across say 4 or 5 ETFs with consistency and ease say monthly, they can do so with dollar-based investing.

 

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Re: Fractional share trading at Fidelity is here


@Kenster-man wrote:


Fantastic news!  And I think a lot of folks in the industry were surprised by the lead move on this from Fidelity in the big Brokerage space.  Others talked about launching Fractional Shares investing - but Fidelity just went ahead and did it.  

The key I'm looking for is Dollar-Based investing for ETFs - and opening that up in the future for automatic investing in 401k plans and even IRAs.  Great for young individuals to get started and just send money without having to calculate X number of shares needed per ETF.  

It also allows for ease of diversification with periodic contributions - just like with Mutual Funds.  If a young person wishes to contribute $500 across say 4 or 5 ETFs with consistency and ease say monthly, they can do so with dollar-based investing.

 


@Kenster-man 

Interesting.  Thanks for sharing your perspective.  

As mentioned recently in Barron's, fractional shares also open up the huge market of 401K programs for ETFs.  

Fidelity is huge in 401K programs, so it makes sense to me that they will aggressively market their own EFFs for 401K programs.  As it is now, I bet HR groups are getting tired of answering questions from young employees as to why they can't get cheap ETFs in their 401K program, but instead get more costly, stodgy five-lettered mutual funds that only Grandpa would love. 

ctyankee

  

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Re: Fractional share trading at Fidelity is here [Schwab $5 Stock Slices]

Schwab version of fractional trading is here - $5 stock slices. One can buy 1 slice or up to 10 slices of any SP500 stock in a single transaction.

https://www.marketwatch.com/story/charles-schwab-introduces-stock-slices-service-allowing-investment...

Website Info   https://www.schwab.com/stock-slices

YBB
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Re: Fractional share trading at Fidelity is here [Schwab $5 Stock Slices]


@yogibearbull wrote:

Schwab version of fractional trading is here - $5 stock slices. One can buy 1 slice or up to 10 slices of any SP500 stock in a single transaction.

https://www.marketwatch.com/story/charles-schwab-introduces-stock-slices-service-allowing-investment...

Website Info   https://www.schwab.com/stock-slices


I guess the stock slices might be nice for a grandparent who wants to select 10 stocks for a total of $50 and get grandchildren started in stock investing.  Beyond that, without a strong commonality or thematic approach to the slices, I'm not sure picking out multiple slices has a rhyme or a reason.  

ctyankee

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Re: Fractional share trading at Fidelity is here [Schwab $5 Stock Slices]

@ctyankee , stuff is being tried for fractional shares by Interactive Brokers, Fido, Schwab and others [Folio, Motif (failed), etc]. But once streamlined and more common, the huge market in-waiting is the workplace retirement plans [401k/403b].

YBB
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Re: Fractional share trading at Fidelity is here [Schwab $5 Stock Slices]

Long ago I found that I did not like timeshares in real estate. Something tells me that I would not like to own a timeshare in a stock either.

Capital
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Re: Fractional share trading at Fidelity is here [Schwab $5 Stock Slices]


@Capital wrote:

Long ago I found that I did not like timeshares in real estate. Something tells me that I would not like to own a timeshare in a stock either.


Not a good analogy.

In a RE timeshare, investors end up paying much more [often 2x-3x] for fractional shares than the proportionate price of the entire RE unit. But here, fractional share buyers are paying almost the same price proportionately as those buying whole shares or round lots.

I have tried Fido App for fractional shares for my granddaughter's UTMA and it worked fine.

I looked to try Schwab's new feature but didn't find any related order screen and then I saw that the announcement said it is coming soon.

YBB
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Re: Fractional share trading at Fidelity is here [Schwab $5 Stock Slices]

As a very small investor, mainly on the Schwab platform (I do also have a Fidelity account with one mutual fund, FSPHX), I think the fractional share option is a nice addition, and I'm mildly interested, although I doubt I'll ever use it.  I'm a bit surprised at the strong feelings some have expressed.  Seems to me as just another tool in the toolbox.  If you need it, or otherwise find it useful, great.  Otherwise, it doesn't hurt to have it available.

One obvious advantage, seems to me, would be for a young person, maybe not making a lot of money, it would make it easier to participate in some of the stocks that have a high share price, like Amazon.

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Re: Fractional share trading at Fidelity is here [Schwab $5 Stock Slices]


@yogibearbull wrote:

@ctyankee , stuff is being tried for fractional shares by Interactive Brokers, Fido, Schwab and others [Folio, Motif (failed), etc]. But once streamlined and more common, the huge market in-waiting is the workplace retirement plans [401k/403b].


Interesting that Schwab bought the tech assets and got many employees of the failed Motif,   https://www.barrons.com/articles/charles-schwab-buys-motifs-technology-51588886300

June 9 is the date for the roll-out for Schwab fractional trading.   https://www.barrons.com/articles/schwab-isnt-offering-fractional-trading-directly-to-advisors-515887...

YBB
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Re: Fractional share trading at Fidelity is here [Schwab $5 Stock Slices]

It seems that for fraction share trading, Fido and Schwab are using "Slices" in quite similar ways. Is there a legal fight brewing over the claimed SM/TM?   https://www.gerbenlaw.com/university/trademark-symbols/

Fido   https://www.fidelity.com/trading/fractional-shares

   Stocks by the SliceSM 

Schwab   https://www.schwab.com/fractional-shares-stock-slices

  Introducing Schwab Stock Slices™

YBB
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Re: Fractional share trading at Fidelity is here

Just noticed that Fido does not allow fractional share trading with (1) GTC orders (must be same day), or (2) any order type other than Market or Limit (no stops of any kind).

I’m not sure why this is, I can’t see what difference it makes. But them’s the facts.

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