Robinhood Adds Fractional Stock Offering

The fractional stock trend grows in the forex market as Millennial-centered investment broker Robinhood opens the feature in their app. As major brokers catch up with free-trade commissions, the firm launched the feature for competitive advantage.

First-time investors can now invest for less in the platform to diversify their portfolios with their preferred stocks.

Robinhood said it would lure investors with small capitals into the platform. With only as much as $1 rather than one full share, investors can still get its corresponding value.

Fractional trading will be available to waitlist-approved users by December 16. The rest of the batch can access the feature by end-2019 or early 2020.

The broker expended its cryptocurrency trading services last November to 8 more states, expanding to 47.

Charles Schwab Corp, who recently reduced its fee from $4.95 per trade to zero, also announced adding fractional stock offerings. However, the brokerage giant has not revealed an exact date for its launch.

Square added the feature in its Bitcoin-friendly platform Cash App last October. Investors can also use fractional stocks in Stockpile and Betterment apps.

The company announced letting users automatically invest cash dividends and schedule investments starting next year.

Robinhood’s Cash Management App

Robinhood launched a feature in its investing app that allows investors to use Robinhood-branded debit cards for uninvested cash. Cash Management follows the company’s attempt for a savings product with a 3% interest rate.

Whatever investors may put into their Cash Management account, the amount will be insured by the federal government. Its current interest rate is 1.8%, but there are no account minimums, foreign transaction fees, and transfer fees.

An account under Cash Management gives you the brokers’ Mastercard investors can use for more than 75,000 ATMs. The card has four designs investors can choose from as soon as they sign up for the account.