HOOD - Interactive Brokers launches fractional shares trading for Canadian stocks ETFs

2023-08-01 11:19:48 ET

Interactive Brokers ( NASDAQ: IBKR ) introduced fractional shares trading in Canadian stocks and exchange-traded funds (ETFs), it said on Tuesday.

That means clients can divide investments among more stocks to achieve a better-diversified portfolio and put small cash balances to work quickly to maximize potential returns.

The move comes as “fractional shares trading has been extremely popular for US and European stocks and ETFs," said Steve Sanders, executive vice president of Marketing and Product Development at Interactive Brokers. It ramps up IBKR's competition with other online brokerages offering fractional shares trading, including Charles Schwab ( SCHW ), Fidelity and Robinhood Markets ( HOOD ).

Users of IBKR can now buy and sell fractional shares of all stocks and ETFs listed on the  Toronto Stock Exchange and on CBOE Canada, plus eligible US and European stocks and ETFs. They can use a cash quantity order to place orders in a specific cash amount. Fractional shares will automatically be bought or sold if the cash amount does not line up with a whole number of shares.

Toward the end of July, Interactive Brokers expanded overnight trading hours to over 10,000 stocks and ETFs.

More on Interactive Brokers:

• Interactive Brokers: Ahead Of The Pack
• Interactive Brokers adds access to Taiwan Stock Exchange
• Interactive Brokers Q2 earnings miss as commission revenue stalls Y/Y

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