Podcast Center
Video Center
Webcasts
Resource Center
Events
By 
September 28, 2021 at 09:52 AM
What You Need to Know
- Fidelity said fractional share trading is available through Wealthscape, its advisor technology platform.
- It can be used for stock and ETF trades through market or limit orders and is executed in real time.
- The new advisor capability follows a similar offering for retail clients introduced last year.
Fidelity Institutional, which serves wealth management firms and other institutions, has started rolling out fractional share trading for stocks and ETFs to advisors this month.
The new capability allows advisors to offer proprietary strategies to a broader set of clients, including younger clients, at lower minimums, and helps advisors build more customized portfolios based on clients’ needs and desires.
In addition, said Fidelity, fractional trading makes it easier for advisors to address tactical situations such as raising cash from high-priced securities or reducing concentrated positions in similar securities previously bought at a low price and subject to large capital gains when sold.
“With our industry offering more personalization for investors, advisors have been looking for a way to more finely tune investor portfolios,” Ryan Plotner, head of Transaction and Banking Solutions at Fidelity Institutional, said in a statement. “With fractional share trading, we’re now giving advisors the ability to address that challenge.”
