The Rise of Fractional Trading in Singapore: Empowering Retail Investors

In recent years, fractional trading has revolutionized the investment landscape, making it more accessible and flexible for retail investors. This trend has gained significant momentum globally, including in Singapore. Let’s explore the rise of fractional trading and its impact on investors in the Lion City.

What Is Fractional Trading?

Fractional trading allows investors to own less than one whole share of a company. Instead of being restricted to buying shares in lots of 1,000 or 100, investors can now invest in a fraction of a share – for a fraction of the cost. This democratizes investing, as no stock is too expensive to consider.

Fractional Trading in Singapore

While fractional trading is more prevalent for U.S. stocks, several brokerages in Singapore offer this feature. Notable platforms include:

1. Interactive Brokers: Offers fractional shares trading for both U.S. and European markets.
2. Syfe Trade: Provides fractional shares trading for U.S. stocks.
3. Tiger Brokers: Allows fractional trading for U.S. stocks.
4. Webull: Also offers fractional shares trading for U.S. stocks.

Investors should note that not all shares are eligible for fractional investing, so it’s essential to check availability for specific stocks or ETFs.

Benefits of Fractional Shares

1. Gain Only the Exposure You Want

   The primary advantage of fractional shares is that investors can gain exposure to specific companies without having to buy an entire share. For instance, if you want to invest in Microsoft shares regularly, you can allocate a fixed amount (e.g., US$100) each month. Fractional trading allows instant access to a fraction of Microsoft shares, bypassing the need to wait until you can afford a full share.

2. Build Your Own Mini-Portfolio

   Fractional shares are not entirely new. Investors who have bought into ETFs or unit trusts have already experienced fractional ownership. These investment vehicles provide exposure to hundreds of stocks with relatively small amounts of capital. With fractional trading, you can create your mini-portfolio by investing in various companies, diversifying your holdings effectively.

Contemi Nova: Streamlining Post-Trade Processing

Beyond fractional trading, let’s explore Contemi Nova, a post-trade processing software system used by over 50% of brokers in Singapore. Here’s how it benefits investment banks and stockbrokers:

• Modular and Configurable: Nova is highly customizable, supporting multi-market, multi-currency, multi-entity, and multi-asset class operations.
• Cost Reduction: By automating post-trade processes, Nova reduces resource and system costs.
• Efficiency: Nova streamlines end-to-end processes, enhancing operational efficiency.

Fractional trading empowers retail investors, allowing them to invest in their favorite companies without financial constraints. As Singapore’s investment landscape evolves, platforms like Contemi Nova play a crucial role in optimizing post-trade operations. Whether you’re a seasoned investor or just starting, fractional trading and robust post-trade solutions are shaping the future of investing in Singapore.

For media queries, please contact:
Vani Parmar
Head of Brand & Marketing
Vani.parmar@contemi.com