What does ‘fractional investing’ mean?

‘Fractional investing’ refers to the possibility of investing in small amounts of stocks and ETFs. If you have already traded cryptocurrencies, you are probably familiar with the concept. You’re not only able to purchase one full Bitcoin, but also a fraction of it, for example, a quarter of one Bitcoin. It’s therefore also possible to purchase EUR 100 worth of BTC, as this results in a fractional ownership of BTC.

With stocks and ETFs, we want to offer you the same convenience. You don’t have to invest in a full stock, but are able to invest in a fraction of it. This especially comes in handy with high-value securities, such as Alphabet (Ticker: GOOGLE) stocks for example. Simply invest an amount you find suitable and participate in the company’s performance.

In order to offer you the convenience of fractional stocks and ETFs however, we had to structure the product in a specific way. Your investment is enabled through a derivative contract which tracks the performance of the underlying security - you are not directly investing in the stock or ETF. You can find more information on this topic here.

Keep in mind

Bitpanda Stocks enables you to make fractional investments. To allow for this, Bitpanda issues a derivative contract which is backed by the underlying stock or ETF. You can read more about this here.