What the heck is Fractional Trading, anyway?
What is Fractional Trading and how does it work?
Normally when you buy shares, you buy whole shares and one share would be the minimum amount you could purchase. The price of a single share can sometimes be more than a set of Apple AirPods, which for many of us is an impossible Walter Mitty-style daydream. So if your budget is more minor players than major players, Fractional Trading can give you access to shares that would otherwise be out of reach. By buying part (i.e. a fraction) of a share, crypto, or ETF, you can still invest in high value shares, just at a smaller scale. Your ‘fraction’ of a share will still rise (yay!) and fall (oh no) in value, just as a full share would.
5 reasons why Fractional Trading is your new best friend
1. It’s accessible and affordable for all investors, whether you’re a newbie or a pro
In the same way that retail giant Amazon reinvented shopping with quick, cheap and easy delivery of goods right into their customers’ waiting hands, Fractional Trading gives investors instant, effortless and affordable access to the big brands at lower prices. The average price of a share in Amazon is more than 3000 USD. Want to be an Amazon investor but have blown your budget on buying stuff from, um, Amazon? (No judgement from us.) Fractional Trading gives you the financial freedom to invest within your means while still growing your portfolio.
How Yuh Helps: With Yuh, you can start Fractional Trading from just 25 CHF. The only tricky bit is deciding who to invest in, which brings us to …
2. You can choose who you invest with based on your passions, not the pricetag.
Fractional Trading allows feelings and finance to meet. Let’s say you care deeply about sustainability, have done your research, and you’ve decided that electric cars are the future. You look through the company names in that sector, and Tesla gets your money motor revving. But – ouch, the price for a single share (on average, over 1000 USD) is beyond your budget. However, with Fractional Trading, you can still have the climate-friendly kudos of being an investor in Tesla: set your budget and grab a fraction of a share.
How Yuh Helps: Yuh has over 200 shares, cryptos or ETFs to invest in so you’re sure to find something that suits you, but if you’re still a bit stuck, try our Themes Trading - a portfolio grouped by interests or sectors – to help you pick.
3. You can easily diversify your portfolio with a moderate investment.
We’ve covered the ‘moderate investment’ part in point 1, but the real beauty of Fractional Trading is how easy it is to diversify your portfolio, which is essential as it helps manage risk and leverage the best performance. Simply set your budget, choose the companies and the type of investments you want to make, then divide your budget between them. If you’re interested in fashion, for example, you can zero in on high-value assets in LVMH (the giant behind luxury clothing brands), Adidas and more. You’ve now invested in multiple companies and assets, effortlessly.
How Yuh Helps: Did we mention Yuh offers over 200 shares, cryptos or ETFs to choose from? And here’s a tip: we know our Yuhsers have hectic lives, so if you want to keep track of your portfolio on the go, we recommend investing nice round and even amounts – so when they go up or down, the trend is easy to spot at a quick glance.
4. Get fractional dividends, exactly as you would for a full share.
Fractional Trading really is the bee’s knees, giving you all the benefits of trading in full – including dividends. There’s no penalty for trading in fractions, and dividends will be equal to the fraction of the stock owned (for example if you own 0.5 or half of a share, you’ll get 50% of the dividend).
How Yuh Helps: Yuh’s user-friendly interface makes it simple to see your investment progress at a glance.
5. Place fractional share orders in real time.
As with full shares, Fractional Trading orders can be executed immediately, instead of twiddling your thumbs and waiting impatiently for orders to be confirmed at the end of the day. So tune up your savvy investor sense, and when you feel the time is right: pounce!
How Yuh Helps: Once your order is executed, sit back, relax and track your performance immediately with the easy to use Yuh app on the go.
You probably already know this, but …
Yuh is a 3-in-1 money management app designed to help you save, spend and invest with ease. Our shiny NEW Fractional Trading feature makes investment accessible, affordable and (dare we say) fun, enabling our Yuhsers to join the big leagues. See what all the fuss is about and download Yuh today!
Company names used in this article are examples only – Yuh does not endorse or recommend any specific companies for investment purposes.