Starting December 16, Robinhood, the operator of the mobile application for trading stocks and cryptocurrencies, will provide users the possibility of fractional purchase of shares of popular companies and ETFs.
Shares will be purchased in real time without commissions. According to company executives, this will help increase the user base by democratizing access to the stock market.
A similar service has already been launched by fintech startup Jack Dorsey Square, which supports bitcoin trading, and the British Revolut.
After the announcement in just a day, the company received 200 thousand applications from users for access to fractional trading.
Early next year, Robinhood will allowautomatically reinvest in dividends that users receive as part of the Cash Management program. Its essence is the accrual of interest (annual rate - 1.80%) on unused funds in a brokerage account.
The application will also open the possibility of planning your investment for a specific time or period.
The number of Robinhood users recently crossed the mark of 10 million accounts, and the company itself is estimated at $ 7.6 billion.
Recall that Robinhood received BitLicense in New York and a broker license in the UK.