Robinhood Rolls Out Fractional Shares, DRIP, Recurring Investment Features

Robinhood, a retail trading platform that offers investors commission-free stock, ETF, options trading and high-yield savings accounts, has introduced fractional share trading.

“Some stocks and ETFs cost hundreds or thousands of dollars for a single share. This means that many people may not be able to invest in their favorite companies or funds," Robinhood said in a Thursday statement.

Fractional shares allow investors to buy stocks like Amazon Inc. AMZN, Apple Inc. AAPL, Walt Disney Co. DIS, Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) and thousands of others with as little as $1, according to Robinhood. 

This development comes after Robhinood crossed the 10-million account threshold earlier this month.

The firm also announced the support of Dividend Reinvestment Plans (DRIP) and Recurring Investments, allowing traders the ability to automatically reinvest dividends back into the market and schedule recurring investments.

“Pioneering commission-free investing was only the beginning. We believe that fractional share trading will open up investing to even more people, and we’ll continue to find ways to democratize the financial system so everyone can participate," according to the company. 

Photo courtesy of Robinhood. 

Posted In: FintechNewsRobinhood
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!
fintech-banner
Fintech Focus Newsletter

Your update on what’s going on in the Fintech space. Keep up-to-date with news, valuations, mergers, funding, and events. Sign up today!


Loading...