ABN AMRO has created its own infrastructure for business clients to allow fractional investing by their end clients.
Fractional investing is a method of investing in part of a share, instead of needing to buy a full share.
Neobroker BUX has become the firm’s first client to use the new feature which is available on the BUX Zero trading app, allowing clients to use their accounts to buy and sell full shares and fractional shares.
An innovative cloud-based administration system keeps meticulous track of what fractional purchases an investor has made, without ABN AMRO needing to buy more than one additional full share per fund.
Due to its popularity within the US and a growing presence in Europe, ABN AMRO Clearing began to develop the infrastructure 18 months ago and aims to make fractional trade possible for European shares in the near future.
Rutger Schellens, CEO of ABN AMRO Clearing says: “We are active in the business-to-business segment and offer services to retail brokers such as BUX. These innovations help us to retain clients and further boost our impact and income.”
Yorick Naeff, CEO at BUX adds: “The launch of fractional investing marks an important new chapter in the normalisation of investing in Europe. As the first Dutch broker to offer fractional investing in individual stocks to retail investors, BUX continues to lead the evolution of neobrokerage in Europe.”
