Press release: The growing interest in investments, driven by technological progress and the economic situation, is forcing more and more people to engage in the capital market. XTB statistics indicate the continued popularity of the traditional stock market among investors. However, it is important to realize that the stock exchange has its entry barriers. XTB is introducing changes that will make investing more accessible.
When following current trends, one can notice that investing is becoming more and more widespread. Individual data confirm that, among other things, the number of brokerage accounts is also growing. The pace of interest in own capital allocation has particularly increased in recent years. As XTB data shows, one of the key areas of interest for investors is the capital market.
ProWhy this interest in stocks and ETFs? This phenomenon can be explained by three main factors – globalization, the development of digital technologies and the desire to protect capital from adverse economic conditions, influenced by factors such as pandemics and high inflation. Today, those who want to test their skills as individual investors have access to the most important capital markets in the world directly from their smartphones. However, it is necessary to realize that entering the stock market is not always easy.
Investments more affordable than ever before
Among the entry barriers for individual investors who want to start their adventure in the stock market, two factors are most often highlighted. The first is knowledge and the second is the capital needed to build a balanced investment portfolio. ProXTB is trying to overcome these obstacles minimalize. The investment platform has been known for years for offering its clients free financial education, providing up-to-date market data, organizing live meetings with analysts and educational conferences – the Online Investment Conference and the Online Trading Conference. In this way, the fintech ensures that investors using the platform are adequately prepared to invest their savings.
Now it will be miniAnother barrier, which was the lack of adequate capital, has been eliminated. XTB is introducing a new product to its offer – Fractional Shares. From April 24, investors in the Czech Republic and Slovakia do not have to buy a whole share (one share), but can invest in a part of a share, starting from 10 euros. Investors will thus be able to build their investment portfolios in a more affordable way. In addition, it should be emphasized that Czechs and Slovaks will have the opportunity to get acquainted with this new functionality from XTB among the first.
– The introduction of Fractional Shares opens up new possibilities for investors and plays an important role in building an investment portfolio. On the one hand, Fractional shares lower the entry barrier for those who are just starting their investment journey. On the other hand, it serves as an important tool enabling proper balancing and diversification of investments for more experienced market participants. It is this accessibility that makes the capital market more open than ever before. We are proud to be part of this transformation - says Omar Arnaout, CEO of XTB.
Fractional shares offer new possibilities
Investing in the stock market has so far encountered numerous limitations, especially when it comes to building an investment portfolio. Many attractive companies such as Mastercard, Microsoft, Meta Platforms or Apple had too high a nominal share price for many investors. Fractional shares make these companies accessible to virtually everyone.
Fractional shares simply and effectively eliminate the need to buy the entire share at once. And how exactly does it work? If the nominal price of the share is too expensive for you, you can buy Fractional Shares with XTB, which represent trust rights to a part of a share or ETF listed on regulated markets. This allows you to start investing with a small amount, for example 10 euros. By investing in Fractional Shares, investors also receive a proportional share of economic benefits, such as dividends.
It is also worth noting that Fractional shares of the same company are added together within one investment portfolio. When the sum of Fractional Shares reaches the total value of one share, the investor becomes the rightful owner of one share of the company.
