‘Fractional Shares’ (A.K.A. Dollar-Based Investing) In The Likes Of Amazon Is A Wonderful Innovation.
Great innovation and I applaud the financial institutions, like ‘my’ Fidelity, scrambling to make it a reality, pronto. No, I am not in need of fractional shares. SMILE. At 66, after 40-years of active, non-stop investing (i.e., I have always been in the market, without fail) I can afford to buy full shares of stock I want and even maybe in the ‘customary’ blocks of 100.
I am happy for ‘kids’, new comers and those that missed out on the likes of AMZN when they used to be cheap. I am a great believer and advocate in investing. I encourage kids to invest and tell parents to get their kids invested. Yes, my kids are invested. SMILE.
Fractional shares are a GREAT. Love the concept.
40-years ago, in the U.K., I got started in UNIT trusts. Bit like mutuals, but if I remember right, with no minimums. You bought units.
Yes, of course, you can buy into the likes of Amazon, Google and Netflix, by investing in the right mutual funds or ETFs. But, it is not the same as having a skin in an actual SHARE of stock. Gives own a sense of ownership. I love owning Amazon. When I buy from Amazon, it is like buying from my own store! SMILE.
I hope a lot of ‘kids’ — even those in their 20s — gainfully exploit this opportunity.
It is also good for us shareholders. SMILE. GRIN. It will drive up share prices. SMILE.
I hope fractional shares are NOT going to be restricted just to mobile APP transactions. That would be stupid. I should be able to buy fractional shares on the Web.
I checked my Fidelity APP. Couldn’t see fractional shares on it. I am going to call them up tomorrow. I will let you know.
I got three of these!
I called Synchrony Bank. Multiple attempts. There phone lines are ‘down’.
They confirmed that this was an ERROR.
I should not have got these e-mails.
So, IF you were NOT expecting these, IGNORE and get on with life.
Hope that helps.
Search on ‘Synchrony’.
Yes, I am an frequent, avid and compulsive trader. Yes, I did three four trades today. Fidelity has me ranked and classed as an ‘Active Trader’ in that, per their records, I do more than 150 trades a year. BUT, I would be FINE, just fine if the stock markets were closed on Veterans Day. There is no need for them to be open. The global financial world would NOT crumble if the NYSE & NASDAQ were closed for two days in November — the other, of course, being Thanksgiving.
I am surprised that this has not been dealt with before. Time for this to end.
With online trading commissions are NOT what they used to be. Yes, I remember having to pay $70 to $80 per trade. That gave you pause, but again, in the end you were hoping to make thousands so even $80 would be a rounding error.
Then, with online trading, it became … $14.xx … $7.95 … and now $4.98.
I am HAPPY to give Fidelity $4.98 per trade, for all the services I get.
I will also, happily, make two concessions as to when a trade should/could be free.
- I am a great believer in kids getting into stock (and I have had lot of success with this, even helping kids who are not mine). So, I am all in favor that kids should be allowed to trade for free. Basically make UTMA (or equivalent) accounts — i.e., accounts involving those under 18 — commission free. That will be a winner.
- Also give those making ‘small’ trades a break. But, since folks invariably will try and abuse this, since folks are cheap, it will have to be restricted to one free trade a day. So, something like one $1,000 (or less) trade per day free, or one trade (per day) involving 30 shares or less.
So, why am I opposed to free trading. Because, I am old & savvy enough to know that there are NO free lunches. When brokerage house offer free trading they are going to be loosing millions if not billions in income! True statement. So, how are they going to make up for that.
First they will cut services. Yes, good folks will lose jobs. It will also mean that you will not be able to talk to a human. So, the elimination of services is my greatest fear. I get outstanding service from Fidelity. I would hate to see that not be the case.
Second, they are going to start hounding you to sell you services. You will get even more calls and e-mails offering this and that. They have to recoup the money they are losing. It will be ugly. To be honest it will not affect I! Fidelity, quite a long time ago, stopped trying to sell me anything. They know — and they can see — that I do very well on my own. So, they stopped calling me. But, it won’t stop them calling YOU.
There is another reason too. It will just further encourage foolish, mindless trading! I really hate that. Folks that buy and sell with no rhyme or reason. Panic and sell when the market is going down and then turning around buying the same stock when the market has gone up. They could save themselves so much money buy just buying and holding. My core stock portfolio has not changed since 2012. 7-years. SMILE. Yes, I have held the same stock for 7-years. SMILE.
So, that is my piece on this.