Robinhood Announces Introduction of Fractional Stock Trading

In the past few months, the investment app Robinhood has certainly seen its share of ups and down. Nevertheless the company has continued to not only push forward but also bring new features to its platform. On that note, the FinTech has just revealed that it will soon give users a new way to invest.

Today Robinhood announced that it would be adding fractional stock trading to its platform. As they explain, this feature will allow investors to purchase stakes in companies such as Amazon, Apple, and “thousands of others” for as little as $1. Currently the company says it intends to launch this capability starting next week and is inviting users to sign-up for early access.

The addition of fractional shares to the Robinhood platform is far from surprising. In fact one could argue that the app is a bit late to the party as newcomers such as SoFi Invest and others have already beaten them to the punch. However, in the specific case of SoFi, that company notes that they only place fractional share orders once per day. Meanwhile Robinhood states that their orders will still be made in real-time.

While this new functionality was the headlining feature of a new blog post from Robinhood, it wasn’t the only one announced. The FinTech also teased support for a Dividend Reinvestment Plan (DRIP) that will allow users to automatically reinvest dividends they might earn from company stocks and ETFs. Additionally the app plans to add the ability to schedule Recurring Investments.

Word of these new features comes as Robinhood is in the process of rolling out its cash management account at long last. Of course it also comes on the heels of several discount brokerages following Robinhood’s lead and cutting their trade commissions to $0. Elsewhere the FinTech recently announced that they would be making their way to the United Kingdom — a country where nothing newsworthy happened this week.

Ultimately, even if Robinhood isn’t the first to make fractional shares available to newbie investors, adding the feature to their platform does make a lot of sense. Despite some of the troubles of the app has seen in the past year, there’s no question that it remains a powerhouse for bringing new and different investors to the market. Thus this latest addition only promises to keep that rolling and hopefully give Robinhood a bullseye it could really use.


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Marqeta Expands Credit Program with New APIs and More

A FinTech that specializes in creating credit card experiences is rolling out some new features. This week, Marqeta announced what it calls a "significant expansion" of its credit platform. This includes more than 40 new credit APIs that will further help clients craft and launch their own credit card products. Additionally, the company notes an updated intuitive dashboard. Using this platform, businesses can create unique card options that can not...

PayPal Launches Small Business Credit Card with Flat 2% Cashback

The popular platform PayPal is rolling out a new product built specifically for small businesses. Today, the FinTech announced the launch of The PayPal Business Cashback Mastercard. The new card will be issued by WebBank and marks the first time PayPal has offered a business credit card. With the PayPal Business Cashback card, business owners will be able to earn 2% cashback on all purchases. This earning rate is not...

Wells Fargo Unveils New Autograph Rewards Visa Card

A new rewards credit card is on the way from Wells Fargo. Today, the bank introduced its Autograph card, which expands the company's refreshed card portfolio. In terms of rewards, the Wells Fargo Autograph Card will earn 3 points per dollar spent in a number of categories. These include restaurants, travel and transit, gas stations, select streaming services, and phone plans. All other purchases will earn 1x points. Beyond the...