After slashing commissions, Schwab's bid to compete for the millennial investor has invsted with fractional shares. The feature could help investors by a portion of a highly priced stock, making ownership of companies like Amazon (over $1.7k per share) more accessible.
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Schwab, in Bid for Younger Clients, to Allow Investors to Buy and Sell Fractions of Stocks
“I wanted to take commissions out of the formula,” Mr. Schwab said. “We’ve been on that path for 40 years,” he said, reflecting back on the company’s start as one of the first discount brokerages. Now, Mr. Schwab said the company is focusing on efforts to expand access to investing, particularly to young people. Schwab’s decision to scrap trading commissions followed a similar move by Interactive Brokers Group Inc., IBKR -2.36% and it prompted rivals TD Ameritrade Holding Corp. and E*Trade Financial Corp. to swiftly match.
