Saxo Bank Launches Fractional Share Trading in Singapore

Saxo Bank launches fractional share trading in Singapore, enabling investors to buy partial shares across 1,000+ instruments.

Key Points:

• Saxo Bank introduces fractional trading in Singapore, lowering investment barriers for retail clients.
• The launch follows major ownership changes, with J. Safra Sarasin acquiring a 70% stake in the bank.

Saxo Bank has rolled out fractional share trading for its clients in Singapore, marking a significant step in its push to democratize access to financial markets. The new service allows investors in the city-state to purchase fractions of shares across more than 1,000 instruments spanning multiple asset classes.

Saxo Bank Launches Fractional Share Trading in Singapore

The introduction of fractional trading means investors can now buy portions of high-priced stocks with as little capital as they choose. For example, someone with $100 can now purchase half a share of a company like Apple if the stock trades at $200.

“This allows clients to invest in high-priced stocks with a smaller amount of capital,” Saxo Bank explained in a statement. “Also, by investing precise amounts, investors are better able to fully utilise all available funds. Overall, this offers clients more flexibility, allowing them to construct portfolios that fit different budgets.”

Fractional share trading has surged in popularity over the past few years, particularly among retail investors looking to access large-cap stocks without making substantial initial investments. Saxo joins several other brokers in Singapore and globally that have embraced the model.

Regulators worldwide have also begun to respond to the growth of the sector. In the United States, the Financial Industry Regulatory Authority (FINRA) has introduced new rules requiring detailed reporting of both whole and fractional share quantities. Furthermore, the Cyprus Securities and Exchange Commission (CySEC) has issued guidance on how such investments qualify as direct share ownership under the EU’s MiFID II framework.

Strategic Expansion Amid Ownership Changes

The launch in Singapore comes at a time of significant transition for Saxo Bank. Earlier this year, Swiss private banking group J. Safra Sarasin announced plans to acquire a controlling 70% stake in Saxo Bank. Moreover, the €1.1 billion ($1.19 billion) deal values the online trading firm at around €1.6 billion.

So, as part of the agreement, J. Safra Sarasin will acquire the 19.8% stake currently held by Finnish financial services company Mandatum and the 49.9% stake owned by Chinese automotive group Geely. Saxo Bank’s Founder and CEO, Kim Fournais, will maintain his 28% stake and continue to lead the company.

Retail Investment on the Rise

Saxo’s move reflects a broader trend as investment platforms across Asia seek to make financial markets more accessible. By lowering the capital requirements for entry, fractional trading is empowering a new generation of retail investors who are more informed, tech-savvy, and budget-conscious.

As the competitive landscape continues to evolve, Saxo’s Singapore launch places it in a strong position to capture market share in one of Asia’s most dynamic financial hubs.

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