Public.com launches Fractional Bond: Breaking Barriers

Public.com launches Fractional Bond Trading service to enhance accessibility for investors by offering corporate and Treasury bonds. Public.com has introduced fractional bond trading, enabling investors to trade corporate and Treasury bonds in smaller increments. Pioneering real-time fractional trading for stocks, the company extends this innovation to the debt securities realm, allowing users to invest in bonds for as little as $100, substantially reducing the usual minimum investment thresholds in the bond market.

Public.com Launches Fractional Bond: Enhanced Investor Accessibility

At present, Public.com provides a collection of more than 100 fractional bonds on its platform, with intentions to broaden the assortment in the coming times. Equipped with an array of tools, the platform aids investors in maneuvering through the bond market, including AI-driven bond search, a screener, and comprehensive bond information pages furnishing essential financial metrics for corporate bonds. Public.com has additionally implemented a liquidity rating ranging from 1 to 5 for all bonds listed on the platform, with fractional bonds securing the highest score of 5, denoting superior liquidity in contrast to other available bonds.

In order to bolster investor confidence and knowledge in bond investing, Public.com has curated educational resources, including a dedicated center providing insights into bond fundamentals and strategies, along with a podcast addressing macroeconomic news impacting bond markets. Public.com advocates for capital allocation towards fractional bonds, citing a Bloomberg article from March which suggests that investing in corporate bonds currently offers the highest level of safety in nearly a decade.

Revolutionizing Bond Investing?

The advent of fractional bond trading coincides with improving corporate debt ratios and anticipated interest rate cuts later in the year, sparking heightened investor interest in the bond market. Public.com’s aim is to enhance accessibility to fixed-income securities for a wider investor base by enabling purchases of bonds in smaller, whole-dollar amounts.

Traditionally, retail investors have encountered numerous hurdles when delving into bond investments, including the absence of mobile-friendly platforms, high minimum order quantities, restricted liquidity, and challenges accessing pertinent data for making informed decisions. Public.com’s fractional bond trading endeavors to alleviate these challenges by offering a user-friendly, mobile-optimized platform that prioritizes ease of use and discoverability.

In 2023, the US-based zero-commission stock trading platform, valued at $1.2 billion and headquartered in New York, sought expansion into Europe. Despite unsuccessful negotiations to acquire Dutch competitor Bux, the company explored potential European acquisitions. This strategic move culminated in an announcement in July 2023, signaling Public.com’s entry into the United Kingdom, marking its inaugural venture into international markets.

However, it soon became evident that sustaining a foothold in the fiercely competitive UK market would pose challenges, prompting the company’s decision to withdraw just eight months after its launch. The situation was compounded by the recent entry of Robinhood into the local market, further escalating competitive pressures.

A spokesperson for Public.com affirmed, “with even more accelerated growth in the US, particularly from recent feature launches such as a five percent high-yield account, corporate bonds, and options trading, we decided it’s better to focus on our US business for now.”

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