Saxo Bank Expands Access with Fractional Shares in Singapore

Saxo Bank Expands Access by introducing fractional shares in Singapore, making investing more affordable and flexible. The Bank has rolled out fractional trading for its clients in Singapore, enabling access to a broader range of instruments across various asset classes via its brokerage platform.

Saxo Bank Expands Access to High-Priced Stocks

Fractional shares enable investors to buy a portion of a stock using any available capital, easing the entry into the markets. For instance, if Apple shares are priced at $200 and an investor has only $100, they can still buy $100 worth of Apple stock, effectively owning half a share.
“This allows clients to invest in high-priced stocks with a smaller amount of capital,” Saxo stated.
“Also, by investing precise amounts, investors are better able to fully utilise all available funds,” the bank added. “Overall, this offers clients more flexibility, allowing them to construct portfolios that fit different budgets.”

Growing Trend Among Brokers

Though not a novel concept, fractional share trading has gained substantial traction in recent years. Many brokers now provide the option to retail traders, making the markets more accessible.
This rising interest has also caught the eye of global regulators. In 2023, the Financial Industry Regulatory Authority (FINRA) in the U.S. issued new rules requiring the reporting of both whole and fractional share amounts.
Likewise, the Cyprus Securities and Exchange Commission (CySEC) clarified conditions under which fractional shares are considered direct ownership under MiFID II.

Update on Saxo’s Ownership Structure

In parallel, Saxo Bank is undergoing a change in ownership. Earlier this year, Swiss private bank J. Safra Sarasin agreed to acquire a 70% stake in Saxo Bank for approximately €1.1 billion ($1.19 billion), putting the company’s total valuation at about €1.6 billion.
However, as part of the deal, Sarasin will buy out Mandatum’s 19.8% share and the 49.9% held by Chinese automotive firm Geely. Saxo’s founder and CEO, Kim Fournais, will maintain his 28% stake and continue leading the company as CEO.

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