Charles Schwab Democratizes US Investing for UK Retail Investors

Story Highlights

• For $5, UK buyers can purchase fractional shares of US equities from Charles Schwab.
• For a more complete trading platform, Schwab incorporates Ameritrade, adds futures, and offers currency.

Charles Schwab has unveiled a ground-breaking tool called Schwab Stock SlicesTM, which enables ordinary investors in the UK to buy fractional shares of S&P 500 firms. With commission-free online trading and the ability to purchase a stake in a selected firm for as little as $5, this unique product lowers the entry hurdles for investing in expensive equities.

Richard Flynn, UK Managing Director at Charles Schwab, underscored the significance of this move:

“Schwab Stock Slices are designed to make it much more affordable for UK retail investors to expand their investment options in the US market. We believe our platform provides one of the most affordable and insightful ways to invest in American businesses.”

The service’s customizability is a standout feature, empowering investors to choose up to 30 slices per order, tailoring their portfolios to their specific goals and preferences.

Expanding Horizons: Futures, Forex, and Integration

Schwab’s commitment to democratizing investing doesn’t stop at fractional shares. In April, the company expanded its trading services by integrating futures and forex trading capabilities into its thinkorswim platform. This addition caters to sophisticated traders seeking advanced risk management tools and leverage options, solidifying Schwab’s position as a comprehensive financial services provider.

As part of the broader strategy to integrate Ameritrade’s capabilities into its offerings, Schwab introduced more than 65 tradable currency pairs and futures trading previously available only on its StreetSmart platforms. This move aligns with the company’s goal of delivering a unified and enhanced trading experience for all its clients.

By May, all Ameritrade clients should have switched to the Schwab platform since the integration of Ameritrade’s capabilities into Schwab’s services is almost complete. Schwab provides novice traders with an opportunity to become familiar with the tools and tactics used in these markets through the paperMoney® simulated trading environment, which helps to ensure a seamless transition.

Focusing on accessibility and innovation, Charles Schwab is changing the face of investing by enabling UK investors to take advantage of the enormous potential of the US market and providing advanced tools for seasoned traders. Schwab’s dedication to servicing clients at all levels and promoting a diverse and inclusive investing community is exemplified by this multidimensional approach.