Interactive
Brokers (NASDAQ: IBKR), an automated global electronic broker, is set to
enhance the number of offered markets. As part of its latest update, the
platform will provide its clients access to shares trading on Nasdaq
Copenhagen (CPH) and the Prague Stock Exchange (PSE). As well as that, eligible Nasdaq
Copenhagen shares will be available for fractional trading.
Interactive Brokers Adds
New European Exchanges
Interactive
Brokers serves a diverse clientele spanning more than 200 countries and territories.
Currently, it is offering access to over 150 markets worldwide. With the
introduction of Danish and Czech stocks, clients have even more investment
options.
“Clients
seeking to diversify and take advantage of new trading opportunities across
geographies in Europe and around the world, can now add Danish and Czech stocks
to their portfolios while benefiting from Interactive Brokers’ low costs and
the ability to trade products across asset classes from a single unified
platform,” Milan Galik, the Chief Executive Officer of Interactive Brokers,
commented.
According
to Galik, the addition of the two new markets from the Old Continent reinforces
the company’s commitment to providing clients with a wide range of investment
products.
Regarding
trading costs, commission on Danish stocks ranges from 0.015% to 0.05% of the trade
value, with a DKK 10.00 minimum per order for tiered pricing based on monthly
volume. Fixed pricing has a 0.05% of trade value with a DKK 49.00 minimum per
order. As for Czech stocks, the fixed commission is set at 0.15% of the trade value
with a CZK 70 minimum per order.
Currently, Interactive
Brokers offers stocks and ETFs from 20 European countries, including
Germany, the UK, Poland, France, Hungary, Spain and Sweden.
Interactive Brokers
Expands Fractional Share Offering
Additionally,
clients can fund and trade accounts in up to 26 currencies, including the
Danish Krone (DKK) and Czech Koruna (CZK). In the case of Danish stocks,
investors were given the option to purchase only fractions of whole
shares. The broker first introduced this option before the pandemic, while it
has been available in the European market for a year.
“Interactive
Brokers was the first big broker to introduce fractional trading in US shares
and it’s been very popular with our clients,” Steve Sanders, the EVP of
Marketing and Product Development at Interactive Brokers commented in May 2022.
“Adding European fractional shares gives investors the opportunity to trade
across markets in a more affordable way, in addition to the benefit of
investing in more stocks to help clients achieve diversified portfolios.”
Interactive
Brokers has been offering fractional shares since November 2019. It was one of
the first major retail brokers in the US, right after Charles Schwab, to make
such a move. The brokerage opened a new office in Ireland last year to strengthen its local presence.
New Products and Rising
Number of Clients
The popular
American electronic trading platformrecently reported
month-over-month (MoM) single-digit growth in its daily average revenue trades (DARTs) and
client accounts. While DARTs grew 5% to 1.86 million, the platform’s client
accounts rose 2% to 2.26 million in May.
The rising
number of clients and DARTs was possible due to the offering which is constantly developing, including the recent launch of crypto trading services in Hong Kong. The
addition of digital assets occurred along with growing interest among the broker’s
clients.
In February
2023, IBKR presented a brand new instrument dubbed the Stock Yield Enhancement
Program (SYEP) Derivatives for traders and investors from Australia. It offers
the opportunity to loan stock shares in exchange for cash collateral deposits
that mirror the potential earnings from lending out shares.
This article was written by Damian Chmiel at www.financemagnates.com.
