WBS' Steve Croucher: Barriers to entry for fractional shares are higher than you think

Risks can 'grow at pace'

HM Revenue & Customs has recently committed to allowing fractional shares to be purchased through an ISA.

The ability to own a fractional share – a share of a share – has significantly lowered barriers to entry for the average retail investor, in particular. They radically democratise the investment landscape, offering theoretically unlimited fractions of higher-priced stocks, enabling investors with even limited capital to own them. For finance professionals, the availability of these partial shares has several upsides: they facilitate more precise asset allocation, support dollar-cost averaging strategies and custom indexing, and make dividend reinvestment more efficient, to name a few....