Dubai-based brokerage XTB has expanded investment opportunities for its clients in the United Arab Emirates (UAE) by opening access to fractional share trading.
The launch of fractional share trading validates XTB MENA's strategic initiative to optimize its portfolio and also contributes to the democratization of capital markets.
Traditionally inaccessible due to high costs, shares of large companies such as Netflix or Meta are now available to investors with small capital. This solution allows even small amounts to be invested, facilitating a sound investment strategy characterized by improved diversification, according to Zawya.
"With fractional shares, we are removing the barriers that have prevented many of our clients in the Middle East from participating in the stock market," said Achraf Drid, CEO of XTB Middle East and North Africa.
"We are committed to fostering an equity culture where retail investors, regardless of their portfolio size, can participate in companies they believe have significant potential," he added.
It is worth noting that XTB's fractional shares are unique in that they represent real share ownership rather than synthetic products. This means that investors are entitled to pro-rata dividend payments on the fractional shares they hold. The fractional portion not owned by the investor is retained by XTB. With a minimum transaction value of €10, investors can purchase fractional shares, which represent fiduciary rights to a portion of shares or ETFs listed on regulated markets.
The broker also charges no fee on fractional share transactions, provided they do not exceed a monthly limit of €100,000.
The launch of XTB fractional shares in the UAE is a natural extension following its debut in Romania earlier this year and subsequent launches in Spain, Poland, and the UK.
Providing new opportunities for investors in the UAE is also in line with broader financial inclusion objectives. With the introduction of fractional shares, XTB also underscores the platform's commitment to promoting affordable and diversified participation in the capital markets.
Read also: Bitget sees 82% increase in spot trading volumes in November.
