Wombat Invest, the mobile-only investment app, has launched fractional share-trading in some of the top UK companies from as little as £10.
The London-based fintech is offering fractional shares with unlimited commission-free trading to encourage new and small-time investors.
Nearly two-thirds (63%) of Wombat’s 17,000 users are aged under 45 and nearly half (45%) are under 35. Wombat’s research shows that younger and less experienced investors often want to invest regular, round sums, rather than having to think about multiples of individual share prices.
As a result, it is now offering fractional shares in some of the well-known FTSE100 and FTSE250 companies, including Vodafone, Burberry, GlaxoSmithKline and Ocado.
Kane Harrison, founder and CEO of Wombat, said: “By offering fractional shares to our users, we’re enabling access to companies that they may not be able to afford using traditional investment platforms. It also demystifies the trading process”
“Wombat allows users to start small and build a diversified portfolio with manageable amounts they can afford. Users can automate their investments to repeat monthly and take a more long term, set-and-forget approach”
Harrison added that Wombat had hand-picked the most well-known British brands to be in its first tranche of equities because users would be more likely to understand the businesses in which they were investing. Wombat plans to offer well-known US and European stock later this year as part of their big roadmap.
“Our users will soon be able to invest in brands like Tesla, Google or Amazon, whose individual shares are priced in the hundreds or even thousands of dollars - for as little as £10,” Harrison said.