XTB Introduces Fractional Shares in the UAE

The Dubai arm of XTB's online trading platform has introduced fractional shares trading for investors in the UAE, expanding the offering that debuted earlier this year in various countries.

This extension allows investors to own fractions of shares, offering entitlement to proportional dividends, with a minimum transaction value of EUR 10. Notably, there are no commissions for fractional share trades within a monthly limit of EUR 100,000.

CEO of XTB MENA, Achraf Drid, emphasized that fractional shares eliminate barriers preventing some Middle Eastern customers from investing in stocks. He envisions a culture where investors, regardless of portfolio size, can engage in companies they believe hold potential.

Previously, sky-high share prices barred UAE investors from certain stocks; for instance, Berkshire Hathaway's Class A shares priced over $542,500 per share. Fractional shares now allow investment in these companies at a fraction of the cost.

XTB's launch aligns with their aim of fostering financial inclusion, aiming to enable accessible and diversified participation in capital markets, as mentioned in their official release.

Since its establishment in October 2021, XTB MENA expanded offerings from FX/CFD instruments to cryptocurrencies and, in 2023, to stocks.

The move to introduce fractional shares in the UAE echoes its success in other regions. Debuting in Romania earlier in the year, it progressed to Spain, Poland, and the United Kingdom.

In a bid to attract new clientele, XTB ventured into passive products, initiating ETF-based “Investment Plans” in September, promoting long-term investing.

Their latest addition, offering interest on idle client deposits, was announced in early November, contributing to the popularity of their brokerage services.

This diversification has notably impacted XTB's growth, propelling them to surpass 200,000 users in Poland, solidifying their position as the third-largest brokerage firm in the country and increasing their global client count to nearly 850,000, as per Finance Magnates' November report.