Starting today, investors can use the new service to purchase a single stock slice or up to 10 different Stock Slices at once.
Charles Schwab today announces client availability of Schwab Stock Slices™, a new service that lets investors own stocks of any of the companies in the S&P 500 for as little as $5 each, even if their shares cost more.
Starting today, investors can use the new service, which Schwab pre-announced in May, to purchase a single stock slice or up to 10 different Stock Slices at once, and they can hold slices of as many S&P 500 companies in their portfolio as they wish through multiple purchases. Schwab Stock Slices are purchased just like regular stock trades at Schwab.
Schwab Stock Slices will give investors the opportunity to build a portfolio of stocks for a small fraction of what the total price would be otherwise.
Once someone selects the single stock or collection of stocks they want to purchase, the total dollar amount invested is split evenly across each stock, and slices of shares can be as narrow as four decimal places. For instance, a $50 investment across five stocks would generally appear as a $10 purchase of each stock, and the order would show the number of shares or fraction of shares that $10 would buy based on stock prices at the time of execution.
When a trade order is executed via Schwab Stock Slices, each stock fraction appears in a client’s brokerage account. Schwab Stock Slices is available in retail Schwab brokerage, custodial, and individual retirement accounts (IRAs). Schwab clients also have access to a range of educational resources and research including stock screeners and Schwab Equity Ratings, the firm’s proprietary method for rating stock performance.
Schwab custodial accounts are eligible too. Once a Schwab custodial account is open and funded, the custodian can purchase stocks in small dollar amounts in the same way they would in a traditional brokerage account.