The Cyprus Securities and Exchange Commission (CySEC) has issued a new Circular to provide guidance on the cases where fractional exposure in shares in companies, would qualify as exposure in Shares.
Fractional shares trading has become a popular offering among CFDs brokers, allowing clients to get exposure to a stock where the stock price is very high. For example, with some equities popular among the retail trader crowd carrying high price levels for just one share, such as Meta (now $568 per share), Apple ($226), or Tesla ($257), fractional shares trading allows a client wishing to invest a smaller amount (say, just $100) to trade a fractional CFD of that share. The overall volume of fractional share trades at CFDs brokers is still quite low, but the product itself has become a popular marketing tool at many brokers.
CySEC said that firms operating under the national laws of Member States of the European Union (‘EU’)…
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