Schwab Stock Slices Coming Soon

[gwraigty]

This seems to be a little different than plain vanilla fractional share trading.

https://www.schwab.com/stock-slices

Stock Slices is an easy way to buy fractional shares for a set dollar amount. You have the option to buy shares in up to 10 top U.S. companies. The stocks you purchase through Schwab Stock Slices will be individual stocks in your account that you can hold and sell independently.

The stocks available for purchase through Schwab Stock Slices are those in the S&P 500® Index (S&P 500),

 

[Sunset]

Interesting, it's like building your own ETF.

But thinking on it a little bit, it's not very useful once a person starts thinking in terms of $10K (which is probably why the limit).
Since there are no trading fees, I can buy 1 share apple, 3 shares of netflix, etc... in essence building my own ETF equivalent.

 

[OldShooter]

It's just a way to attract smaller customers, ideally beginning investors who will become comfortable and remain with Schwab as their assets grow. If it is successful, others will follow. For anyone with significant assets (anyone here, probably) it's a don't-care.

 

[gwraigty]

While it may be true that many people on this forum wouldn't care, don't we occasionally get newer, younger members who are early in their journey towards a goal of ER? Some forum members have kids or grandkids that may benefit from this information. That's why I thought it would be helpful to share it, even though it's not something I plan to use either.

 

[OldShooter]

While it may be true that many people on this forum wouldn't care, don't we occasionally get newer, younger members who are early in their journey towards a goal of ER? Some forum members have kids or grandkids that may benefit from this information. That's why I thought it would be helpful to share it, even though it's not something I plan to use either.

Yes, of course. I didn't mean to criticize the posting at all. Sorry if that's how it sounded.

 

[gwraigty]

Yes, of course. I didn't mean to criticize the posting at all. Sorry if that's how it sounded.

All is well.

Something like this might have served me well in my beginning investing days when I kept deluding myself about my stock picking ability.

 

[youbet]

Since there are no trading fees, I can buy 1 share apple, 3 shares of netflix, etc... in essence building my own ETF equivalent.

Actually, you can do that now without the new Stock Slices program.

 

[youbet]

It's just a way to attract smaller customers, ideally beginning investors who will become comfortable and remain with Schwab as their assets grow. If it is successful, others will follow. For anyone with significant assets (anyone here, probably) it's a don't-care.

It's hard to see much use for this new program except perhaps for children. Johnny gets $25 for his birthday and he and grandpa want to put it into 5 different stocks. Now that will be possible.

Or, I guess it might be handy if you wanted to buy a very small amount of an expensive stock just to have it be in your view as you check your statement.

But, not very useful all in all. Even for someone with just a total of a few kilobux invested in the market.

 

[OldShooter]

... Something like this might have served me well in my beginning investing days when I kept deluding myself about my stock picking ability.

Yup. BTDT myself. And I think encouraging that delusion in novice investors is a real downside of this program.

Schwab is a funny place. At the top level "Chuck" recommends index funds but they do a lot to encourage traders, even now when they get no direct fee income from it. I guess they make a little on the cash account balances, where the default is to get bank savings account rates.

 

[brewer12345]

Fantastic. Now a whole new crop of idiot millenials will be throwing their lunch money in and out of the market.

 

[carnivalday]

I will definitely use this new service. I have my Roth IRA with Schwab, and its completely individual stocks, and CEFs. I think theres about 60 different issues. I reinvest the dividends each month by buying a few stocks depending on when their ex date is coming up. Ive got a couple of stocks, NEE and LMT come to mind, that have gotten so expensive that I havent been able to buy more. Now, with this new Stock Slice option, Ill be able to add to them too.

 

[copyright1997reloaded]

Fantastic. Now a whole new crop of idiot millenials will be throwing their lunch money in and out of the market.

I wonder if one can short a slice?

 

[OldShooter]

I wonder if one can short a slice?

Sell naked options!

 

[54andchange]

Thanks for the news. Unlike Fidelity, where one can buy fractional zero cost index funds and enjoy the satisfaction of truly being 100% invested, "Chuck" leaves me with an unsatisfying $1 to $60 or so uninvestable in cash. Now I will be able to put it to work. No more slacker dollars on the payroll.

May seem trivial to some, but for say an IRA you cannot add to nor yet withdraw from for instance, will take dead dollars out of indefinate purgatory cash.