Wombat Invest has launched fractional share-trading in some of the top UK companies from as little as £10, the mobile-only investment app announced. The platform, whose customer base is mostly composed of users aged under 45, offers unlimited commission-free trading to encourage new and small-time investors.
Wombat found 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, commented: “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.
Wombat plans to offer well-known US and European stock later this year as part of its 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 added.
Nearly two-thirds (63%) of Wombat’s 17,000 users are aged under 45, and nearly half (45%) are under 35, according to the mobile platform’s research. Wombat Invest was founded to address the reluctance of those aged 25 to 34 to invest because of the investment process is too complicated. Three quarters (72%) of those respondents said that, according to the firm. The mobile platform was then created to simplify the process as traditional methods of investing can seem complicated, time-consuming, expensive, and are often off-putting for new investors.
Wombat is an Appointed Representative of P1 Investment Management Ltd, who are authorized and regulated by the Financial Conduct Authority. Investors’ money may be protected up to £85,000 by the Financial Services Compensation Scheme (FSCS), which means that in the event Wombat Invest Ltd is declared to be in default and cannot meet their obligations, users may be able to claim compensation.
