Online investment manager Moneyfarm is looking at offering fractional dealing for its exchange-traded funds in a move to rival robo-adviser Nutmeg’s launch earlier this year.
Fractional share trading enables platforms to buy just a small proportion of an ETF costing as little as one penny rather than whole shares that could cost up to £100 each.
Moneyfarm, which launched in the UK in February, has six portfolios made up of ETFs only.
Products are fee and commission free for the first £10,000 invested and for savings over £1m.
Moneyfarm head of asset allocation Marco Jean Aboav says: “We are thinking about it. We don’t have a timeline yet but it is an interesting solution for micro investments.
“However, we think our platform can already offer a solution for small savers.
“There are some technological aspects to consider, but since we are mainly a technology business things could speed up according to opportunities in the short to medium term.”
Technology provider Winterflood Business Services also introduced fractional dealing in July after Nutmeg rolled it out in March.
In November, Novia Financial also confirmed it will offer fractional dealing for ETFs on its discretionary service Copia Capital Management by the end of the year.