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What’s the nature of fractional instruments?
What’s the nature of fractional instruments?
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Written by François
Updated over a week ago

Fractional shares, fractional coins, fractional precious metals are one-to-one bilateral agreements (so-called OTC derivatives) with shares, ETFs, SPACs (available only for our Prime customers), cryptocurrencies, or physical precious metals as underlying assets. That means that the value of the Fractional Instrument always directly reflects the price development of the underlying asset on the related exchange (for precious metals it’s specifically the Loco London Precious Metals Market). You can invest in fractions of a whole unit of any offered asset in our catalogue.

For example, if an underlying stock or any other instrument has a current market price of €100, the price of the fractional share or another relevant fractional instrument on that stock or another asset, will also be €100.

You can decide which fraction of the underlying stock or instrument you want to invest in via our Invest Pocket (for fractional shares), Crypto Pocket ( for fractional coins) or the latest addition, the Precious Metal Pocket (for fractional precious metals).

By purchasing fractional shares, fractional coins or fractional precious metals you enter into a bilateral agreement with CM-Equity AG (CM-E). CM-E is the sole counterparty for all claims arising from the fractional shares, coins or precious metals. The trading of the fractional shares, coins or precious metals doesn’t take place on the exchange but via CM-E as counterparty, Over-the-Counter (OTC).

The following information is only relevant to fractional precious metals and fractional shares: CM-Equity AG is a member of the Compensatory Fund of Securities Trading Companies (Entschädigungseinrichtung der Wertpapierhandelsunternehmen, “EdW”). The EdW grants you compensation if CM-E is not able to meet its liabilities from securities transactions. The compensation case must have been determined by BaFin. A claim for compensation exists only if funds are denominated in the currency of an EU member state or in euro and is limited to 90% of the claim or a maximum of €20,000.00.

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