Meritz Securities Launches Fractional Trading Service for Overseas Stocks

[Asia Economy Reporter Lee Seon-ae] Meritz Securities announced on the 4th that it has launched a fractional trading service for U.S. stocks and is conducting an event that rewards representative U.S. market stocks accordingly.

The event period runs from the 5th until the end of October this year. Customers who have signed up for fractional trading of overseas stocks can receive representative U.S. market stocks such as Apple, Nvidia, and Tesla worth 5,000 KRW without any separate application.

Fractional trading is a service that allows trading of top U.S. stocks in fractions less than one share, in units of 1,000 KRW. A total of 310 stocks are available for trading, including the top market capitalization stocks from the Dow 30, Nasdaq 100, and S&P 500. Fractional trading is available through the ‘Meritz SMART’ app without the need for a separate application or additional account opening.

Along with the launch of the fractional trading service, Meritz Securities will also provide industry-leading overseas stock algorithmic trading services.

The additional algorithmic order types include LOO (Limit On Open), LOC (Limit On Close), MOO (Market On Open), MOC (Market On Close), TWAP (Time-Weighted Average Price), VWAP (Volume-Weighted Average Price), Limit TWAP (Limit Time-Weighted Average Price), and Limit VWAP (Limit Volume-Weighted Average Price), totaling eight types.

In times like these, when volatility in global financial markets is intensifying, various algorithmic orders can be used to execute strategic trades.

For example, TWAP (time-sliced trading) and VWAP (volume-sliced trading) allow trades to be executed by dividing the time or volume, or by analyzing past trading volumes to execute trades at the average market price during the session, enabling effective trading. Additionally, during periods of high volatility such as earnings announcements for individual stocks, risk can be reduced using orders like LOO (Limit On Open) and MOO (Market On Open).

Song Young-gu, Executive Director of Retail Business at Meritz Securities, said, “We hope that various customer groups will experience overseas stock trading through the fractional trading event,” and added, “Through the newly added U.S. market algorithmic order types, customers will be able to respond to the rapidly fluctuating market with diverse strategies.”