Pepper, the digital bank of Israel’s Bank Leumi, is launching a new brokerage service for investing in fractional shares of S&P 100 companies traded on Wall Street. The service will allow anyone over the age of 18 to invest in a limited range of multinationals like General Motors, FedEx, Facebook, Disney, and Amazon.
Investment in Wall Street-traded companies requires buying whole shares, which can often run quite pricey for companies like Facebook, currently traded at around $190 per share. Pepper Invest will enable people to buy portions of shares at a lower entry point starting at NIS 50 (approximately $14.2), by combining several fractional deals into one investment. The commission rate for the new service stands at 0.2% per quarter, or 0.8% for the full year for the entire portfolio, with no additional fees, much cheaper than other brokerage services, even Pepper’s parent bank’s own brokerage service Leumi Trade, which carries a 0.9% commission for each deal as well as a quarterly management commission of 0.2%.
Read the full article on Calcalistech.