Now available in Orion Trading, fractional share trading lets advisors who custody with Schwab implement client models to the dollar to reduce cash drag and sharpen portfolio precision
Orion announced that fractional share trading is now available for advisors who custody with Schwab Advisor Services, delivered through Orion’s next-generation trading and rebalancing platform and its order management system (OMS). Advisors can now implement client models to the dollar — rather than rounding to whole shares — reducing uninvested cash and putting more of every portfolio to work.
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Because fractional shares run through the same Orion workflow advisors already use, Orion Advisor Tech clients who custody with Schwab were able to begin trading them as soon as the capability became available last month — with no separate tools or manual workarounds.
Key benefits of fractional share trading on Orion Trading include:
- Full model precision: implement target allocations to the dollar instead of rounding to whole shares, including high-priced securities.
- Less cash drag: smaller accounts and new fundings can be fully invested without waiting to reach a whole-share price.
- Cleaner rebalancing: model swaps, glide-path adjustments, and tax-loss harvesting can be executed more precisely.
- Lower model minimums and broader direct indexing: model-based diversification and index replication become viable for accounts previously below practical thresholds, with reduced tracking errors.
“Advisors have told us fractional shares would make a real difference in how precisely they can manage client portfolios, and we’re glad to bring that to advisors and firms who custody with Schwab,” said Trent Mumma, Chief Product Officer, Orion. “Because it’s built into Orion Trading and our OMS, advisors get fractional trading in the same workflow they already use — implementing models to the dollar and reducing cash drag.”
Fractional trading is currently available for Orion Advisor Technology clients using Orion Trading and for Orion Custom Indexing sub-advisory clients.
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