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As retail traders continue to exert their influence on the markets, the brokerage landscape is turning ever more competitive. In some ways, what were seeing is an accessibility arms race, where the offering of exchange-traded securities and derivatives is increasingly being tailored to beginners and smaller investors.

The idea is to make access to these products cheaper, easier, and thus to allow investors from all walks of life to gain exposure to these markets. Zero commissions were previously one of the frontiers of the battle between retail trading venues, however, today fractional and notional trading is very much the front line.Obstacles to Small Investors

The indivisibility of shares has always been a stubborn barrier to entry for retail traders, and its becoming more so as the stock prices of mega-companies that are most popular among them continue to rise.

Currently, a share of Tesla stock is trading for just under $197, while Meta shares are going for $174, and Apple for $151. Without the ability to allocate fractional amounts, the above prices represent the minimum investment amount of 1 share for someone seeking exposure to any of these names.

This is problematic as it places diversification out of the reach of smaller investors who cant afford to purchase a selection of different names outright. This is exacerbated by the fact that these securities become even more inaccessible during bull markets, precisely when interest in share-buying tends to peak. Tesla stock reached a high of over $400 in November of 2021, Meta over $380, and Apple over $180.

The ability to invest fractional amounts in an affordable manner solves the above issue. It levels the playing field by allowing a far wider base of investors to gain a share in the wealth created by these and other iconic companies. For example, a broker offering shares in 0.1 increments can allow someone to purchase a tenth of a share in each of the above companies for just over $50 ($19.70 + $17.40 + $15.10 = $52.20).

This enables an investor to allocate a small amount to each company every month, or in the case of notional trading, they can dollar-cost average into their chosen names on a monthly basis by just splitting that $50 equally between each stock. This is why fractional shares are such a big deal. Theyre the single most important thing brokers can do to catalyze the growing interest in investing among the general public, as well as encouraging new demographics to start participating in these markets.Fractional Order Routing

As with all things, the devil in the details. The way in which fractional shares offerings are implemented by brokers directly translates to how competitive they can be, as well as to what degree they can appeal to investor preferences.

A common approach to supporting fractional trading is known as route as received. In this model, when a broker receives a fractional order, they simply route it directly to the counterparty and everything is handled on their end. This is the simplest approach as it means that the brokerage doesnt have to concern itself with any of the technological and risk management logistics involved in holding and managing fractional inventories.

On the other hand, it means that the brokerage can only implement fractional trades on the assets offered by its executing venue, which can be limited. Theres also the issue of fees to consider, which can make the trading of fractional shares less favorable when the end client is investing small amounts. Both of the above mean that brokers offering fractional trades on a wider selection of names, and at more affordable prices, will enjoy a competitive advantage in an already highly competitive segment.Internal Fractional Inventory

The other approach is for the broker to manage their own fractional inventory internally. In this model, the broker keeps a small inventory of shares on its books for the purposes of netting-off incoming fractional orders.

A fractional rounding algorithm is employed to perform this function, so that when a new order comes in that requires fractions of shares, these can be allocated directly from internal inventory. In the case of the inventory being depleted, an order thats been rounded-up to the nearest whole number is forwarded to the brokers counterparty. When this order is filled, the client order quantity is distributed to the customer, while the remaining fractional quantity is placed in the brokers inventory.

In this way, the broker only has to keep a relatively small amount of shares on its books, and with automated position closure protocols in place, it can ensure that its exposure to any given stock will never exceed a predefined amount before those excess shares are automatically liquidated.

Pre-allocated block orders can also be used to place large group orders for a brokerages customers that can include whole shares, fractions, and notional amounts, with an order management system in place to allocate the correct qualities to relevant customers. The approach may seem a great deal more complex on the surface, but modern brokerage platforms are more than up to the task, allowing brokers to take control of their offerings, appeal to a wider client base, increase volumes, and generate revenues from commissions or fees depending on the business model.Introducing DXtrade XT

DXtrade XT is Devexperts flagship multi-asset trading platform for brokers offering exchange-traded securities and derivatives. It includes a web-based trading portal and native iOS and Android mobile applications. The platform features a fractional order management system with support for both fractional quantities and notional amounts, and comes packaged with a suite of broker administration tools.

Fully branded with company logos and colors, DXtrade XT is easy to integrate with any existing brokerage architecture and comes out-of-the-box with market data and news provision integrations. Maintained and supported by Devexperts around the clock, it has everything a broker requires to start their own in-house fractional shares offering and management thereof.

It looks pretty sweet, too. Get in touchto start the conversation about what it can do for your business. Or get onto your broker and request that they integrate it!

Featured image sourced from Shutterstock

This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content.

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Sources: Vols QB Iamaleava to play vs. Georgia

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Sources: Vols QB Iamaleava to play vs. Georgia

Tennessee‘s Nico Iamaleava has been cleared medically to play Saturday against Georgia and is set to return as the Vols’ starting quarterback, sources told ESPN.

Iamaleava, a redshirt freshman, missed the second half of the 33-14 win over Mississippi State last week after suffering a blow to the head. He was listed as questionable earlier this week on the SEC availability report but has been removed in the latest report.

Iamaleava practiced this week, including team periods, and there was optimism among the staff that he was trending in the right direction and would be able to play. But the final call was made by medical personnel. Iamaleava was examined by doctors for what sources told ESPN were concussion-like symptoms after leaving the Mississippi State game. He did not return to the sideline for the second half.

Tennessee coach Josh Heupel said on Monday that he felt like Iamaleava would be in “great shape for Saturday” and noted that Iamaleava was with the team earlier Monday morning for meetings and team activities. The Vols’ first full-scale practice was Tuesday.

Iamaleava was having his most productive outing against an SEC team this season before leaving the game against Mississippi State. He completed 8 of 13 passes for 174 yards, no interceptions and a pair of touchdowns as Tennessee built a 20-7 halftime lead. In Iamaleava’s previous five SEC games, he had accounted for three touchdowns and turned it over five times. He was also sacked 15 times in those five games.

Redshirt senior Gaston Moore filled in for Iamaleava in the second half last week and finished 5-of-8 for 38 yards with no touchdowns or interceptions.

Getting Iamaleava back for the Georgia game is big news for Tennessee, which is right in the middle of the SEC championship race and College Football Playoff picture.

Receiver Dont’e Thornton (hand) has also been given the green light to play for Tennessee after earlier being listed as questionable.

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College football preview: Tennessee-Georgia, Big 12 CFP scenarios ahead of Week 12

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College football preview: Tennessee-Georgia, Big 12 CFP scenarios ahead of Week 12

Week 12 is here as we take a look at an SEC matchup that has College Football Playoff implications, learn about three of the nation’s top passers who all played under the same coach and see what’s going on in the Big 12.

No. 7 Tennessee will visit Sanford Stadium as it takes on conference opponent No. 12 Georgia on Saturday night. With so much at stake, what can each team improve on ahead of this SEC showdown?

The Big 12 has six teams in the hunt for a spot in the conference title game. With the final CFP rankings coming out in less than a month, what scenario looks most realistic for the conference in terms of how many of its teams could make the 12-team field?

Our college football experts preview big games and storylines ahead of the Week 12 slate.

Jump to a section:
Tennessee-Georgia | The coach behind three top QB passers
What’s going on in the Big 12 | Quotes of the Week

What has each team done well in conference play? What improvements can be made?

Tennessee:

It has been a historic (and dominant) season for Tennessee’s defense, which has yet to give up more than 19 points in any of its nine games. Against SEC competition, the Volunteers lead the conference in scoring defense, giving up 16.7 points per game, and also lead the way in third-down defense and red zone defense. In other words, they’ve given up very little of anything on defense and are buoyed by a line that’s both talented and deep. Tennessee plays a ton of players up front and has been especially good at forcing key turnovers. In 23 trips inside its own 20-yard line, the Vols have forced six turnovers.

The reality is that Tennessee has played to its defense for much of this season out of necessity. The offense has lacked consistency and struggled to generate explosive plays, particularly in the passing game. It’s not all on redshirt freshman quarterback Nico Iamaleava, either. Iamaleava has thrown only five touchdown passes in six SEC games, and the Vols are tied for 10th with an average of 7.5 yards per completion. Iamaleava, who sustained a head injury in a win over Mississippi State last week, has been the victim of poor pass protection at times, and his receivers have dropped some costly passes. Iamaleava has also been shaky when it comes to overthrowing receivers and occasionally holding onto the ball too long.

The bright spot on offense for Tennessee has been running back Dylan Sampson, who has a school-record 20 rushing touchdowns. He has been a constant for the Vols on offense and has an SEC-leading 772 rushing yards and 11 touchdowns in conference play. As good as he has been, the Vols are probably going to need more from their passing game to win in Athens. — Chris Low

Georgia:

The Bulldogs didn’t do much of anything well in last week’s 28-10 loss at Ole Miss, which was the first time in a long time that Kirby Smart’s team was manhandled on the lines of scrimmage.

The good news for Georgia: It’s heading home to Sanford Stadium for the first time in more than a month. Georgia hasn’t dropped back-to-back games in the regular season since 2016, Smart’s first season, and it has bounced back after each of its past eight losses. The Bulldogs have won seven of their past eight games against the Volunteers.

For all of quarterback Carson Beck‘s turnovers, Georgia’s problems on offense probably start up front. The offensive line hasn’t done a good job of protecting him, and the Bulldogs’ lack of a potent running game has prevented them from effectively utilizing play-action passes. Their banged-up offensive line is going to face another formidable defensive front Saturday. Georgia has 27 dropped passes, fourth most in the FBS, according to TruMedia, so its receivers need to become more reliable as well. — Mark Schlabach


The coach behind three of college football’s top passers

Miami‘s Cam Ward, Washington State‘s John Mateer and North TexasChandler Morris are three of the top five quarterbacks in total offense this season in FBS. All three have the same head coach to thank for where they are today.

North Texas coach Eric Morris coached Ward at Incarnate Word and Washington State, recruited Mateer to the Cougars and signed Morris out of the transfer portal this offseason. All three hailed from Texas and are putting up big numbers this season. Morris, a Mike Leach disciple, knows what he’s looking for when it comes to QBs.

For each one, the journey was different. Ward was a zero-star recruit out of West Columbia, Texas, played in a wing-T offense and had no scholarship offers. But he showed up to Incarnate Word’s camp in 2019 and impressed with his quick release and accuracy. Morris saw appealing traits, too, in Ward’s multisport talents.

“He was such a good basketball player,” Morris said. “He was a bigger guy who could really handle the ball and move with ease. He had a twitch and quickness about him that was almost Mahomes-esque, where he’s not fast but you see him get out of the pocket and scramble and he’s nifty on his feet. He saw the floor great and shot the basketball great.

“It might be easier at an FCS school to take that risk, but it was something we were really confident in.”

Ward came in with extreme confidence, telling coaches he’d win the starting job over their returning all-conference player (and he did). He followed Morris to Pullman, Washington, out of loyalty to the coach who believed in him. Now he’s playing on a big stage, chasing a College Football Playoff bid and a Heisman Trophy with the No. 9 Hurricanes.

“It’s been fun to watch him flourish and get rewarded for being patient all these years,” Morris said.

When Morris left UIW to become Washington State’s offensive coordinator in 2022, he brought Ward but needed another QB. On his first recruiting trip in Texas, he stopped by to check out Mateer. The two-star recruit had a prolific senior season at Little Elm High School but was committed to Central Arkansas. Morris didn’t understand what FBS programs were missing and convinced Mateer to flip.

After two seasons behind Ward, Mateer has emerged as one of the top dual-threat QBs in college football with 2,332 passing yards, 805 rushing yards (excluding sacks) and 33 total TDs.

“I think the sky’s the limit,” Ward said. “He’s just so dang hard to tackle in the open field. Just a kid that loves ball and was under-recruited. The tide’s turned and he ends up being a big-time ballplayer.”

Chandler Morris was not an under-the-radar talent, but he’s having his best season yet at North Texas. He began his career at Oklahoma, won the starting job at TCU in 2022, sustained a knee injury in its season opener and then watched Max Duggan lead the Horned Frogs to the national title game.

Morris had a six-game stint as TCU’s starter last season before injuring the same knee. At UNT, he’s leading the nation’s No. 3 passing offense with 3,244 total yards and 30 TDs. Like Ward and Mateer, he processes information quickly, makes plays with his feet and throws outside the pocket with accuracy. If you ask Eric Morris, those traits are a must in today’s game. When paired with his version of Air Raid ball, you get big-time results.

“It’s been fun to see him get his swagger back,” Morris said.

Eric Morris points to Patrick Mahomes, Lamar Jackson and Jayden Daniels. The QBs thriving at the highest level are becoming unstoppable by creating plays out of the pocket. And so are his guys.

“Everybody obviously watches Cam and the magic he makes,” Morris said, “but I think all three of ’em can make plays when it’s not a perfect play call. There are a bunch of really good pure passers nowadays, but that’s what sets them all apart.” — Max Olson


What’s going on in the Big 12?

Two-thirds of the way through the Big 12 schedule, six teams are still in the hunt for a title-game appearance: BYU (6-0), Colorado (5-1), Arizona State, Iowa State, Kansas State and West Virginia, all of which are 4-2. There are too many variables to discuss all the scenarios, but the conference has a straightforward tiebreaker policy.

It’s possible to come up with scenarios in which the Big 12 could get two bids, one bid or shut out altogether.

For the Big 12 to get two bids, BYU probably would have to finish 12-0, then lose a close game in the championship to a two-loss team (Colorado, Iowa State or Kansas State). A 12-1 BYU team would get consideration, but it would become a question of how far it would fall and what else happens around the country.

The most likely scenario is the Big 12 will get one team in: whichever one wins the conference title game. If BYU wins out, it will have a bye, but if it slips up even once — or if another team wins the title — Boise State might be in position to get a first-round bye, assuming the Broncos win out.

The doomsday scenario in the Big 12 is if the conference champion has two or three losses and Army and Boise State win out. If that’s the case, there is a good possibility both of those schools would be ranked ahead of the Big 12 champion and the Big 12 would be left out. — Kyle Bonagura


Quotes of the Week

“They’re stubborn, man. They’re physical. He is an elite runner. The runs they run are sometimes nontraditional. They run some runs that other people don’t run because of the space in the box. He’s very patient. He hits small creases. He’s hard to tackle. How many touchdowns has he got in the SEC? Twenty-something? That’s crazy. In the SEC? The SEC is the hardest league in the world to run the ball in on because they’ve got the most size defensive lineman, and he continues to do it at a crazy pace to me.” — Kirby Smart on Volunteers tailback Dylan Sampson.

“I never try to take a step back. I try to take a step up. I’m always putting my head out the window. I’m trying to see around the corner, not trying to see straight ahead. It’s normalcy for everybody to see what’s in front of them. I’m trying to see around the corner. That’s the relationship I have with the Lord, to help me see around the corner so I can help navigate these young men as well as the women that’s attached to our program to a better way and a better life. So I don’t get caught up in the ‘You go, boys!’ or the ‘You ain’t nothing.’ You know, if I would’ve listened to you guys earlier, I’ve gotta listen to you now. So I might as well just put some headphones on and block you out. Notice I don’t have a sponsor for headphones, but that would’ve been a good placement for a sponsor.” — Deion Sanders when asked if he takes time to step back and appreciate the magnitude of Colorado’s turnaround.

“I hope anyone who has ambitions about playing in the National Football League, let’s see what you’ve got against Clemson. Let’s see you play your best game here. If you weren’t focused for Virginia, which I can’t imagine you weren’t — and I’m not saying anybody was not focused — but if they didn’t get your focus, I imagine Clemson will get your focus when you put the tape on.” — Pitt coach Pat Narduzzi on whether playing Clemson gets the attention of his players.

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What makes a Honda a Honda? Prologue engineers help us find out!

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What makes a Honda a Honda? Prologue engineers help us find out!

On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.

Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.

Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Learn more by clicking here.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news!

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Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show!

Read more: All my favorite EVs, racecars, and robots from Electrify Expo Austin.

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