Orion Brings Fractional Share Trading to RIAs Using Schwab Custody
- 8 hours ago
- 1 min read
Steves, R. (2026, August 5). Orion brings fractional share trading to RIAs using Schwab custody. FinanceFeeds. https://financefeeds.com/orion-brings-fractional-share-trading-to-rias-using-schwab-custody/
Orion launched fractional share trading for registered investment advisors who custody with Schwab Advisor Services, integrated directly into Orion Trading and its order management system.
The capability targets whole-share limitations that create residual cash balances and tracking differences from intended allocations for firms managing thousands of client accounts through model portfolios.
Advisors can invest capital to exact dollar amounts, reducing cash drag from uninvested capital waiting to accumulate for full-share purchases.
Fractional positions enable more accurate index replication for direct indexing strategies and smaller accounts without substantially increasing operational complexity.
Trent Mumma, Chief Product Officer at Orion, stated that advisors reported fractional shares would make a real difference in how precisely they can manage client portfolios.
The integration operates within existing Orion workflows, requiring no separate applications or manual processes.
Portfolio rebalancing gains precision, tax-loss harvesting executes more efficiently, and the practical minimum account size for model-based investing effectively decreases.
Knote: Given that almost 1/3 of the S&P is trading over $250 per share, this seems like a solid win for advisors.