Until now, investors have only been able to place limit orders for whole stocks, but as fragmented stocks are also available on the platform, not everyone has been able to take advantage of limit orders.
“Fractionalization of assets is paramount to ensuring fair access to the world’s markets for all, no matter how wealthy someone is, which is in line with Lightyear’s ambition to empower investors. This is particularly important for the world’s largest companies, whose share prices can be in the hundreds of dollars,” the company said.
Through fractional shares, Hungarian investors can now trade small fractions of U.S. stocks and place limit orders to buy or sell, for example, 0.5 of a given share at a given price. This makes it easier for them to control their investments and, if necessary, to execute transactions at a desired price, thus making their investment more flexible and easier to manage.
Among the major stocks Lightyear says it has noted Hungarian interest in, Nvidia, Super Micro Computer (SMCI) and Tesla are the top targets.
In 2023, Hungary was one of Lightyear’s fastest-growing markets, and the company says it has started to focus on incorporating features specifically requested by Hungarian customers.
This customer-centric approach is reflected in the recent launch of Lightyear’s interface in Hungarian, the third language to be available in Hungary. The launch of the first free Hungarian TBSZ account in January illustrated Lightyear’s commitment to providing Hungarian investors with easy-to-understand and efficient investment options, the firm says.
“Lightyear’s goal is to make Hungarians better investors. The first step to this is access, which we provided when we launched a year ago,” says Jani Kiilunen, head of product development at the firm.
“But it also involves making sure that people have the right data, analytical tools and products at their fingertips to make informed financial decisions and build wealth over time. Our team has been talking a lot to Hungarian clients to understand their needs, and we’ve seen a lot of investment going into U.S. equities,” he noted.
“This is why it is essential to extend limit orders to fractional U.S. equities, as this will help us support clients in developing their investment strategy,” Kiilunen added.
Lightyear was founded in October 2020 by Martin Sokk and Mihkel Aamer, both early employees of Wise (formerly TransferWise), and has offices in London as well as Tallinn, Estonia. Lightyear Europe AS is regulated by the Estonian Financial Supervisory Authority as an investment firm authorized to provide services in all EU and EEA countries. The company has raised USD 35 million to date and is backed by Lightspeed Venture Partners, Mosaic Ventures, Metaplanet and Taavet+Sten. Other investors include Sir Richard Branson and Monzo’s early backer and HM Treasury’s Special Envoy for Fintech, Eileen Burbidge MBE.
This article was first published in the Budapest Business Journal print issue of June 28, 2024.
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