It is possible to purchase and sell fractions of whole shares, also known as fractional shares. To accomplish this, you can modify the quantity of your order based on your personal preference.
What are fractional shares?
Fractional shares are split-up portions of a whole share. By trading fractional shares, investors can open positions with more expensive instruments without having to pay for the total cost of a full share.
Example: You wish to buy shares in Company A, however, the price for 1 share is 200 USD. You can place an order for a fractional share of 0.1, which will cost only 20 USD.
Which instruments offer fractional trading?
Most instruments available on the Invest accounts and ISAs can be traded fractionally.
Fractional Market, Limit, Stop and Stop Limit orders are all supported.
You can check all available order types 👉 here.
How to place an order for a fractional share?
You can place a fractional order both by choosing the value you want to purchase or by manually typing in the fraction of the share you want to place an order for. When placing a pending order for fractional shares, you will only be able to set it by number of shares.
Corporate Events
Voting
If you hold fractional shares, you will be able to exercise your voting rights based on the number of fractional shares you own.*
Note: We will exercise our best efforts to provide access to such events. More information on voting rights can be found here.
Dividends
If you hold fractional shares, the dividend will be distributed to your account based on the fraction of owned shares rounded to the nearest penny.
Stock Split
In the event of a stock split or a reverse stock split, fractional shares will be treated as any other share and split up accordingly.
Disclosure
We will comply with “best execution” on all fractional orders in compliance with regulatory requirements. Execution will be based on a price no worse than the prevailing bid/offer on the reference exchange at the time of your order for all full and fractional orders.
See more information on this 👉 here.