FRACTIONAL TRADING
Invest in the stocks you want regardless of share price
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Brokers | US Fractional Shares Available1 | |
---|---|---|
E-Trade | 0 | |
Fidelity | 7,000 | + |
IBKR | 10,500 | + |
Schwab | 500 |
[1] Fractional shares available for purchase as of June 16, 2023. Source: Bankrate
“IBKR has more fractional shares available across more markets than anyone else.”
Pick any eligible US, Canadian or European stock (or ETF, where available) and decide how much you want to invest - it's that easy. If the purchase price doesn't result in a whole number of shares, we'll buy or sell fractional shares.
Pick Your Stock |
Pick Your $ Amount |
Share Price1 | Number of Shares |
---|---|---|---|
NFLX | $25 | $644.50 | 0.0388 |
TSLA | $25 | $173.79 | 0.1439 |
GOOG | $25 | $176.03 | 0.1420 |
AMZN | $25 | $184.69 | 0.1354 |
$100 | Stock Portfolio |
Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.
[1] Share prices as of June 11, 2024.
With fractional shares you can divide your investments among more stocks to achieve a more diversified portfolio, and put small cash balances to work quickly to maximize potential returns!
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Fractional Shares | Whole Shares | |
---|---|---|
Ability to transfer shares | Fractional shares cannot be transferred in or out of IBKR. Instead, you can close your fractional share positions and transfer out the proceeds. (Standard fractional share trading commissions will apply.) | Whole shares can be transferred in and out of IBKR (provided there are no restrictions on the shares in question.) |
Account availability | IE: Fractional shares are available for all account types. UK: Fractional shares are available for all account types except ISA and Junior ISA accounts. | Whole shares are available for all account types. |
Capacity | An IBKR affiliate will generally act as the counterparty in fractional share trades and will execute the trade as principal or riskless principal. | Orders for whole shares may be handled in an agency capacity or may be executed by an IBKR affiliate acting as principal. |
Commissions | Fractional share commissions may be different to the commissions that apply to whole shares. | Whole shares are subject to standard IBKR commissions. |
Corporate actions | You cannot make voluntary elections on corporate actions regarding fractional shares. You will participate in any stock splits, mergers or other mandatory corporate actions. | You will be able to make voluntary elections on corporate actions with respect to whole shares and participate in any stock splits, mergers or other mandatory corporate actions. |
Dividends | You will receive payments of dividends, or in the case of stock dividends, either dividend shares or value commensurate to the dividend shares. | You will receive dividends on whole shares. |
Minimum investment | Orders submitted in share increments must be entered for at least 0.0001 shares. Orders submitted in monetary increments must be for a minimum of USD 1. | The minimum investment is dependent on the price of a single share of the stock/ETF in question. |
Order types | Only certain types of orders are available for fractional share trading (e.g., market orders, limit orders, stop orders, stop limit orders, etc.). | A wider range of order types are available when trading whole shares. |
Ownership | You will be the beneficial owner of any fractional and whole shares in your account and all fractional shares you own are segregated in IBKR's books and records. | |
Platform availability | Fractional shares are available on all IBKR platforms except via IBKR API. | Whole shares are available on all IBKR platforms. |
Product unavailability | IBKR can, at its discretion, remove any stock from the list of stocks eligible for fractional trading. If we stop offering fractional share trading in a product, we will liquidate fractional positions in the product and credit the proceeds to your account. | IBKR can, at its discretion, limit any security to closing only, meaning you can close existing positions but not open new ones. You may transfer these shares to another broker willing to accept them. |
Effect of Trading Halts | Exchanges or regulators may also halt trading in a security. If this occurs, IBKR would likewise stop trading in the fractional and whole shares. | |
Short selling | IBKR supports short selling of fractional and whole shares provided you have a Margin account. | |
Treatment in case of Insolvency | In the unlikely event of our insolvency, clients will still hold their fractional interest. If the insolvency administrator/liquidator cannot transfer fractional entitlements to another broker or custodian they may need to liquidate the fractional interest and return the proceeds to you. | In the unlikely event of our insolvency, clients will still hold their whole share interest, which can be transferred to another broker or custodian or liquidated. |
Voting rights | You will not have voting rights for the fractional shares held in your account. | You will have voting rights for the whole shares held in your account. |
[1] This information highlights the main differences between fractional shares and whole shares. It may not account for all differences - please refer to the Fractional Share Trading Risk Disclosure document for further information.