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Trading Fractional Shares | Stocks

What is Fractional Share Trading?

The ability to trade fractional shares makes it easier for you to invest in companies that you like without having to purchase a full share of stock. This is particularly of interest when it comes to investing in companies with higher-priced shares. It also makes it easier for you to diversify your portfolio by allowing you to purchase fractional amounts in multiple companies when you otherwise may have only been able to purchase whole shares in one or two companies. For more diversification, you may wish to consider investing in other types of securities (like diversified ETFs and mutual funds). 

If you enable your account to trade in fractions, we will buy or sell a fraction of a share based on the amount of cash you specify. For example, if you want to spend $500 but one share of the stock you want to buy is currently $1000 you would end up with half of a share (0.5 shares).

Who is eligible for fractional share permissions?

All individual, standalone accounts (except those who reside in Israel) are eligible for fractional share permissions.

Financial Advisors, Money Managers, and Introducing Brokers may enable their clients on an all-or-none basis.

How can I trade fractional shares in my account? How to add How to enable trade How to set up fractional shares in my account?

If you are eligible then you can enable fractional share trading in Client Portal/Account Management.

How to add fractional share trading to your PT account:

• Log into your Client Portal/Account Management 
• Select Settings followed by
• Account Settings and
• Click on the Configure (gear) icon (located next to "Trading Experience & Permissions."
• Scroll down to "Stocks" and check the box for "United States (Trade in Fractions)" 
• Click CONTINUE and then be sure to follow the prompts on your screen.

Please note: 

TWS Build Version 979 or later is required to trade fractional shares. This feature currently supports most order types. Please feel free to call us at 919-719-7200 if you have any questions or need help getting started.

Which stocks can I trade in fractions? What products can I trade in fractions?

U.S. stocks listed on NYSE, AMEX, NASDAQ, ARCA, or BATS, as well as OTC Pink U.S. penny stocks with average daily volume above $10 million and market cap above $400 million, are available for fractional shares trading.

Non-U.S. stocks are not available for fractional shares trading at this time.

To download a list of stocks that can be traded in fractional shares, please click on the link below. The file should show at the bottom of your screen or you may need to open your download folder to open it. Please note, this list is subject to change without notice:

Stocks Available to Trade Fractional Shares (Click to Download)

Can I short fractional shares?

PT does support short sales in fractional shares of eligible U.S. stocks as long as you have margin and approved trading permissions for "United States (Trade in Fractions)"/"Stocks". You can request trading permission in Account Management (the new client portal). 

What are the fees associated with fractional shares? How much does it cost? Is it free?

There is no additional fee to use fractional share trading. Standard transparent commission rates apply.

Can I transfer fractional shares to PT?

Unfortunately, we do not accept fractional shares through a position transfer at this time.

Will I get dividends on my fractional shares? Do I receive dividends?

Yes, your fractional share positions are eligible to receive dividends in the same manner as your full positions on the same stocks. Of course, if the stock does not pay a dividend then you will not receive a dividend for that stock.

Are fractional shares eligible for the Dividend Reinvestment Program (DRIP)? Can I reinvest my dividends?

No, DRIPs are not currently available for individual stocks. It is not possible to receive fractional shares for a reinvested dividend through the Dividend Reinvestment Program (DRIP). Please check back with us as we may offer this feature in the future.

Yes, DRIPs are available for your mutual fund dividends, which can be re-invested and often result in holding fractional shares of the fund. To clarify, DRIPs are not available for stock dividends, however, they are available for mutual fund dividends.

Will I receive a fractional share position from a corporate action?

If your account has been approved for trading fractions and a US corporate action issues fractional shares, then the fractional shares will remain in your account.

However, it is important to note that your shares will be liquidated if your account:

• does not currently have permissions to trade in fractions or
• the corporate action is issuing non-US shares or non-eligible US shares, the fractional shares will be liquidated.

Is fractional trading available for the API?

No, fractional trading is not supported via API or FIX/CTCI at this time.

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For information regarding Canadian stock transfer restrictions, please call us at 919-719-7200.

As with any investment, there are risks. Investors should consider these risks, the investment objectives, charges and expenses outlined in the prospectus carefully before investing in any Mutual Fund. For a prospectus containing complete information, contact the fund you are considering or your broker at 919-719-7200 or 1-800-50-PLACE. Please read the prospectus carefully before you invest. Past performance is no guarantee of future results. Principal value and investment returns will fluctuate with changes in market conditions. An investor's shares, when redeemed may be worth more or less than their original cost.