Fractional shares are shares with a quantity of less than one, or fractions of a whole share. Firstrade offers fractional share trading for most stocks and ETFs. This means you may trade pieces of a stock, in addition to trading in whole share increments.

Numerous stocks command high prices, reaching into the hundreds or even thousands of dollars per share. For individuals with limited capital, selecting suitable investments can be challenging. Fractional share investing overcomes this hurdle, enabling you to invest with as little as $5. The option to buy fractional shares reduces the entry barrier to the stock market, presenting investment opportunities for investors across all levels.

Shareholder rights in proxy voting is only applicable to whole shares; fractional share portion of a position does not have voting capabilities.

If your equity position includes fractional shares, and the underlying security issues a dividend, you are entitled to receiving a dividend payment for the fractional shares in your holding.

Fractional shares are not transferable. If you initiate a full asset transfer out of Firstrade, your fractional shares will be automatically sold on your behalf, and the proceeds will be transferred as cash.

For fractional share trading, only market and limit day orders are accepted. It's important to note that only day orders are supported, meaning your order will only be active for the trading day it's placed on.

No, short selling is not supported for fractional share trading.

Yes, there is a $5.00 minimum requirement when purchasing a fractional share position. Additionally, the number of shares must be greater than 0.00001.

There is no minimum dollar amount required to sell a fractional position, but the number of shares must be greater than 0.00001.

No, you don't need to place separate orders for fractional and whole shares. For example, you can submit a single order for 1.5 shares.

No, fractional shares are not eligible for the Securities Lending Income Program.

No, conditional orders and trailing stop orders are not supported for fractional share trading. Only market and limit day orders are accepted.

When necessary, the quantity of fractional shares in your account will be rounded to the nearest fifth decimal place.

A dollar-based order in fractional trading allows investors to buy or sell shares based on a specific dollar amount, rather than the number of shares. For example, an investor can specify that they want to invest $50 in a particular stock, regardless of the stock's price per share.

Yes, dollar-based orders can be canceled. However, once placed, they cannot be edited; the investor must cancel the original order and place a new one if they wish to change the investment amount.

A share-based order allows investors to buy or sell a specific fraction or number of shares, rather than focusing on the total dollar amount. For example, an investor can specify that they want to buy 0.5 shares of a particular stock.

Yes, share-based orders in fractional trading can be both edited and canceled. This flexibility allows investors to adjust their investment based on the number of shares they wish to buy or sell before the order is executed.

If you need to sell a symbol not supported for fractional trading, please send an email to [email protected] to request liquidation of remaining fractional shares.

Fractional trading is available on the Firstrade website and mobile app. Please update your Firstrade app to the latest mobile version.