What are fractional shares?
Owning a fractional share means that you own less than a whole share of the company. Buying fractional shares is a popular way of investing in the US stock market. When trading with fractional shares, orders have a minimum quantity of 0.00001 and a minimum order amount of USD1 when opening a position.
Tiger may adjust the limit (minimum quantity or amount) for split shares.
- Supported Contracts
- Please refer to each stock and ETF’s homepage to check the fractional trading availability.
- Tiger may adjust the list of the stocks eligible for fractional shares at any time (Closing a fractional position will not be subject to this limitation).
How to purchase fractional shares
Fractional shares are only available with Tiger Trade app version 8.0.5 or above. On the upper right corner of the contract detail page, you will be able to see whether the instrument supports fractional shares or not. When placing an order, enter the quantity in decimal form through the numeric keypad with the minimum quantity of 0.00001 and the minimum order amount is USD1 (limits may be adjusted at any time). You can also choose to place an order by amount through the same page with a minimum amount of USD1. After the order has been executed, there may be a small gap between the executed amount and the order amount due to market volatility.
Can fractional shares be traded intraday?
Yes, they are traded the same as normal orders.
Do fractional shares pay dividends?
Yes, just like a whole share, fractional shares pay dividends. Clients will receive payments of cash dividends. In the case of stock dividends, you may receive the equivalent amount of cash in lieu of a fractional portion of additional shares resulting from the stock dividends.
What happens to fractional shares when experiencing a split?
- When your position is subject to a forward split or a reverse split:
(1) Retain the whole share component;
(2) the fractional part of this split will be sold for cash.
For example, you are holding 1.6 shares of XYZ at $10 per share. If XYZ is facing a 2 for 1 (2:1) forward split, you will own 3 shares of XYZ at a price of $5 per share, and receive cash worth 0.2 shares of XYZ at the current market price. If XYZ is facing a 2 for 1 reverse split, you will receive cash worth 0.8 shares of XYZ at the current market price.