Overview

• Trading fractional shares allows you to invest in companies which you may not be able to afford the full share price. 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…

ENABLE FRACTIONAL SHARES

Eligible clients can enable fractional share trading in Client Portal…

Individual accounts (both standalone accounts and clients of Financial Advisors) and organizational accounts including Lite customers are eligible for fractional share permissions with the exception of the following:

• ISA/JISA accounts
• PEA accounts…

Trading fractional shares allows you to invest in companies which you may not be able to afford the full share price. It also makes it easier for you to diversify your portfolio by allowing you to trade fractional amounts in multiple companies when you otherwise may have only been able to trade whole shares in one or two companies…

We offer fractional share trading on eligible U.S., Canadian and European stocks and ETFs, where available.

TWS Build Version 979 or later is required to trade fractional shares. This feature currently supports most order types…

When entering a fractional share order using Cash Quantity, the system will add a buffer of 5%-25% which could cause a rejection if your account does not have the funds to support the added amount. An alternative is to enter the order quantity as a fraction which will allow the order to be entered. To calculate the share quantity, please take your desired dollar amount and divide by the stock's current Ask Price…

Fractional trading is supported via FIX/CTCI but not via API at this time.

Additional Information…

We currently do not offer fractional share trading in a simulated trading account as, aside from the dollar amount invested, it's not materially different from transacting in whole shares…

IBKR does not accept fractional shares through a position transfer.

Additional Information…

US and Canadian fractional share trading benefits from the same commission structures as regular stock trading.

IBKR Lite offers unlimited commission-free trading of U.S. exchange-listed stocks and ETFs. Relevant U.S. Securities and Exchange Commission (SEC) & Financial Industry Regulatory Authority (FINRA) fees may apply…

IBKR does support short sales in fractional shares of eligible U.S., Canadian and European stocks if the following conditions are met:

• You have a Margin account
• You have approved trading permissions for "Global (Trade in Fractions)" / "Stocks"…

The following order types are supported for fractional share orders:

• Limit
• Limit if Touched…

TWS provides a built-in, dynamic method to transact stock orders using a specified cash value instead of a share quantity. Cash Quantity allows the user to enter a cash amount in the Quantity field, which is then used along with the bid/ask price to drive the number of shares purchased With Cash Quantity, the entered cash value remains constant and the share size varies based on fill price…

If your account has been approved for trading fractions and a US, Canadian or European corporate action issues fractional shares, the fractional shares will remain in your account. However, if your account does not have permissions to trade in fractions or the corporate action is issuing non-eligible shares, the fractional shares will be liquidated…

You will not have voting rights for any of the fractional shares held in your account, you will not be able to make voluntary elections on any corporate action (including, without limitation, any tender offers or rights offerings) with respect to such fractional shares, and we cannot provide you any other shareholder documentation for any holdings of less than one share…