FRACTIONAL SHARES TRADE WITH CAPTRADER

All individual and corporate accounts (except for clients residing in Israel) are eligible to purchase fractional shares. Financial Advisor accounts can either have all or none of their sub-accounts enabled for trading fractional shares.

If your account has trading rights for shares, fractional shares are automatically unlocked.

You activate the trading authorizations for fractional shares under this path: Account Management (Client Portal) > Settings > Account Settings > Trading Experience & Permissions. Add here under shares the Country USA and, if applicable USA (trade of fragments) added. After three business days of processing, you are approved to trade fractional shares.

European and U.S. stocks listed on the NYSE, AMEX, NASDAQ, ARCA or BATS exchanges, as well as OTC Pink U.S. Penny Stocks with average daily volume greater than $10 million and market capitalization greater than $400 million are available for fractional share trading.

CapTrader supports short sales in fractional shares of eligible US stocks as long as you can deposit the margin and have the trading authority.

IBKR only accepts certain types of fractional share orders (e.g. market orders, limit orders, stop orders, stop limit orders, etc.). If a customer places a non-exchange-eligible limit order with a fractional component, the fractional component cannot be executed until the order becomes exchange-eligible (and therefore cannot be executed at all), even if the order would have been executed earlier had it been submitted for a whole share quantity. Please contact us if you have any questions about the order types available for trading fractions.

There are no additional fees for trading fractional shares. Standard commissions for US equities apply.

IBKR records the number of fractional shares traded or otherwise held in an account to four decimal places.

Currently, fractions of shares cannot yet be transferred from other securities accounts.

You can receive dividends on your fractional shares in the same manner as you receive dividends on your full positions in the same shares.

Currently, it is not possible to receive fractional shares for a reinvested dividend through the Dividend Reinvestment Program (DRIP). We hope to be able to offer this in the future. Please note that this does not apply to dividends from mutual funds, which can be reinvested and may result in you holding fractional fund shares.

If your account is eligible for fractional share trading and a U.S. corporate action issues fractional shares, the fractional shares will remain in your account. However, if your account is not approved for trading fractional shares or the corporate action issues non-U.S. shares or non-eligible U.S. shares, the fractional shares will be liquidated.

Customers do not have voting rights for fractional shares held in their account, cannot make voluntary corporate action decisions (including, but not limited to, tender offers or rights offerings) with respect to such fractional shares, and IBKR cannot provide customers with other shareholder records for holdings of less than one share. However, customers will receive dividend payments or, in some cases, in connection with stock dividends, either split shares or a value equal to the split shares and will otherwise participate normally in any stock splits, mergers or other mandatory corporate actions.

Fractional trading is not currently supported via API or FIX/CTCI.