DriveWealth's unique Fractional share program allows you to purchase securities in dollar amounts rather than share quantities. Please be advised that trading in fractional shares has unique risks and limitations that you should understand prior to participation in DriveWealth’s Fractional Share Program.
Pricing: There is a fee associated with the purchase and sale of fractional shares on the DriveWealth platform. All transactions in fractional shares are subject to a commission of $0.99/trade (DW Classic Commission Rate) or $0.01/share (DW Unlimited Commission Rate).
Rounding: DriveWealth rounds the amount of fractional shares you can purchase and own in your account down to the nearest four decimal places. This may affect your purchase of a fixed dollar amount order. For example, if you order $100 of a security, your transaction may not total exactly $100 due to rounding (it could be a penny less, but would never be more than the order amount, prior to commission charges).
Rounding may also affect your ability to be credited for cash dividends, stock dividends and stock splits. For example, if you own .0001 of a share of stock that pays a one cent dividend per share, we will not credit your cash balance a fraction of a cent.
No Limit Orders: DriveWealth will only accept market orders for fractional shares at this time.
Trade Capacity and Execution: DriveWealth executes the full share portion of customer orders on an agency basis, routing them to market centers. To satisfy your fractional share portion of order, DriveWealth will sell to you from our account, on a principal basis, using the avg price of the whole share portion
Transfer of Fractional Shares: Fractional shares are not transferable. If you close your account or transfer your account to another firm, the fractional share will need to be liquidated, resulting in potential commission charges. Fractional shares cannot be put into certificate form and mailed. They will need to be sold. The commission charge for liquidation may match the value of the fractional share if less than our minimum commission.