Fractional Shares Terms and Conditions
Questrade enables clients to trade and hold in a Questrade account a fraction of a whole share of select US-listed stocks and Exchange-Traded Funds (ETFs) (together and each a Fractional Share). Questrade reserves the right to select and modify the stocks and ETFs eligible for Fractional Share trading. If a stock or ETF was previously eligible and is no longer eligible for Fractional Share trading, you will still be permitted to liquidate the fractional holding in that stock or ETF in your Questrade account.
Moving Fractional Shares
A Fractional Share cannot be transferred between accounts or transferred out of Questrade. The Fractional Share must be liquidated, and the cash proceeds can be transferred, which may have tax consequences.
Trading Fractional Shares
Only market orders (of one day duration) are permitted for Fractional Share trading. The minimum dollar amount to purchase a Fractional Share is one dollar ($1) and the minimum dollar amount to sell a Fractional Share is 1 cent ($0.01). Orders may be placed at any time but will only execute during market hours in accordance with Questrade's Best Execution Policy.
Holding Fractional Shares
Questrade records the quantity of Fractional Shares traded or otherwise held in a brokerage account down to four decimal places. Any Fractional Share entitlement of less than 0.0001 is not supported on Questrade's platform and will not be distributed.
Shareholder Rights
Fractional Shares do not bestow voting rights or the ability to participate in other corporate actions such as a grant of rights or an offer to tender. Voting rights typically accompany whole share holdings. If you purchase enough Fractional Shares to make a whole share, you would then be entitled to exercise any voting rights or make any voluntary elections accompanying such whole share holding.
Dividends
A Fractional Share holding may entitle you to receive a cash dividend that is proportionate to the fraction of the whole share held. Any cash dividend entitlement for a Fractional Share must be equal to or greater than 1 cent ($0.01), or will not be paid. A Fractional Share may be able to participate in other mandatory corporate actions (splits, reverse splits, share dividends), subject to the four decimal place holding limit.