Fractions for all šŸ°

A post was merged into an existing topic: Drip (automatically reinvesting dividends)

Wow, this is actually awesome! Forgive my ignorance, I wasnā€™t aware of it :astonished:

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Hi Yas, love a reg geek question.

The carved up share will be held in the nominee name (i.e. held as client assets), not in our name. We wonā€™t need to re-register existing assets for this purpose.

It doesnā€™t really make DVP more complex and we donā€™t anticipate more custody breaks. But it does need strong technology to work smoothly, which is why we have been building our own investment platform with this functionality in mind.

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So how many 0ā€™s can we now add to the Freetrade share price? :wink:

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Fractions will come in useful when Freetrade IPOs at Ā£hundreds per share :smile:

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11 posts were split to a new topic: Administering fractional shares

Amazing!

Looking forward to auto reinvestment of dividends too - any idea on when this feature may be released?

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We donā€™t have a timescale for this yet, weā€™ll share the news here: ā˜‘[Feature Request šŸ”§] Autopilot šŸ¤– (Automatic investment) - #17 when we do!

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Ok no problem, cheers Alex

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What happens when a share costs Ā£50 and you get 3 orders of Ā£25?

I have a question regarding dividend payouts - if I own just a fraction of a share in a company that wants to pay out dividens, how does this work?

Thanks in advance!

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Hi Pavla, you would receive your percentage portion of the dividend - so 50% of a share would mean 50% of the dividend paid out per share

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Will you be able to buy fractional shares in a ISA?

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Yes you will :boom: [spoiler][/spoiler]

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Will ETFā€™s be available in fractions ?

Yes they will :grinning:

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:boom: :man_cartwheeling: :dizzy: :tada:

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This is great news! While my original reason for wanting this functionality was for the crazy US per share prices, itā€™s an excellent point about being able to reinvest dividends. Combined with Freetradeā€™s fee structure, this will allow people to create genuinely diverse portfolios with any level of capital. Game changing IMO. :sunglasses: :100: :chart_with_upwards_trend:

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Not sure about other brokers but Halifax offers dividend reinvestment that results in fractional shares via the ShareBuilder option.

A few questions that came to mindā€¦

Will we pay stamp duty on fractions?

Can you buy fractions in an ISA?

Could Fractional US shares could be sold in Ā£, avoiding the 0.45% FX fee on buying and selling weā€™ve all come to love?

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