We don’t have a timescale for this yet, we’ll share the news here: Drip (automatically reinvesting dividends) when we do!
Ok no problem, cheers Alex
What happens when a share costs £50 and you get 3 orders of £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!
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
Will you be able to buy fractional shares in a ISA?
Yes you will
Will ETF’s be available in fractions ?
Yes they will
This is great news! While my original reason for wanting this functionality was for the crazy US per share prices, it’s an excellent point about being able to reinvest dividends. Combined with Freetrade’s fee structure, this will allow people to create genuinely diverse portfolios with any level of capital. Game changing IMO.
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 mind…
Will we pay stamp duty on fractions?
Can you buy fractions in an ISA?
Could Fractional US shares could be sold in £, avoiding the 0.45% FX fee on buying and selling we’ve all come to love?
Buying and selling fractions works the same was as ordering whole shares, when it comes to the FX conversion (which is not a fee).
Double the stock, half the price. (Assuming 2:1 split) What else could it possibly be? I don’t see how it is relevant that it’s fractions.
If it was to be done that way, most likely you will get whatever it is rounded down to a single penny. Probably if it was a $436.75 stock of which you own 33% [$145.58], a 3:1 split will get you three shares worth $48.52 or $48.53. Would be prudent to assume it will be the former.
Fractional shares now in active development/ testing!
Can’t wait for this, will completely change how I invest on a monthly basis.
Absolutely. Really opens up some options.
Is this currently only going to be for the US markets, I am looking for this mainly for my ETFs.