FX Rate + Fractional Shares


Is FX applied to dividend payments? Also is there a way to buy whole shares not fractional?


Not sure about the dividend question. Find everything regarding fractionals here: Feature request: ability to select to buy or sell by number of shares or cash amount

Short answer: UK shares you can only buy whole. US default is fractions

Freetrade have stated there will be changes to the fractional approach allowing us to choose whole shares or fractionals - no specific date on that yet

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I am just trying to understand the risk related to fractional shares.

If I buy 3.5 shares will I be able to get out of the 3 shares but the other 0.5 share has higher liquidity risk? Or selling the whole 3.5 share lot will be more difficult?

Also I guess fractional shares mean fractional dividends as well? I.e will I be entitled fot a dividend for the 0.5 share?

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Thank you.

From what I understand there is no liquidity risk

If you read the terms and conditions, fractional shares on FT are exactly as liquid as whole shares.

Yes, you get fractional dividends.

Would be interesting to know if there is an FX charge for dividends. If the payout is 45% and reinvesting is 45% then it is quite expensive I guess.

0.45%, not 45%. But yes I’d assume that after receiving and reinvesting a div you’d have paid the 0.45% fee twice.

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0.45% i meant.

I agree it’s not great. Hopefully being able to hold USD in account or DRIP will lower that cost, but that could be some time.


Just discovered that Transferwise also charge 0.45% fee for USD to GBP.

Can check out the fee you’ll pay to FT here if you plug in the dollar value https://transferwise.com/gb/pricing/send-money?source=USD&target=GBP&payInMethod=BANK_TRANSFER&sourceAmount=100000


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