A fractional share is a piece of a whole share of stock. Suppose a company called XYZ has its shares trading at US$ 100 per share. With Passfolio, you can buy a quarter of an XYZ share and pay just US$ 25.
All shares are held by Passfolio’s clearing broker partner, Drivewealth (which also powers similar apps in the US like Revolut). DriveWealth’s unique fractional share program allows you to purchase securities in dollar amounts rather than share quantities.
Fractional shares have some limitations, however. For instance, we do not accept limit orders for fractional shares and 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.
We also round the amount of fractional shares you can purchase and own in your account down to the nearest four decimal places, which may affect your ability to be credited for cash dividends, stock dividends and stock splits.
Before purchasing fractional shares, please read this important disclosure.
At Passfolio, we believe fractional shares can help make US stocks more accessible to people around the world. By offering fractional shares, we allow our users to buy pieces of stock as a more affordable alternative to buying full shares.
If you have any questions or concerns regarding fractional shares, feel free to reach out to us at email@example.com
¹Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.
Please read important legal disclosures that apply to your relationship with Passfolio.
Passfolio is a San Francisco fintech company democratizing investment opportunities by creating a unified, global, and borderless investment market starting with the United States Stock Market.