With fractional shares or dollar-based orders, you can trade National Market System (NMS) exchange-listed stocks. This includes stocks listed on the NYSE or Nasdaq. Stocks and ETFs available for fractional shares or dollar-based orders can change at any time, and you will receive an error message if an investment you are trying to trade is not eligible.
The Details
Trading in fractions or dollars is available on the Fidelity Mobile App. You can place market or limit orders, good for the day of the trade only. Fractional shares or dollar-based orders are eligible for real-time execution during market hours (approximately 9:30 a.m. to 4:00 p.m. ET) on normal trading days, and they may only be placed while the market is open. Fractional share quantities can be entered out to 3 decimal places (.001 as long as the value of the order is at least $1.00). Executions will be rounded down to the nearest .001 shares. Fractional shares or dollar-based orders can be entered out to 2 decimal places (e.g., $250.00), and your order will be converted into shares out to 3 decimal places (.001) and are rounded down to the nearest decimal. Investors utilizing fractional shares or dollar-based orders experience bid-ask spreads proportionally equivalent to the spreads for whole shares.
It's also important to know that the value of a trade may be impacted when entering a dollar-based buy or sell order. As orders are converted to shares, there is some rounding off of shares, so the value of shares you receive might be higher or lower than the dollar amount you requested. Also, sell orders are subject to additional assessments, and sell orders placed in certain account types, or account conditions, may be subject to taxes, which could reduce the proceeds of the order.
Dividend Reinvestment Program
If you currently participate in Fidelity's Dividend Reinvestment Program, after you’ve placed your first fractional shares or dollar-based order, any fractional shares in your account acquired prior to that point in time will no longer be automatically liquidated when you sell.
Proxy Votes and Transfers
You will not be able to participate in proxy voting or participate in most voluntary corporate actions for the fractional share portion of a position. You can't transfer or receive certificates for fractional share positions outside of Fidelity. Fractional share positions will need to be liquidated prior to transferring out.