Tradu fractional shares: dividend rounding and limits
Small fractional holdings can receive rounded dividends below a simple pro rata estimate; distinguish share precision from cash payment precision.
Holding precision
The stock agreement records fractional quantities to nine decimal places. That precision describes the holding; it does not promise that every tiny dividend produces a cash credit.
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Diagram explained
Share precision does not remove cash rounding
- Holding: 0.125 share
- Dividend: $0.0125 before rounding
- Cash: $0.01 in this example
Cash rounds differently
The fractional terms describe dividend amounts rounded down to the lower cent. For illustration, 0.125 shares receiving $0.10 per whole share yield $0.0125 before rounding, or $0.01.
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Official programme, eligibility or contract source Official programme, eligibility or contract source
Corporate actions matter
The FAQ says fractional holdings participate proportionately in dividends and stock splits. Check the actual event statement rather than expecting the same whole-share count after a split.
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An exit has a separate constraint
Alpaca’s fractional agreement restricts transferring fractional positions in kind outside its platform. A precise fractional balance can still require liquidation rather than a securities transfer.
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