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Fractional shares

Fractional shares on Stake AUS

Unlike U.S. stock exchanges, trading fractional shares on the ASX under the CHESS model is not possible.

If you have purchased fractional ASX shares on another investment platform, it’s likely that they operate on a Custodial model. The broker would hold entire shares under their HIN and assign fractions to investors.

You can learn more about the difference between the CHESS and Custodial models here.

Fractional shares on Stake Wall St

With Stake, you have the opportunity to buy a fraction of a company’s stock instead of having to pay the full amount to own one full share. While many stocks are priced in the hundreds of dollars per unit, fractional shares allow you to invest with a fraction of the stock. 

Orders and execution

When buying fractional shares, you set the dollar value of your investment (e.g. US$100 of TSLA). When selling, you’ll enter the number of shares you wish to sell (e.g. 4.3142 shares of TSLA). Please note that fractional shares can only be traded using Market or Stop orders. If you submit a market order for a whole share i.e. 1 unit at market, you may receive a fractional quantity that is just above or just below the whole unit share (e.g. receive 0.99 share rather than 1 share).
You can read more about different order types here.

You may receive multiple confirmations if your trade contains more than one full share. For instance, if you sell 3.4563 shares of TSLA, the fractional and whole share components will appear on separate trade confirmations.  

Fractional orders are subject to the NBBO (National Best Bid Offer) regulations of the U.S. market which means you'll generally get the best possible fill for your trade at the time of execution, no matter the size of your order. 

Our broker has undertaken to comply in all respects with its regulatory best execution requirements on all orders it executes for the clients, however, best execution requirements take into account a number of factors (not only the price) for example, likelihood of execution and settlement, speed of execution, costs, size, nature of the market, volatility, and liquidity.


Fractional shares carry the same level of ownership as full shares do. Your holdings are registered and held in your name via the custodian model in the U.S. When you submit an order for less than one full share, our broker-dealer DriveWealth will purchase a whole share and designate you as the owner of your fraction.

You retain beneficial rights (voting, dividends etc) as a fractional shareholder. You can read more about U.S. share ownership here as well as our U.S. broker partner’s fractional shares disclosure.

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Stakeshop Pty Ltd, trading as Stake, ACN 610105505, is an authorised representative (Authorised Representative No. 1241398) of Sanlam Private Wealth Pty Ltd (Australian Financial Services Licence No. 337927) ('Sanlam') and an authorised representative (Authorised Representative No. 1241398) of Airwallex Pty Ltd (Australian Financial Services Licence No. 487221) ('Airwallex'). Stake is not authorised by Airwallex under Airwallex’s AFSL to arrange for clients to be issued with securities as Airwallex is not authorised under its AFSL for this purpose. Stake is not authorised by Sanlam under Sanlam’s AFSL to arrange for clients to be issued with a non-cash payment facility as Sanlam is not authorised under its AFSL for this purpose. Stake SMSF Pty Ltd (‘Stake Super’) is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up a self managed super fund (‘SMSF’). When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment of a SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. Stakeshop Pty Ltd will also run marketing and promotions to you under. For more information about SMSFs, see our SMSF Risks page.The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake and Stake Super, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice given by Stake is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Financial Services GuideTerms & ConditionsPrivacy Policy and Disclaimers  before deciding to invest on or use Stake or Stake Super. By using our website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake and Stake Super are registered trademarks in Australia.

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