Legal & disclosures

Questrade, Inc. (“Questrade”) enables clients to trade and hold in a Questrade account a fraction of a whole share of select Canadian-listed and US-listed stocks and Exchange-Traded Funds (ETFs) (together and each a “Fractional Share”). Questrade reserves the right to select and modify the stocks and ETFs eligible for Fractional Share trading. If a stock or ETF was previously eligible and is no longer eligible for Fractional Share trading, you will still be permitted to liquidate the fractional holding in that stock or ETF in your Questrade account. These terms are in addition to, and do not replace, the Client Account Agreement and the other agreements and disclosures applicable to your Account(s)  (collectively, the “Account Agreements”). In the event of any conflict between these terms and the Account Agreements, these terms govern with respect to the subject matter addressed in them; in all other respects the Account Agreements continue to apply in full. By trading or holding a Fractional Share, you agree to be bound by these terms, as amended from time to time in accordance with the amendment provisions of the Client Account Agreement.

Moving Fractional Shares

A Fractional Share can be transferred between your Questrade accounts in-kind but cannot transferred out of Questrade. In order to transfer it out, the Fractional Share must be liquidated, and the cash proceeds can be transferred, which may have tax consequences.

Trading Fractional Shares

Only market orders (of one day duration) are permitted for Fractional Share trading. The minimum dollar amount to purchase a Fractional Share is one dollar ($1) and the minimum dollar amount to sell a Fractional Share is 1 cent ($0.01), in each case in the currency in which the security trades. Orders may be placed at any time but will only execute during market hours in accordance with Questrade's Best Execution Policy.

Order Execution and Servicing

Orders for Canadian-listed Fractional Shares are routed by Questrade to National Bank Financial Inc. (“NBF”), which executes and services those Fractional Share transactions. Orders for US-listed Fractional Shares are executed and serviced through Raptor Trading Systems Inc.

Holding Fractional Shares

Questrade records the quantity of Fractional Shares traded or otherwise held in a brokerage account down to four decimal places. Any Fractional Share entitlement of less than 0.0001 is not supported on Questrade's platform and will not be distributed.

Shareholder Rights

Fractional Shares do not bestow voting rights or the ability to participate in other corporate actions such as a grant of rights or an offer to tender. Voting rights typically accompany whole share holdings. If you purchase enough Fractional Shares to make a whole share, you would then be entitled to exercise any voting rights or make any voluntary elections accompanying such whole share holding.

Dividends

A Fractional Share holding may entitle you to receive a cash dividend that is proportionate to the fraction of the whole share held. Any cash dividend entitlement for a Fractional Share must be equal to or greater than 1 cent ($0.01), or will not be paid. A Fractional Share may be able to participate in other mandatory corporate actions (splits, reverse splits, share dividends), subject to the four decimal place holding limit.

Dividend Reinvestment Plan

When you enroll in a Dividend Reinvestment Plan (DRIP) if available for an underlying security, if you hold a Fractional Share of that security, any cash dividend entitlement will be reinvested entirely to acquire additional shares of the security and may include investment in Fractional Shares up to the four decimal place holding limit. Otherwise, in the absence of any Fractional Shares held in the underlying security, the dividend will be reinvested to acquire whole shares of that security, and any remainder will be paid as a cash dividend.

Learning Resources

Educational resources about Fractional Share trading, including how Fractional Share orders are executed and how dividends and corporate actions are treated, are available on the Questrade website and through Questrade’s Help Centre.