Fractional shares and DRIP

Discussion in 'Interactive Brokers' started by Femo, Apr 5, 2021.

Do you want DRIPS to buy fractional ?

  1. yes

    100.0%
  2. no

    0 vote(s)
    0.0%
  1. Femo

    Femo

    Hey their

    Something which really annoys me with IBKR is, that my DRIP is not using all the Div‘s and buying fractional......this is the only reason for me, where fractional make sense.

    Am i the only one.....?

    Cheers
    Chris
     
  2. smallfil

    smallfil

    Maybe, you did not elect to reinvest fractional shares? Check with your broker. It is not an automatic opt-in. You have to choose to reinvest your dividends otherwise, you get cash for it.
     
    Femo likes this.
  3. smallfil

    smallfil

    Most large companies have their own DRIPs which they have a clearinghouse that handles the buying and selling of shares and reinvesting the dividends. Only drawback is they have set dates they buy stock so, you cannot choose the time shares are bought. Most of their fees are lower than a broker too.
     
  4. Femo

    Femo

    Hi Smallfil
    this for you reply, but i did check the boxes for DRIP, and fractionals are also enabled. The DRIP works, but only for full shares. And fractionals for single orders works as well.

    And looking at the small print with IB, it is indeed like that.....for me stupid....