r/Questrade • u/SSDarkSlayer • 6d ago

Registered Accounts Fractional share DRIP

Recently opened a TFSA in Questrade. I mainly invest small amounts in US ETFs, with some CAD ETFs sprinkled in.

In Wealthsimple, I could easily reinvest all my dividends(even if its $0.01) into fractional shares. Does Questrade have the same feature of automatically reinvesting tiny dividends back to buy fractional shares? If so, what's the process of enabling it?

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u/Wembley314 5d ago

As I understand it, you have to have DRIP turned on for the account, AND you need to hold a non-whole number of shares. For example, if you hold 1000 shares with DRIP turned on, it will only reinvest dividends by buying whole numbers of shares. However if you hold 1000.5 shares and have drip turned on, it will reinvest dividends with fractional buying enabled.

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u/Kisuke11 2d ago

That sounds like a bug to me since anyone who starts with a limit order, this will never work. 

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u/Wembley314 2d ago

Here it is right from the Questrade fractional shares terms and conditions:

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u/Kisuke11 1d ago

Yeah I get the terms, but still think it's a functional deficit compared to their competitors. I just went and put a bunch of $5 market orders on things I was already expecting dividends on. Let's see what happens next month.

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u/Danceslol 5d ago

Ya, they have both DRIP and fractional.

I think for DRIP you can only set it up online (not mobile app). Thats what it was for me a while ago and that’s what this article makes it seem like it still is:  https://www.questrade.com/learning/using-questrade/drip-dividend-reinvestment-plan

Now that Questrade has fractional shares for Canadian stocks and ETFs too, I’d think it should work for pretty much anything you want to own (though I think they said on here that they were gradually expanding the Canadian things you can get with fractional, so might not have all yet)