What to Do When You Can't Sell Partial Shares? Trading Hours, Fees, and Essential Tips

Many small investors buy fractional shares but encounter a big pitfall when trying to sell—they can’t sell their fractional shares. Why does this happen? What are the special rules for trading fractional shares? This article will provide an in-depth analysis of the complete knowledge about buying and selling fractional shares, from trading hours and fees to practical tips, so you no longer have to worry about being unable to sell your fractional shares.

Why Are Your Fractional Shares Always Unsellable? Analyzing Liquidity Challenges

The core reason why fractional shares can’t be sold is—lack of liquidity. Compared to whole shares (which trade in lots of 1,000 shares), a single fractional share transaction can only be up to 999 shares. The trading volume for fractional shares is much lower than for whole shares, resulting in not all stocks having enough counterparties for fractional trades.

Especially for less popular stocks, fractional trading volume is extremely sparse. Even if investors place orders, they may remain unfilled for a long time. According to Taiwan Stock Exchange regulations, if fractional shares are not traded during the trading day, they will not automatically carry over to after-hours trading. Investors need to resubmit their orders. If no one takes the order for multiple days, your fractional shares will be stuck in a “unsellable” situation.

Another reason is trading matching restrictions—after-hours trading only occurs once during a call auction at 14:30, with far fewer chances to match than the continuous auction mechanism for whole shares, greatly reducing the probability of fractional share transactions.

Master Trading Hours and Rules to Improve Fractional Share Liquidity

To improve the situation where your fractional shares can’t be sold, you first need to fully understand the trading rules and schedule for fractional shares. Since late 2020, Taiwan Stock Exchange has opened up intraday fractional share trading, breaking the previous limit of only being able to trade after hours.

Fractional Share Trading Hours and Rules

Advantages of intraday trading include higher matching frequency (once per minute), providing more chances to execute. You can submit a fractional share sell order immediately after the market opens at 9:00, without waiting until afternoon. However, note that intraday orders can only be placed via your broker’s electronic platform, not manually.

After-hours trading allows for phone orders, but only one call auction at 14:30. Unfilled orders are automatically canceled and do not carry over to the next day. So, if you trade after hours, you face a “do or die” risk with a single matching opportunity.

A practical tip: if your fractional shares can’t be sold, try placing a new order during the next intraday session to increase your chances of matching.

Cost Analysis of Fees for Fractional Shares: When Is the Best Time to Enter?

Fees are often overlooked hidden costs. The fee rate for fractional share trading is also 0.1425% of the transaction amount, with a minimum fee usually set at NT$1. This means small-value fractional trades have a relatively high fee ratio.

For example, buying 200 shares of TSMC at about NT$620 per share:

200 × 620 × 0.1425% ≈ NT$176 in fees

If your broker offers a 50% discount, the fee drops to NT$88. But if you only buy 10 shares, the minimum NT$1 fee becomes a significant proportion of your transaction cost.

Major Broker Fee Promotions for Fractional Shares

The best timing to buy or sell is when the transaction amount exceeds NT$10,000, so that the fee percentage remains reasonable. If your fractional share holdings are below NT$5,000 and you want to sell, be prepared for higher relative costs.

Practical Tips to Quickly Liquidate: Convert Fractions to Whole Shares and Price Strategies

When selling fractional shares becomes a real challenge, the following practical tips can help increase your chances:

Tip 1: Convert Fractions to Whole Shares

This is the most effective method to solve the problem of unsellable fractional shares. Suppose you hold 700 shares of Shin-Kong (1582.TW) but can’t find a buyer. You can buy an additional 300 shares to reach 1,000 shares (a round lot), then quickly sell the whole lot in the more liquid market.

Advantages:

• Whole shares have higher trading volume and liquidity
• Faster execution, often during intraday hours
• Many counterparties, no worries about no takers

Disadvantage:

• Requires extra capital to top up to a round lot
• Suitable for investors with spare funds

Tip 2: Use After-Hours Limit Orders at Limit Up Price

In after-hours trading, since only one call auction occurs, to ensure a successful buy, place a limit order at the limit-up price. According to auction principles, the highest bid price gets priority, greatly increasing the chance of execution. Similarly, if you want to sell quickly, place a limit order at the limit-down price for the best chance to execute.

Tip 3: Split Orders to Reduce Risk

Avoid placing all your fractional shares in one order. Instead, divide your order into smaller parts (e.g., 700 shares split into 300 + 200 + 200). This increases the likelihood that at least part of your order will be filled.

Tip 4: Act Early During Intraday Trading

Intraday matching occurs many times more frequently than after hours, significantly increasing your chances. It’s recommended to submit your sell order shortly after the market opens, rather than waiting until near 13:30, to maximize matching opportunities.

The Real Pros and Cons of Fractional Share Investing: What Small Investors Should Know

Advantages

Low Capital Barrier

Fractional shares start at just 1 share, allowing investors to participate with small amounts of money. You can buy in with NT$1,000, making it ideal for salaried workers practicing dollar-cost averaging. This greatly lowers the psychological barrier for small investors to enter the stock market.

High Flexibility

Purchasing fractional shares does not require large upfront capital. You can adjust your holdings flexibly based on market conditions, better managing your assets.

Disadvantages

Poor Liquidity

This is the biggest pain point. Compared to whole shares, fractional shares have limited counterparties. You often face slow sales or need to place multiple orders over days to complete a transaction.

Higher Costs

Although the fee rate is the same (0.1425%), the minimum fee makes small trades disproportionately expensive. Additional service fees may also apply, making total costs higher than trading whole shares. If your total holdings are below NT$5,000, fees can eat into your profits.

Operational Restrictions

• Unfilled fractional orders during the day are not carried over
• After-hours trading only occurs once; unfilled orders are canceled
• You must sell all fractional shares at once; partial sales are not allowed
• Converting fractional shares to whole shares has time limits

Alternatives to Selling Unsellable Fractional Shares: CFD Trading

If you’re frustrated with the limitations of fractional shares, consider Contract for Difference (CFD) trading as an alternative.

CFDs are derivatives that allow you to speculate on price movements without owning the actual stock. Since only margin (usually 5-10%) is required, entry costs are lower:

Example: Buying 5 shares of Google (around $400 each):

• Traditional fractional share: 5 × $400 = $2,000
• CFD (with 5% margin): $2,000 × 5% = $100

Advantages of CFDs:

• Lower initial capital due to margin
• No additional commissions, only spread costs
• High liquidity, no worries about no counterparties
• 24-hour trading, flexible timing

Note: CFDs are settled daily; holding positions overnight incurs overnight interest. Better suited for short-term trading. In contrast, fractional shares are more appropriate for long-term investing. Choose based on your investment style and time horizon.

Summary: From Dilemma to Solution

Unsellable fractional shares are no longer an insurmountable problem. By understanding the correct trading hours (prefer intraday), choosing brokers with better discounts, mastering practical strategies (convert to whole shares, price tactics), you can significantly improve your chances of selling fractional shares.

For small investors, fractional share trading remains a good entry point with limited capital. The key is not to be discouraged by the surface issue of being unable to sell, but to understand the market mechanics and employ flexible strategies and tools. When you can skillfully navigate liquidity challenges, your investment journey truly begins.