Frequently Asked Questions

Is it possible to invest in US shares outside the US?

Yes, we enable clients from over 150 countries to invest in US shares.

How do I own a fraction of a share?

Simply by buying less than 1 share. If Apple is trading at $100/share, you can buy 1/100th of an Apple share for $1. Rockalpha Ltd. works with a US regulated stockbroker who "fractionalises" the shares so you can now own very small units of the most famous companies in the world!

Why do fractional share trading?

Trading fractional shares allows you to invest in companies which you may not be able to afford the full share price. It also makes it easier for you to diversify your portfolio by allowing you to trade fractional amounts in multiple companies when you otherwise may have only been able to trade whole shares in one or two companies.

If you enable your account to trade in fractions, you may buy a fraction of a share based on the amount of cash you specify. For example, if you want to spend $500 but one share of the stock you want to buy is currently $1000 you would end up with 0.5 shares. If you would like to short a fractional share, you can do so by specifying the fractional share quantity (for example, sell .25 shares).

Are fractional shares regulated?

Yes, fractional shares are subject to stringent regulations in the United States.

What products can I trade in fractions?

U.S. stocks (and ETFs, where available) listed on NYSE, AMEX, NASDAQ, ARCA, or BATS, as well as OTC Pink U.S. penny stocks with average daily volume above $10 million and market cap above $400 million are available for fractional shares trading.

Non-U.S. stocks are not available for fractional shares trading at this time.

Do I own the stocks I buy?

Yes. All shares you purchase are held by our US clearing firm in a custodial account.

Is RockFlow regulated?

RockFlow is the trading platform name of Rockalpha Ltd. which is a holder of NZ FSP (Financial Service Provider), and under the regulation of relevant NZ laws.

Client assets are held and maintained in escrow, and client assets are segregated from the broker's own funds. Client assets are calculated, confirmed and reconciled on a regular basis on a trading day basis.

The safety of client assets is subject to regular and rigorous review by the regulator, as well as internal and external audits.

Are my account and the funds in my account safe?

Rockalpha uses a tri-party clearing channel, and client assets are held in the accounts of clearing institutions，which are regulated by the Securities and Exchange Commission (SEC).

Without the client's authorization, Rockalpha will not dispose of any assets in the client's account. The transfer of funds to and from the Client's account must be executed by the Client's account in the same name.

If Rockalpha has operational problems, are customer funds affected?

Client assets are segregated from Rockalpha assets and Rockalpha has no right or ability to dispose of any assets in the Client's account without cause.

In the event of operational problems with Rockalpha , client funds remain safe and unaffected. Rockalpha customers' assets are held in trust in a clearing agency account, and the clearing firm holds customers' cash and stock accounts in accordance with FINRA regulations. SIPC (Securities Investor Protection Corporation of America) is responsible for returning client assets if the liquidating firm becomes insolvent and is unable to return client assets.

Do I get dividends?

Yes - shares you purchase on RockFlow will be eligible for dividends if and when a company pays them. Dividends are subject to a withholding tax and this tax is deducted at source (which means it is a tax you have to pay no matter what).

Your fractional shares positions are eligible to receive dividends in the same manner as your full positions on the same stocks. The formula is the position quantity multiplied by the dividend rate (ie. 0.85 shares x 0.75 dividend rate = $0.6375).