Here is a list of every broker I’ve tested, including those that will round up reverse splits and those that do not. While I do earn money from affiliate links from some of these brokers, I only recommend those that I personally use to trade reverse splits, and I only link to the deal that gives YOU the best sign up rewards.
Quickly, though: DO NOT USE E-Trade, TD Ameritrade, or TradeStation! E-Trade and TD Ameritrade charge a $38 fee for each reverse split. While TradeStation does round up fractional shares, if you purchase a single share the day before a split, they will charge you a $20 fee and set your account to “liquidate only.” They are not fans of reverse split arbitrage as a strategy.
Brokers That Round Up
Brokers to Avoid
First, brokers that that should be avoided. Some won’t round up, others will but charge big fees to process reverse splits. They are:
- Alpaca: Pays fractional shares, no round up.
- Dough: Used to be on the list, but closed and moved all accounts to Tastyworks.
- E-Trade: $38 fee for each reverse split.
- Interactive Brokers. Pays fractional shares, no round up.
- M1 Finance: They have rounded up at least once, but you have to trade the day before as all trades execute by 9:30am unless you have M1 Plus ($125/year). They also have very few stocks listed, which is why I no longer use them.
- Moomoo. No round up.
- TD Ameritrade. $38 fee for each reverse split.
- SogoTrade. $2.88 commission for each trade, unsure if they round up.
- Stake. Gives equivalent fractional shares, no round up.
- Tradeup. Pays cash-in-lieu, no round up.
- Tradestation. Does round up, but has said they will charge a $20 fee and set to “liquidate-only” any accounts that purchase single shares of a stock the day before a reverse split. This rule is not on their site, but was communicated to several of us over the phone.
- Wellstrade. Charges inactivity fees, and not sure if they round up.