Fracker^Ⓡ

DriveWealth’s patent-pending Fracker^Ⓡ technology, built in 2015, allows users to enter orders in notional amounts (currency-based, e.g. $50 USD of Tesla shares) in addition to share quantity (e.g. 10 shares of Tesla). Typically, a notional, or currency-based, order results in a fractional share quantity execution, while a quantity based order is typically for a whole share quantity.

Partners can submit orders to DriveWealth via REST or FIX APIs. When orders are received, DriveWealth manages whole and fractional components of the trade separately:

• Whole share trades are routed to the Market - by DW in an agency capacity
• Fractional components of a trade are routed to DW’s Fracker^Ⓡ - and executed by DW on a principal basis
  • The share price of a mixed capacity trade will reflect the market price of the whole share executed in the market, i.e. the fractional share price for the fractional component of the trade will always be the same as the whole share execution price
• Order executions can go out to 8 decimal places
• Orders will never be executed for more than the submitted share quantity or notional amount
  • Example: when a customer submits a $100 order to buy AMZN the Fracker^Ⓡ calculates the number of shares required to fill the $100 order. If the security price moves during the time between the share calculation and the order execution, the Fracker^Ⓡ will shave off 0.00000001 shares until the total order quantity is equal to or less than the requested $100.
• Dollar-based orders are supported through 2 order types
  • Market orders
  • Market-if-touched orders (See Order Types)

Below are 2 examples of dollar-based orders through the Fracker:

Example 1:

*   Price of Apple = $325
*   Order Amount to buy = $100
*   Order Quantity executed by The Fracker = 0.30769231 shares

Example 2:

*   Price of Apple = $325
*   Order Amount to buy = $500
*   Order Quantity executed away from the Fracker = 1.0 whole share at $325
*   Order Quantity executed by The Fracker = 0. 53846154 shares ($500 - $325)
*   Total Order Quantity executed = 1.53846154 shares