Smith took a 5-3 lead, without missing a dart on a double, but couldn't create himself more chances on a double. Wade outscored 'Smudger', and won three legs on the spin to claim victory.
Steve West beat Darren Webster after a legdecider. West hit a stunning 12-dart leg in the 11th leg to book his place in the third round. Gerwyn Price overcame Mike de Decker 6-2, while Stephen Bunting lost 4-6 to Andy Boulton.
Click here for more information about the Gibraltar Darts Trophy.
Saturday June 9 Second Round Afternoon Session (1pm local time, 12pm BST) Stephen Bunting (91.72) 4-6 (91.61) Andy Boulton
Gerwyn Price (91.45) 6-2 (86.11) Mike De Decker
Darren Webster (90.25) 5-6 (96.61) Steve West
James Wade (85.61) 6-5 (88.67) Ross Smith
Simon Whitlock v Adam Huckvale
Jonny Clayton v Hannes Schnier
Ian White v Max Hopp
Daryl Gurney v Brendan Dolan