Best DRIP Brokers

2014 best DRIP brokers: online stock brokerage companies offering free (no-fee) dividend reinvestment accounts (including IRA) on stocks and mutual funds



4.5-star brokerage firm rating


Cheapest DRIP Program

All marginable U.S equities and selected American Depository Receipts (ADR's) priced at $4 or more that trade either on an exchange or quotes on NASDAQ are eligible for DRIP. Dividends are reinvested on your behalf on the dividend payable date by our clearing firm. The reinvested position will reflect in whole and fractional shares. The reinvestment price will be the prevailing market price at the time the order is entered on the payable date.

TradeKing can set up your entire account so that any eligible security that you currently hold will be subject to DRIP. Any eligible securities that you purchase thereafter will be automatically enrolled in DRIP. A security will need to be enrolled for DRIP prior to the ex-dividend date in order for the dividend to be reinvested.

You can also always request individual positions in your account to be enrolled for DRIP at no charge.


Cheapest Dividend Reinvestment Broker Pricing


ProductPrice
Stocks and ETFs $4.95
Options $4.95 + $0.65 per contract
Mutual funds $9.95
Bonds $1 per bond with $10 minimum, $250 maximum
Treasuries commission-free
Certificates of Deposit (CDs) $24.95

Investments stocks, options, mutual funds, bonds, CDs, forex, treasuries, ETFs
TradeKing minimum deposit to open account $0 for cash account, $2,000 for margin account
FeesTradeKing fees


TradeKing Account Pros

  • Great commissions
  • No minimums, or maintenance or hidden fees
  • Free real-time quotes
  • Top-rated customer service
  • Low margin rates
  • Best online investor community
  • Fee-free IRAs
  • Free DRIPs (dividend reinvestment plans)
  • Extensive educational resources
  • Low cost professional portfolio management


Cheapest DRIP Broker Review


TradeKing Review



4.5-star brokerage firm rating

Scottrade Review

Scottrade DRIP Program

Scottrade's Flexible Reinvestment Program provides a commission-free way for you to invest dividends from most dividend-paying stocks or exchange-traded funds that you own into most eligible stocks or ETFs. With FRIP, you'll be able to use cash from dividends to buy most securities at no commission in a way that fits your investment strategy.


Free Dividend Reinvestment Broker Pricing


InvestmentsCommissions
Stocks and ETFs $7
Stocks and ETFs broker assisted $32
Stocks and ETFs interactive voice response (IVR) telephone system $32
Options $7 + $1.25 per contract
Mutual funds 3,000+ commission-free NTF funds, $17 for others
CDs, OTC Secondary Corporates, OTC Secondary Municipals,
U.S. Treasury Bills, Notes, Bonds and STRIPS, New Corporate Offerings
subject to a markup or markdown
Listed Corporate Bonds $35 + $3 per bond (minimum investment $1,000)
Unit Investment Trusts (UIT) $50 liquidation fee
Foreign Stocks Transferring In or Out $60 per transaction

Investments stocks, options, mutual funds, CDs, munis, U.S. Treasury, Canadian and foreign stocks, ETFs
Scottrade minimum deposit to open account $2,500 ($0 for IRA accounts)
FeesScottrade fees


Scottrade Account Pros

  • No inactivity, account maintenance or hidden fees
  • No-fee IRAs
  • #1 in customer satisfaction according to JD Power and Associates
  • 500+ local branches for in-person assistance
  • Great support for beginner investors with a massive number of educational resources
  • Online user community
  • Good banking services: savings, CDs, money market and free checking accounts (free ATM withdrawals, VISA check card, and first order of checks free)
  • Free real-time streaming quotes and charts
  • Free dividend reinvestment for mutual funds (but not for stocks)
  • Largest number of mutual funds - over 14,500


Best DRIP Broker Review


Scottrade Review



4-star brokerage firm rating

Etrade Review

Etrade DRIP Program

Most stocks trading above $5 per share are eligible. ADRs and ETFs are not eligible. You could sign up specific securities for DRIP plan via Etrade web application.


Free Dividend Reinvestment Broker Pricing


ProductPrice
Stocks and ETFs $9.99 ($7.99 if making 150+ trades per quarter)
Stocks and ETFs broker assisted $34.99
Options $9.99 + $0.75 per contract ($7.99 + $0.75 if making 150+ trades per quarter)
Mutual funds $19.99
Futures contracts $2.99 per contract, per side + fees
Fixed Incomemarkup or markdown and any transaction fee will be included in the price quoted
Forex No commissions. Etrade receives compensation through the bid/ask spread.
Bonds$1 per bond (minimum $10, maximum $250) for online secondary market trades. Includes Agency bonds, Corporate bonds, Municipal bonds, Brokered CDs, Pass-thrus, CMOs, Asset Backed Securities.

Investments stocks, bonds, mutual funds, futures, forex, fixed income, options, ETFs
Etrade minimum deposit to open account $500 for non-retirement cash account, $0 for retirement cash account, $2,000 for margin account
FeesEtrade fees


Etrade Account Pros

  • No account maintenance or inactivity fees
  • Large and well established company
  • Powerful trading tools
  • No IRA account fees, and no minimums with electronic statements and confirmations
  • Low minimums to open accounts: $500 for cash account, $0 for retirement cash account, $2,000 for margin account
  • Banking products available: checking, savings, money market accounts, CDs, and credit cards
  • No surcharges on large orders or penny stocks
  • Great research amenities from S&P, MorningStar, Thompson Reuters, Credit Suisse, and Smart Consensus
  • Access to trading on 40 foreign exchanges
  • Free streaming quotes
  • Very broad selection of products: 8,000 mutual funds, every ETF sold, over 30,000 bonds, securities from 77 international markets, 1,300 no-load, no-transaction fee mutual funds, and 90+ commission-free ETFs


Best DRIP Broker Review


Etrade Review



3-star brokerage firm rating

Firstrade Review

Firstrade DRIP Program

All Marginable U.S. equities priced above $4.00 per share and selected foreign securities are eligible. If the dividend amount is insufficient for a share, fractional shares will be received. The reinvested shares will be purchased at the market price on the dividend payment date. Accounts can be set up for dividend reinvestment on the day the security is purchased, but in order to receive the reinvestment for an upcoming dividend, trades must settle by the record date.


Free Dividend Reinvestment Broker Pricing


InvestmentsCommissions
Stocks and ETFs $6.95
Stocks, ETFs, and mutual funds broker assisted $19.95
Options $6.95 + $0.75 per contract
Mutual funds $9.95
Treasury Bills, Notes, Municipal and Agency Bonds, Zeros & Strips net yield basis
CDs $30 for primary market CDs, net yield basis for secondary market CDs

Investments stocks, options, mutual funds, bonds, CDs, ETFs
Firstrade minimum deposit to open account $0
FeesFirstrade fees


Firstrade Account Pros

  • $0 minimum to open an account
  • Low mutual fund transaction commission
  • 10,000 mutual funds and fixed income investments to choose from
  • No annual or setup fees for IRA accounts
  • Free dividend reinvestment plan (DRIP)


Top DRIP Broker Review


Firstrade Review



3-star brokerage firm rating

Vanguard review

Vanguard DRIPs

You must be a shareholder on the record date of the distribution to receive dividends.

A security's distributions will not be reinvested if the security has a low average daily trading volume or if the corporation is involved in a corporate reorganization or other corporate action, such as a merger.

Only cash dividends from the eligible securities in your account can be used to purchase additional shares. Types of dividends that are ineligible for this program include those from securities held in your name outside your account, optional dividends, and certain special dividends. (Optional dividends allow shareholders to take the dividend in cash, stock, or a combination of cash and stock. Special dividends are paid in addition to normally scheduled dividends.)

Unit investment trusts, American Depositary Receipts (ADRs), foreign equities and certain domestic equities are not eligible for the reinvestment program.

Vanguard Brokerage Services may make a security eligible or ineligible for automatic reinvestment without prior notification to shareholders.


Free Dividend Reinvestment Broker Pricing


InvestmentsCommissions
Stocks and ETFs $7 for the first 25 trades, $20 for subsequent trades for account with less than $50,000
$7 for account with $50,000–$500,000 invested in Vanguard products (Voyager Services®)
$2 for account with $500,000–$1,000,000 invested in Vanguard products (Voyager Select Services®)
Free for first 25 trades, $2 for subsequent trades for account with $1 million (Flagship Services™)
Options $20 + $1 per contract (Voyager: $7 + $1 per contract; Voyager Select and Flagship: $2 + $1 per contract)
Options for accounts + over $1 million $8 + $1.50 per contract
Mutual funds Vanguard mutual funds - free. All others: Standard -$35; Voyager® and Voyager Select® - $20; Flagship - $8
Certificates of deposit (CDs) Purchase - $5 per $1,000, minimum is $50. Sale - $35 per transaction
Commercial paper $50 per transaction; minimum purchase is $100,000
U.S. Treasury $0.75 per $1,000 face amount, $40 minimum, $75 maximum
Mortgage-backed securities $50 per transaction; GNMA minimum purchase is $25,000

Investments stocks, options, mutual funds, bonds, CDs, foreign securities, insurance, commercial paper, ETFs
Vanguard minimum deposit to open account $3,000
FeesVanguard fees


Vanguard Account Pros

  • Low cost and good performance Vanguard mutual funds
  • Commission-free Vanguard ETFs
  • Free dollar-cost-averaging transactions for no-fee mutual funds. $3 per transaction, minimum purchase $100, minimum two transactions, for transaction fee mutual funds
  • Free DRIPs (dividend reinvestment plans)
  • No ACAT fee


Top DRIP Broker Review


Vanguard Review
This article was updated on 9/26/2014.



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