TD Ameritrade auto invest

TD Ameritrade Automatic Investment Plan

2023: Does TD Ameritrade offer automatic investment plan (AIP) contributions? TD Ameritrade dollar cost averaging program setup and review. TDA AIP/DCA fees on ETFs, stocks, and mutual funds monthly/weekly recurring investing.

Can You Set Up an Automatic Investment Plan at TD Ameritrade?

With a brokerage account at TD Ameritrade, it’s possible to set up an automatic investment plan. Keep reading—we’ll show you how.

Overview of Automatic Investing and Dollar-Cost Averaging

If you plan on making regular contributions to a brokerage account, you can put these deposits on autopilot so that you don’t have to manually make transfers and purchases every time you want to add to your nest egg. This is true both of cash deposits into an account and recurring purchases of securities.

Dollar-cost averaging simply means that purchases of an investment are made with whole dollars instead of whole shares, which is the traditional method. The idea is that by using whole dollars, more shares are purchased when the price or NAV of the security is low. Because all mutual funds trade in whole dollars, it’s easy to use dollar-cost averaging with them.

Periodic Deposits at TD Ameritrade

The first thing you want to do is get some cash coming into your TD Ameritrade securities account so that you can invest it. TD Ameritrade’s online ACH form has a frequency menu so that you can set up recurring transfers from your external bank account into your brokerage account.

TD Ameritrade Recurring Investment

Available frequencies include weekly, every other week, monthly, quarterly, annual, and semi-annual. Both taxable accounts and IRAs can establish a recurring deposit schedule. Keep in mind that for an IRA, the total annual deposit amount cannot exceed a certain level. It’s possible to establish start and end dates for a recurring deposit schedule so that deposits are turned off at some point.

Some account types, like solo 401(k) plans, are not eligible for automatic deposits.

To locate the digital transfer form on the TD Ameritrade website, hover over the My Account tab in the top menu with your cursor. In the drop-down menu, find the Deposits & Transfers section. Within this section, click on the link for Deposit (for regular taxable accounts) or Contribution (for IRAs). This will give you the ACH form where you can establish a recurring transfer schedule.

Open TD Ameritrade Account

Open TD Ameritrade Account

Periodic Investing at TD Ameritrade

With cash coming into your brokerage account on a regular basis, you’ll want to invest it. As with the deposits themselves, you can either do the investing manually or you can establish a periodic investing plan for mutual funds. Automatic investing is not available at TD Ameritrade for stocks or exchange-traded funds.

To establish systematic purchases of a mutual fund, you first must hold the fund in your account. This means you first must purchase the fund. Once the fund is in your account, you have to call TD Ameritrade and set up recurring transactions over the phone. Unfortunately, there is no online tool to do this.

It’s possible under TD Ameritrade’s service to establish recurring purchases, recurring exchanges, and recurring sales for a fund. However, a mutual fund must permit such transactions. Not all fund families do, and those that do may have their own rules that govern periodic transactions.

After setting up systematic transactions on a fund, they will continue until you request such transactions to be canceled. The cancellation request must be made in writing, and all account owners must sign the letter. The letter will go into effect one business day after TD Ameritrade receives it.

The letter can be faxed, emailed, snail mailed, or uploaded to TD Ameritrade through the Message Center. This area will be found under the Client Services tab on the website.

It’s also possible to edit an existing periodic transaction. You’ll need to contact TD Ameritrade to do this.

TD Ameritrade does have a $50 transaction minimum on recurring purchases, exchanges, or sales.

Open TD Ameritrade Account

Open TD Ameritrade Account

Fund Family Example

T. Rowe Price is one fund family that permits periodic purchases of its funds. The company has a $100 minimum on such transactions, which is a little higher than TD Ameritrade’s minimum.

Robo Accounts Unavailable

Although dollar-cost averaging was possible with a robo account at TD Ameritrade, these account types has been discontinued, so systematic investing in these accounts is no longer possible.

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About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for, Chad can usually be found managing his portfolio or building a new home computer.