Firstrade Automatic Investment Plan and Dollar Cost Averaging
If you want a brokerage firm for automated investing and dollar-cost averaging, Firstrade may be a strong choice. Read on to see why.
Key Takeaways
• Firstrade’s automated investing is limited to mutual funds, but investors get a lot of flexibility with amounts, schedules, and purchase methods.
• You can set up dollar-cost averaging plans and choose to reinvest dividends and capital gains.
• Automated ACH deposits are available, and Firstrade’s Instant Buying Power feature can provide limited early access to deposited funds.
• The broker’s fees are competitive, and it offers a broad range of mutual funds.
Is Automated Investing Available at Firstrade?
Firstrade offers automated investing, but it only applies to mutual funds. Although stocks and ETFs don’t have this option, the mutual fund service works well. Here’s how it functions.
Firstrade customers can create recurring investments for mutual funds they already hold in their accounts. This gives them the ability to adjust amounts, schedules, and purchase methods based on their needs. Different funding sources can also be used for these investments.
However, Firstrade doesn’t prominently advertise this feature on its website, so many users may not know it exists. To sign up for automated investing, you’ll need to fill out the Mutual Fund Periodic Investment Plan Application, which is available in the Form Center under the Support section.
Form Details
After you establish a mutual fund position, Firstrade’s Mutual Fund Periodic Investment Plan Application can be used to set up recurring buy orders. This form supports automated investments in one or more funds, with up to five funds allowed on each form.
The form is easy to complete. Select the funds for your order, then fill in the details by choosing the purchase method, such as NAV, LOI, or ROA, entering the amount, and selecting how often the investment should take place.
You can also choose the specific days or months when investments should occur, which can be useful for dollar-cost averaging or seasonal investing strategies.
Firstrade provides several funding choices for automated investing. You can connect a bank account for recurring electronic transfers or use the cash balance in your brokerage account as the funding source.
Firstrade Dollar Cost Averaging
Automated investing is a useful way to apply dollar-cost averaging, and Firstrade includes features that can help with this approach.
When setting up a mutual fund, you can choose to reinvest dividends and capital gains back into the same fund. This reinvestment can support compounding, while the periodic fixed-dollar purchase plan is the main dollar-cost averaging feature.
Firstrade Automated Deposits
Firstrade also offers recurring ACH deposits, which can be helpful if you want to fund your mutual fund investments on a regular schedule.
To create recurring ACH deposits, link an ACH bank profile first, then choose the deposit amount and schedule. Firstrade supports weekly, monthly, and quarterly recurring ACH deposits.
Each deposit method has its own processing timeline. ACH transfers can take several business days to clear, and check deposits are generally available for trading on the fifth business day after a successful deposit. However, Firstrade’s Instant Buying Power feature can provide early access to up to $1,000 on an initial ACH deposit after the deposit request is processed. For later ACH deposits, instant buying power is based on current account equity.
Is Firstrade Good for Automated Investing?
Firstrade could be a strong choice depending on your investment goals. The broker offers competitive fees, a large selection of mutual funds, and a solid automated investment feature.
However, Firstrade does not offer robo-advisory services, portfolio rebalancing, or automated stock and ETF purchases. If those features matter to you, a different broker may be a better match.
Updated on 9/5/2026.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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