Firstrade Automatic Investment Plan and Dollar Cost Averaging
If you want a broker for automated investing and dollar-cost averaging, Firstrade could be a great option. Keep reading to see why.
Key Takeaways
• Firstrade’s automated investing is limited to mutual funds, but investors have a lot of control over 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 set up recurring investments for mutual funds they already hold in their portfolio. This allows them to customize amounts, schedules, and purchase methods based on their preferences. It’s also possible to use different funding sources 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 setting up a mutual fund position, you can use Firstrade’s Mutual Fund Periodic Investment Plan Application to create recurring purchase orders. This form allows automated investments in one or multiple funds, with up to five funds allowed per form.
The form is simple to fill out. Choose the funds for your order, then complete the details by selecting your purchase method, such as NAV, LOI, or ROA, setting the amount, and choosing how often you want the investment to occur.
You can also select the specific days or months when investments should be made, which is helpful for dollar-cost averaging or seasonal investing strategies.
Firstrade offers several funding methods for automated investing. You can link a bank account for recurring electronic transfers or use your brokerage account balance as the funding source.
Firstrade Dollar Cost Averaging
Automated investing is an effective way to use dollar-cost averaging, and Firstrade includes features to support this strategy.
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 provides recurring ACH deposits, which are helpful if you plan to fund your mutual fund investments on a regular schedule.
To set up recurring ACH deposits, choose a deposit amount and schedule after linking an ACH bank profile. Firstrade supports weekly, monthly, and quarterly recurring ACH deposits.
Each deposit method has its own processing time. 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 great choice depending on your investment goals. The broker offers competitive fees, a wide variety 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 are important to you, another broker might be a better fit.
Updated on 5/15/2026.
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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