Robinhood Recurring Investments

Robinhood Automatic Investing Plan (Recurring Investments)


2022: Does Robinhood offer automatic investment plan (AIP) contributions and dollar cost averaging program (DCA). Robinhood monthly/weekly recurring investing in ETFs, stocks, and mutual funds.



Does Robinhood Offer an Automatic Investment Plan?


If you’re manually moving cash into Robinhood and entering orders, it’s time to consider putting everything on autopilot. The brokerage firm does have tools for this. Read on for the details.


Robinhood Auto Investing Information


Robinhood customers can set up recurring purchases of stocks, ETFs, and cryptocurrencies. The broker doesn’t charge any fees for this service, and whole dollars can be used (actually must be used in systematic purchases), which makes such transactions a form of dollar-cost averaging.

It’s also possible to establish recurring transfers of cash into a Robinhood brokerage account without auto investing the money.


Setting Up Periodic Transfers of Money on Robinhood


Using Robinhood’s website or mobile app, it’s not only possible to move money into or out of a brokerage account, it’s also possible to put these transfers on autopilot so they occur indefinitely on a fixed schedule.

On the mobile app, tap on the little man in the bottom menu and then hit the three horizontal lines. They’re in the upper-right corner. On the next page, tap on the Transfers link. On the Transfers page, there is another link for Automatic Deposits. Tap on this and you’ll be able to establish systematic deposits into your Robinhood account.

There are four transfer frequencies:

- Weekly
- Semi-monthly
- Monthly
- Quarterly

Select whichever one you want and enter a deposit amount. You also need to select an external bank account if you have more than one linked. If you don’t have any linked, you can add one on the Automatic Deposits page. Robinhood uses Plaid to connect a checking or savings account, and this will require entering login credentials for the deposit account.


Robinhood Recurring Investing


On the website, the process is much the same. Click on the Account link in the top menu and then select the Transfers tab on the new page. On this page, you’ll be able to link an external bank account and establish recurring deposits into Robinhood with the same four frequency choices.


Open Robinhood Account



Open Robinhood Account


Setting Up Periodic Investments on Robinhood


Recurring cash transfers into Robinhood that are established using the method discussed above don’t buy any assets. To establish periodic purchases of assets, you need to fill out a trade ticket and submit an order. The order ticket has an integrated trade type just for this, so there’s not much else to do.

On the website, Robinhood’s trade ticket sits in the upper-right corner. To add a ticker symbol to it, you first need to enter the symbol in the search field, which appears in the middle-top of the screen.

Once the ticker symbol has been added to the ticket, you need to select the right order type. Click on the down arrow next to the ticker symbol and select Recurring Investment. The order form will automatically add necessary fields for this trade type. They include:

- Starting date
- Amount
- Frequency
- Source of payment
- Backup source (if desired)

The source of the payment can be either the free cash balance in the brokerage account or an external bank account. If you have transferred cash into your Robinhood account using periodic cash deposits (discussed above), you could use the cash balance. Alternatively, you can set up systematic purchases to withdraw funds from the linked bank account automatically. Each purchase will pull funds from the bank account. Just select the checking or savings account in the Source of payment field on the order ticket. A backup source cannot be specified if bank account is selected as the source of payment.

Frequencies on the order ticket are a little different than the frequency for auto transfers. The trade form has:

- Every market day
- Once a week
- Semi-monthly
- Monthly

On the mobile app, the trade selections are the same, although the steps are a little different. First, you need to be on an asset’s profile page. Once there, tap on the upper-right corner to select Recurring Investment under Conditional Orders. Then go through the pages making the selections you want. These steps are the same for securities and cryptocurrencies.

Recurring purchases for stocks and ETFs are processed between 12 noon, EST, and market close on the scheduled date. Crypto systematic purchases are processed between 2:30 and 4:00 pm, EST.

Volatility in the crypto market could cause a recurring crypto order to be skipped. Systematic orders of digital currencies are placed as limit orders collared up to 1% higher than the last trade price.


Brokers With Automatic Investing




DRIP Is Also on Tap


Robinhood offers dividend reinvesting for assets that pay dividends. This is another way to set up automatic purchases of securities. To turn DRIP on, open the mobile app and tap on the little guy in the bottom-right corner. Next, tap on the menu icon in the upper right. Then, select the Investing link. Scroll down on this final page to find DRIP settings. There is no charge for Robinhood’s DRIP service.


Open Robinhood Account



Open Robinhood Account

Updated on 3/26/2022.
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 Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.