TradeStation reinvest dividends

TradeStation DRIP (Dividend Reinvestment) in 2024


TradeStation dividend reinvestment program fee and enrollment. TradeStation DRIP plan for stocks, mutual funds, ETFs, and ADRs. Is it free?


TradeStation DRIP Plans


A dividend reinvestment plan, or DRIP, provides an easy way to reinvest cash dividends from stocks and exchange-traded funds into additional shares of the same securities.

This concept is modeled after mutual funds, which have long offered reinvestment options for cash distributions. Since mutual funds trade in fractional shares, it is simple for them to issue new shares from dividends or capital gains. This flexibility is essential, as the value of most distributions does not usually amount to a whole share.


How a DRIP System Works


Stocks and ETFs don’t normally trade in fractional shares, so brokers needed a way to allow dividend reinvestment. With a DRIP, the broker uses the cash dividend to buy whole shares if possible. Any leftover amount that isn’t enough to buy a full share is credited to the customer’s account as a fractional share based on the stock’s current price.

When multiple customers receive dividends from the same stock, the broker can pool these funds to buy whole shares. As accounts accumulate enough fractional shares, the broker converts them into full shares for the customers.


TradeStation Promotion



Visit Tradestation Website


DRIP Service at TradeStation


Unfortunately, TradeStation does not offer DRIP services, even for customers willing to pay for them. This is a significant drawback, especially since many of TradeStation’s users are stock traders who could benefit from dividend reinvestment.

TradeStation also does not allow mutual fund distributions to be reinvested. Instead, these distributions are deposited as cash into the account’s core position. This is disappointing, as most discount brokers offer mutual fund reinvestment options.

If you would like to voice your concerns about this issue, you can contact TradeStation at 1-800-770-4049. With enough customer requests, the broker might consider adding DRIP services in the future. This would be especially helpful for stock and ETF traders, given that many of these investments pay dividends regularly, sometimes even more than once a year.


Best Brokers With DRIP





DRIP Service at Other Brokers


Many brokers today offer DRIP services at no cost. WellsTrade, Merrill Edge, Vanguard, and Interactive Brokers all provide DRIP programs. At WellsTrade, Merrill Edge, and Vanguard, the service is free. Interactive Brokers applies its regular commission to each dividend reinvestment.

Other brokers that offer DRIP services for stocks, ETFs, and mutual funds include E*Trade, Charles Schwab, and TIAA. The enrollment process varies across brokers. For example, Charles Schwab provides a simple online form for users to enroll or update DRIP preferences. In contrast, TIAA requires clients to complete a paper form, which must be submitted by fax or mail.


TradeStation Review


Tradestation rating

Continue to Review of TradeStation.


Updated on 10/15/2024.


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.