Best DRIP brokers: list of discount stock brokerage companies offering no-fee, free dividend reinvestment program in 2017: Fidelity, Schwab, Merrill Edge, Scottrade, TD Ameritrade, Vanguard and others.



Ally Invest rating

Ally Invest
Ally Invest DRIP Program

At Ally Invest all marginable U.S equities and selected American Depository Receipts (ADR's) priced at $4 or more that trade either on an exchange or quotes on NASDAQ are eligible for DRIP. Dividends are reinvested on your behalf on the dividend payable date by Ally Invest's clearing firm. The reinvested position will reflect in whole and fractional shares. The reinvestment price will be the prevailing market price at the time the order is entered on the payable date.

Ally Invest can set up your entire account so that any eligible security that you currently hold will be subject to DRIP. Any eligible securities that you purchase thereafter will be automatically enrolled in DRIP. A security will need to be enrolled for DRIP prior to the ex-dividend date in order for the dividend to be reinvested.

You can also always request individual positions in your account to be enrolled for DRIP at no charge.


Ally Invest Account Pros

  • Very low commissions
  • No minimums, or maintenance or hidden fees
  • Free real-time quotes
  • Top-rated customer service
  • Best online investor community
  • Fee-free IRAs
  • Free DRIPs (dividend reinvestment plans)
  • Low cost professional portfolio management


Broker Review


Ally Invest Review


Ally Invest Promotion


Switch to Ally Invest and get up to $150 in transfer fees reimbursed.



TD Ameritrade rating

TD Ameritrade

TD Ameritrade DRIP Program

What makes TD Ameritrade one of the best DRIP brokers is that all securities that have dividends can be eligible for a DRIP plan, including ETFs, ADRs, and mutual funds. You can either enroll individual security or enroll the account as a whole.


TD Ameritrade Account Pros

  • Very few fees and no surcharges on stocks under $1, large orders, or after-hours trading
  • Large and well-known company with 126 local branches
  • Two excellent trading platforms available to all clients: Thinkorswim and Trade Architect
  • Users can practice trading without risking real money using PaperMoney virtual trading
  • Easy access to myTRADE online trader community
  • No account maintenance or inactivity fees
  • Free streaming quotes, including Level II
  • Best selection of independent, third-party research from 13 firms (Standard & Poor's, Morningstar, Jaywalk, TheStreet, etc.)
  • 100+ ETFs with no commissions
  • Large number of mutual funds - around 13,000 available; 4,051 NTF (no-transaction fee) funds
  • Free DRIP (dividend reinvestment plan)
  • No-fee IRA accounts


Broker Review


TD Ameritrade Review


TD Ameritrade Promotion


Trade free for 60 days + get up to $600. TDA



Scottrade rating

Scottrade

Scottrade DRIP Program

Scottrade's Flexible Reinvestment Program provides a commission-free way for you to invest dividends from most dividend-paying stocks or exchange-traded funds that you own into most eligible stocks or ETFs. With FRIP, you'll be able to use cash from dividends to buy most securities at no commission in a way that fits your investment strategy. Scottrade is the only company that offers this ability and that makes it one of the best DRIP brokers.

April 11, 2017 Update:

TD Ameritrade, which acquired Scottrade last year, plans to fully integrate Scottrade by September of this year. For this reason it makes more sense to open an account with TD Ameritrade directly and skip possible transition inconveniences. New customers could take advantage of TD Ameritrade's excellent promotion that allows them to trade for free for two months and gives up to $600 bonus.


Scottrade Account Pros

  • No inactivity, account maintenance or hidden fees
  • No-fee IRAs
  • 500+ local branches for in-person assistance
  • Good banking services: savings, CDs, money market, and free checking account that comes with free ATM withdrawals, VISA check card, and first order of checks
  • Free real-time streaming quotes
  • Flexible dividend reinvestment program (DRIP)
  • Large number of no-commission mutual funds available
  • Instant funds deposits


Broker Review


Scottrade Review



Etrade rating

E*trade

Etrade DRIP Program

Most stocks trading above $5 per share are eligible for Etrade free dividend reinvestment brokerage plan. ADRs and ETFs are not eligible. You could sign up specific securities for DRIP plan via Etrade web application.


Etrade Account Pros

  • No account maintenance or inactivity fees
  • Large and well established company
  • Powerful trading tools
  • No IRA account fees, and no minimums with electronic statements and confirmations
  • Low minimums to open accounts: $500 for a regular brokerage account and $0 for a retirement account
  • Investing advice is available by phone or in person
  • No surcharges on large orders or stocks under $1
  • Great research amenities from S&P, MorningStar, Thompson Reuters, Credit Suisse, and Smart Consensus


Broker Review


Etrade Review


Etrade Promotion


At E*TRADE, active traders get $4.95 trades + 50₵ per options contract.



Firstrade rating

Firstrade

Firstrade DRIP Program

All marginable U.S. equities priced above $4.00 per share and selected foreign securities are eligible for Firstrade's free dividend reinvestment brokerage plan. If the dividend amount is insufficient for a share, fractional shares will be received. The reinvested shares will be purchased at the market price on the dividend payment date. Accounts can be set up for dividend reinvestment on the day the security is purchased, but in order to receive the reinvestment for an upcoming dividend, trades must settle by the record date.


Firstrade Account Pros

  • Low stocks and mutual fund transaction commissions
  • $0 minimum to open an account
  • No account maintenance or inactivity fees
  • No annual or setup fees for IRA accounts
  • Free dividend reinvestment plan (DRIP)
  • Easy to use, clean website
  • 12 ETFs are available commission free


Top DRIP Broker Review


Firstrade Review


Firstrade Promotion


None



Vanguard rating

Vanguard

Vanguard DRIP Program

With Vanguard free dividend reinvestment brokerage program you must be a shareholder on the record date of the distribution to receive dividends.

A security's distributions will not be reinvested if the security has a low average daily trading volume or if the corporation is involved in a corporate reorganization or other corporate action, such as a merger.

Only cash dividends from the eligible securities in your account can be used to purchase additional shares. Types of dividends that are ineligible for this program include those from securities held in your name outside your account, optional dividends, and certain special dividends. (Optional dividends allow shareholders to take the dividend in cash, stock, or a combination of cash and stock. Special dividends are paid in addition to normally scheduled dividends.)

Unit investment trusts, American Depositary Receipts (ADRs), foreign equities and certain domestic equities are not eligible for the reinvestment program.

Vanguard Brokerage Services may make a security eligible or ineligible for automatic reinvestment without prior notification to shareholders.


Vanguard Account Pros

  • Low cost and good performance Vanguard mutual funds
  • Commission-free Vanguard ETFs
  • Free dollar-cost-averaging transactions for no-fee mutual funds; for transaction-fee mutual funds dollar-cost-averaging is $3 per transaction, with $100 minimum purchase
  • Free DRIP (dividend reinvestment plan)
  • Low commissions for clients with $500,000+ invested in Vanguard products


Top DRIP Broker Review


Vanguard Review


Vanguard Promotion


None

Updated on 1/24/2017.




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