Best DRIP brokers: discount brokerages with free dividend reinvestment program

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. This broker's dividend reinvestment plan is free of charge.

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
  • Fee-free IRAs
  • Free DRIPs (dividend reinvestment plans)
  • Low cost professional portfolio management

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Ally Invest Promotion

Up to $3,500 cash bonus + commission free trades for new accounts.

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. The brokerage firm's dividend reinvestment plan is completely free.

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 450 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.)
  • 296 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

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TD Ameritrade Promotion

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

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. This discount broker dividend reinvestment program has no charge.

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

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Etrade Promotion

At E*TRADE, get $6.95 trades + 65₵ per options contract.


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

  • FREE stocks, mutual funds, and ETF trading commissions
  • $0 minimum to open an account
  • 11,000 mutual funds and fixed income investments to choose from
  • No account maintenance or inactivity fees
  • No annual or setup fees for IRA accounts
  • Free dividend reinvestment plan (DRIP)
  • Easy to use, clean website

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Firstrade Promotion

$0 commissions + up to $200 in transfer fee rebates.

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 brokerage 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

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Vanguard Promotion