DRIP Brokers For No-Fee Dividend Reinvesting in 2023

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

  • $0 or very low commissions
  • $0 to open an account
  • No minimums, or maintenance, or hidden fees
  • Free real-time quotes
  • Fee-free IRAs
  • Free DRIPs (dividend reinvestment plans)
  • Low cost professional portfolio management

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$0 commissions + $75 transfer fee credit at Ally Invest.

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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

  • $0 commissions on stocks and ETFs
  • Very few fees and no surcharges
  • Large and well-known company with 450 local branches
  • Excellent trading platform called Thinkorswim
  • 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.)
  • Large number of mutual funds - around 13,000 available; 4,200 NTF (no-transaction fee) funds
  • Free DRIP (dividend reinvestment plan)
  • No-fee IRA accounts

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$0 commissions + transfer fee reimbursement.

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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. At this top DRIP broker, 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.

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Firstrade Account Pros

  • FREE stocks, mutual funds, and ETF trading commissions
  • $0 minimum to open an account
  • 11,000 mutual funds 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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Get up to $4,000 cash bonus + $200 in ACAT rebate!

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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
  • 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)
  • No ACAT fee

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M1 Finance
M1 Finance DRIP Program

Instead of a Dividend Reinvestment Plan, M1 Finance offers something called auto-invest. With this system, once an account’s cash balance reaches $10, the free cash balance is automatically invested in Pies.

A Pie is a basket of investments, either stocks or ETF’s or a combination. M1 creates its own Pies, and customers of the broker can create their own. When cash is invested in a Pie, either from a dividend or a deposit, the funds are allocated to target percentages.

M1 Finance DRIP

M1 Finance Account Pros

  • FREE stocks and ETF trading 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)
  • Lowest margin rates

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Get $10 cash bonus for $100 deposit at M1 Finance.

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About the Author
Arthur Chachuna is professional personal finance blogger, and the owner of Brokerage-Review.com. He has been an avid investor for 23 years, and has background in both applied math and programming.