Automated investing might be the smartest way to simplify wealth-building. By automating your investing you’re less likely to miss funds as they are withdrawn from your paycheck and  transferred directly into your 401(k) or an investment account. From beginners to sophisticated options traders, automated investing is a crucial strategy to compound investment growth. We’ve designed this guide to help you explore the ways to automate your investing from simply reinvesting dividends to regular transfers into a robo-advisor. 

How to Automate Your Investing 

It’s usually quick and easy to automate your investing. Before setting up the account, review the platform’s FAQ pages for the range of account minimums and potential approvals needed to open an automated investing account. Each platform will have its own process. Next, gather your bank account and personal information, such as your Social Security number. The investment account platform will walk you through the process step-by-step. Here’s what you can expect when setting up your automated investing account:

1. Create an investment account: Account setup involves choosing a user ID and password for the account. Then you’ll select the type of account you prefer, such as a taxable investment or IRA account. Advanced traders that look to use leverage in their swing trading may first need approval to open certain brokerage accounts.
2. Choose your assets: With robo-advisors and micro-investing apps, you’ll answer several questions about your goals, comfort with risk, and time horizon, and the platform will select the assets for you. Workplace retirement accounts provide a list of investments from which to choose, while self-directed investment accounts offer thousands of stocks, bonds, ETFs, and mutual funds. Frequently, you’ll find helpful articles to help you choose your investments on the website’s educational section. 
3. Link your funding account: This is where you choose the checking or savings account for the fund transfer. For this step you’ll need the name of the financial institution, your bank’s routing number, and your account number. With a 401(k), 403(b), or 457 account, this step is unnecessary, as money is automatically transferred from your paycheck into the retirement account. 
4. Set your funding schedule: For robo-advisors, round-up apps, and self-directed accounts, you’ll select how frequently and how much money you wish to transfer from your bank account into the automated investment account. With your workplace retirement account, make sure to set up a large enough transfer to receive the employer match. Also, understand the maximum contribution limit into your 401(k). 

Best Automated Investing Platforms

Platform	Best For	Account Minimum	Fees
	Best Overall, Best for Portfolio Management, Portfolio Contents, & Best for Goal Planning	$500 for investment accounts, $1 for cash accounts, $0 for financial planning	0.25% for most accounts, no trading commission or fees for withdrawals, minimums, or transfers. 0.42%–0.46% for 529 plans
	Best for Beginners & Cash Management	$0, %10 to start investing	0.25% (annual) for investing plan or $4/month fee for balances under 20K, 0.40% (annual) for the premium plan
	Best for Low Costs, Socially Responsible Investing, & Sophisticated Investors	$100 ($500 minimum for retirement accounts)	$0
	Best for Mobile	$500	0.30%
	Best For Education	$1000 or $20,000 with an advisor	0.45% annually of assets under management, assessed monthly. With advisor—0.85%. Discounts available for Bank of America Preferred Rewards participants.

Understand the Top Automated Investment Types

You can set up an automated investment plan in a variety of ways. From robo-advisors to your employer 401(k), we’ll give you the rundown. Choose one or more automated investment types to ensure that you are converting today’s earnings into wealth for tomorrow.

• Robo-advisors: Robo-advisors such as , , , and Schwab Intelligent Portfolios provide a low-fee option for smart investing. You inform the robo-advisor of your goals and timeline and the digital investment manager will create an investment portfolio that meets your needs. Set up an auto transfer into the account, either taxable or retirement, and the robo-advisor keeps your investments allocated according to your preferences. Some robo-advisors offer other services, including access to human financial advisors.
• Employer-sponsored retirement accounts: Most employers provide a way for you to save for retirement through a 401(k), 403(b), or 457 account. You choose a percent of your paycheck to transfer into the account. Some employers also include an additional matching contribution, up to a specific percent. The money is invested in stock, bond, or balanced funds that you select. While in the account, your money grows without being taxed. 
• Dividend reinvestment plans (DRIP): A DRIP is an option within your investment account to have all of your dividends and capital gains payments automatically reinvested in the same asset. By reinvesting your investment income into additional shares, your account value will compound more quickly. 
• Recurring transfer: You can direct your bank to have a specific amount of money regularly transferred from checking or savings into your investment account. The funds can be automatically transferred into taxable investment, retirement, and any financial account on a daily, weekly, monthly, or other recurring schedule. Make sure to avoid overdrawing the linked account.
• Rounding up: and other round-up micro saving and investing apps allow you to link a debit and/or credit card to the app. After linking, select a round-up amount from the next dollar, up to 10 times the original amount. Whenever you spend with that card, the round-up amount will automatically be transferred into your investment account. 

What You Need to Open an Automated Investing Account 

First, find out what information is required to open an automated investing account. 

Personal Information

The personal information and documentation required to complete the onboarding process typically includes:

• Name
• Social Security number (or taxpayer identification number)
• Address
• Telephone number
• E-mail address
• Date of birth
• Driver's license, passport information, or information from other government-issued identification
• Employment status and occupation
• Whether you are employed by a brokerage firm
• Annual income
• Net worth
• Investment objectives and risk tolerance

Minimum Deposits

Fortunately for investors, there are many automated investment accounts with low-minimum deposit requirements. Minimum deposits can range from zero for many well known investment brokerage firms up to $100,000 for the comprehensive robo-advisor, which also includes access to certified financial planners. 

If you are new to investing and just starting out, you might open your automated investing account at a major brokerage firm that doesn’t require a minimum investment, such as , , or . Or, if you’re seeking a robo-advisor with low minimums, SoFi Automated Investing, , , Ally, and Ellevest all require less than $100 to get started. 

Factors to Consider When Opening an Automated Investing Account

With so many choices about how to automate investing, it can be confusing to narrow down your selection. To make the decision easier, evaluate these factors:

Customer service: Phone customer service can be very important for both new and experienced investors. Be aware that some platforms do not offer live customer service. If talking to a human matters to you, then look into live customer service availability and contact times. 

Fees and commissions: Research from Vanguard and other firms has shown a direct correlation between lower fees and higher investment performance. Before investing with any platform, understand the fees you’ll be paying, including management fees and fund expense ratios. Determine whether the services you’re receiving are worth the fees.  

Account minimum: Investigate how much money you’ll need to open the account as well as maintain it. Determine whether there is a minimum balance requirement and if it is suitable for your financial situation. 

Research tools: For self-directed investment accounts, carefully review the screeners, calculators, trading platforms, and research report availability. If you’re a self-directed investor, make certain, before opening an account, that the research tools match up with your needs.