ACH Transfer Brokers 2024
ACH (Automated Clearing House) transfers are the modern-day equivalent of paper cheques, just faster, cheaper and more reliable, making them particularly popular with US traders looking to fund investment accounts.
Whilst other countries have their own mechanisms for electronic transfers, for example, BACS in the UK, the ACH system in the US distinguishes itself through its scale and use across a broad spectrum of transactions, notably online trading. In fact, the ACH Network processed over 30 billion transactions in 2022 alone, according to Nacha.
We’ve pinpointed the best brokers that accept ACH transfers. Every platform recommended supports deposits to trading accounts using the ACH system.
Best ACH Transfer Brokers
Following our tests, these are the 10 top brokers accepting ACH transfers:
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1
FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2
NinjaTrader
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:50NFA, CFTCForex, Stocks, Options, Commodities, Futures, CryptoNinjaTrader Desktop, Web & Mobile, eSignalACH Transfer, Debit Card, Wire Transfer, ChequeUSD -
3
Interactive Brokers
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$0$1001:50FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFMStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, CryptocurrenciesTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentralCheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit CardUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF -
4
eToro USAInvest $100 and get $10Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk. https://www.daytrading.com/ is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$100$10SEC, FINRAStocks, Options, ETFs, CryptoeToro Trading Platform & CopyTraderACH Transfer, Debit Card, PayPal, Wire TransferUSD -
5
OANDA USCFDs are not available to residents in the United States.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:50NFA, CFTCForex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)OANDA Trade, MT4, TradingView, AutoChartistWire Transfer, Visa, Mastercard, Debit Card, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD -
6
MoomooGet up to 15 free stocks worth up to $2000
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$0$01:2SEC, FINRA, MAS, ASIC, SFCStocks, Options, ETFs, ADRs, OTCsDesktop Platform, Mobile AppWire Transfer, ACH TransferUSD, HKD, SGD -
7
Plus500 USWelcome Deposit Bonus up to $200Trading with leverage involves risk.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.0 LotsCFTC, NFAFutures on Forex, Commodities, Cryptos, Indices, Interest RatesWebTrader, AppACH Transfer, Wire Transfer, Debit Card, Mastercard, VisaUSD -
8
UpholdTerms Apply. Cryptoassets are highly volatile. Your capital is at risk.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$0$1CryptosDesktop Platform, Mobile AppWire Transfer, ACH Transfer, Bitcoin Payments, Debit Card, Credit Card, Mastercard, Visa, Ethereum PaymentsUSD, EUR, GBP -
9
FirstradeDeposit Bonus Up To $4000
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$0$1SEC, FINRAStocks, ETFs, Options, Mutual Funds, Bonds, Cryptos, FixedTradingCentralACH Transfer, Wire Transfer, Cheque, Automated Customer Account Transfer ServiceUSD -
10
Gemini
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.00001 BTCNYDFS, MAS, FCACryptosActiveTrader, AlgoTrader, TradingViewBitcoin Payments, Credit Card, Wire Transfer, Visa, Mastercard, Silvergate Bank Transfer, Ethereum Payments, ACH Transfer, PayPal, EtanaUSD, EUR, GBP, CAD, AUD, HKD, SGD
Here is a summary of why we recommend these brokers:
- FOREX.com - Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
- NinjaTrader - NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.
- Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
- eToro USA - eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.
- OANDA US - OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.
- Moomoo - Moomoo is an SEC-regulated app-based investment platform that offers a straightforward and affordable way to invest in Chinese, Hong Kong, Singaporean, Australian and US stocks, ETFs and other assets. Margin trading is available and the brand offers a zero-deposit account as well as several bonuses.
- Plus500 US - Plus500 is a well-established broker that entered the US market in 2021. Authorized by the CFTC and NFA, it provides futures trading on forex, indices, commodities, cryptocurrencies, and interest rates. With a 10-minute sign-up, a manageable $100 minimum deposit, and a straightforward web platform, Plus500 continues to strengthen its offering for traders in the US.
- Uphold - Uphold is a digital asset platform offering a range of services, from crypto trading and staking to payment cards that provides rewards and easy multi-currency payments. The company was established in 2015 and has enabled $4+ billion in transactions. Uphold is now active in 180+ countries and deals in 200+ crypto and fiat currencies.
- Firstrade - Firstrade is a US-headquartered discount broker-dealer with authorization from the SEC. The company is also a member of FINRA/SIPC. With welcome bonuses, powerful tools and apps, plus commission-free trading, Firstrade Securities is a popular and top-tier online brokerage. It is also quick and easy to open a new account.
- Gemini - Gemini is a cryptocurrency exchange set up in 2014 by the Winklevoss brothers, known for their early involvement in Facebook. The exchange is among the world’s 20 largest and most popular. Gemini clients can trade and stake 110+ cryptocurrencies, with derivatives trading available in some jurisdictions, an advanced proprietary platform and additional features including an NFT marketplace.
ACH Transfer Brokers Comparison
| Broker | Minimum Deposit | Instruments | Platforms | Leverage |
|---|---|---|---|---|
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$100 | Forex, Stocks, Futures, Futures Options | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral | 1:50 |
|
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$0 | Forex, Stocks, Options, Commodities, Futures, Crypto | NinjaTrader Desktop, Web & Mobile, eSignal | 1:50 |
|
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$0 | Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral | 1:50 |
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|
$100 | Stocks, Options, ETFs, Crypto | eToro Trading Platform & CopyTrader | - |
|
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$0 | Forex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA) | OANDA Trade, MT4, TradingView, AutoChartist | 1:50 |
|
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$0 | Stocks, Options, ETFs, ADRs, OTCs | Desktop Platform, Mobile App | 1:2 |
|
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$100 | Futures on Forex, Commodities, Cryptos, Indices, Interest Rates | WebTrader, App | - |
|
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$0 | Cryptos | Desktop Platform, Mobile App | - |
|
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$0 | Stocks, ETFs, Options, Mutual Funds, Bonds, Cryptos, Fixed | TradingCentral | - |
|
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$0 | Cryptos | ActiveTrader, AlgoTrader, TradingView | - |
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, Stocks, Futures, Futures Options |
| Regulator | NFA, CFTC |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Minimum Deposit | $100 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
- With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
Cons
- Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
- Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
NinjaTrader
"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."
Tobias Robinson, Reviewer
NinjaTrader Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Forex, Stocks, Options, Commodities, Futures, Crypto |
| Regulator | NFA, CFTC |
| Platforms | NinjaTrader Desktop, Web & Mobile, eSignal |
| Minimum Deposit | $0 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:50 |
| Account Currencies | USD |
Pros
- You can get thousands of add-ons and applications from developers in 150+ countries
- Traders can get free platform access and trade simulation capabilities in the unlimited demo
- Low fees are offered, with $50 day trading margins & commissions from $.09 per micro contract
Cons
- There is a withdrawal fee on some funding methods
- The premium platform tools come with an extra charge
- Non forex and futures trading requires signing up with partner brokers
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Interactive Brokers Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies |
| Regulator | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral |
| Minimum Deposit | $0 |
| Minimum Trade | $100 |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
- IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries, most recently the Saudi Stock Exchange.
- The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.
Cons
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
- TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
eToro USA
"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."
eToro USA Quick Facts
| Bonus Offer | Invest $100 and get $10 |
|---|---|
| Demo Account | Yes |
| Instruments | Stocks, Options, ETFs, Crypto |
| Regulator | SEC, FINRA |
| Platforms | eToro Trading Platform & CopyTrader |
| Minimum Deposit | $100 |
| Minimum Trade | $10 |
| Account Currencies | USD |
Pros
- The low minimum deposit and straightforward account opening process means beginners can get started quickly
- The online broker offers an intuitive social investment network with straightforward copy trading on cryptos
- Investors can access Smart Portfolios for a more hands-off approach, covering a range of sectors and markets such as renewable energy and artificial intelligence
Cons
- Average fees may cut into the profit margins of day traders
- There's no MetaTrader 4 platform integration for traders who are accustomed to using third-party charting tools
- There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
OANDA US
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
OANDA US Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Forex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA) |
| Regulator | NFA, CFTC |
| Platforms | OANDA Trade, MT4, TradingView, AutoChartist |
| Minimum Deposit | $0 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD |
Pros
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
- Seasoned day traders can access industry-leading tools, including an MT4 premium upgrade and advanced charting provided by MotiveWave
- OANDA is a reliable, trustworthy and secure brand with authorization from tier-one regulators including the CFTC
Cons
- There's only a small range of payment methods available, with no e-wallets supported
- It's a shame that customer support is not available on weekends
- The range of day trading markets is limited to forex and cryptos only
Moomoo
"Moomoo remains an excellent choice for new and intermediate stock traders who want to build a diverse investment portfolio. What really stands out is the broker's user-friendly app and the low trading fees."
Moomoo Quick Facts
| Bonus Offer | Get up to 15 free stocks worth up to $2000 |
|---|---|
| Demo Account | Yes |
| Instruments | Stocks, Options, ETFs, ADRs, OTCs |
| Regulator | SEC, FINRA, MAS, ASIC, SFC |
| Platforms | Desktop Platform, Mobile App |
| Minimum Deposit | $0 |
| Minimum Trade | $0 |
| Leverage | 1:2 |
| Account Currencies | USD, HKD, SGD |
Pros
- There are reduced options contract fees from $0.65 to $0
- There is no minimum deposit requirement making the broker accessible for beginners
- It is reassuring that Moomoo holds licenses with the US Securities and Exchange Commission (SEC) and the Monetary Authority of Singapore (MAS), among others
Cons
- It's a shame that there is no 2 factor authentication (2FA), despite the other security features on offer
- There is no negative balance protection, which is a common safety feature at top-tier-regulated brokers
- There is no phone or live chat support - common options at most other brokers
Plus500 US
"Plus500 US stands out as an excellent choice for beginners, offering a very user-friendly platform, low day trading margins, and access to the Futures Academy to enhance trading skills."
Michael MacKenzie, Reviewer
Plus500 US Quick Facts
| Bonus Offer | Welcome Deposit Bonus up to $200 |
|---|---|
| Demo Account | Yes |
| Instruments | Futures on Forex, Commodities, Cryptos, Indices, Interest Rates |
| Regulator | CFTC, NFA |
| Platforms | WebTrader, App |
| Minimum Deposit | $100 |
| Minimum Trade | 0.0 Lots |
| Account Currencies | USD |
Pros
- Plus500 is a publicly traded company with a good reputation, over 24 million traders, and a sponsor of the Chicago Bulls, instilling a sense of trust
- The trading app provides a terrific user experience with a modern design, a clean layout and mobile-optimized charts
- The Futures Academy is an excellent resource for new traders with engaging videos and easy-to-follow articles, while the unlimited demo account is great for testing strategies
Cons
- While Plus500 US continues to broaden its investment offering, it's currently restricted to around 50+ futures with no stocks
- Despite competitive pricing, Plus500 US lacks a discount program for high-volume day traders, a scheme found at brokers like Interactive Brokers
- Although support response times were fast during tests, there is no telephone assistance
Uphold
"Uphold remains a top choice for crypto investors looking for a one-stop-shop solution to accessing the markets. There are over 250 tokens to buy, sell and trade through flexible platform options."
Uphold Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Cryptos |
| Platforms | Desktop Platform, Mobile App |
| Minimum Deposit | $0 |
| Minimum Trade | $1 |
| Account Currencies | USD, EUR, GBP |
Pros
- Uphold continues to remain ahead of the industry, often being one of the first platforms to list new crypto tokens
- Crypto staking is available on 30+ tokens with above-average rates up to 16%
- The proprietary app is extremely easy to use with a slick design and navigation
Cons
- The charting analysis features on the platform trail specialist exchanges
- Uphold operates with limited regulatory oversight
- Customer service is slow based on tests, with limited contact options
Firstrade
"Firstrade is perfect for beginners looking to trade US stocks with zero commissions. There is a wealth of free education plus premium-quality research, notably through its latest FirstradeGPT tool, plus trading ideas from Morningstar, Briefing.com, Zacks and Benzinga."
Firstrade Quick Facts
| Bonus Offer | Deposit Bonus Up To $4000 |
|---|---|
| Demo Account | No |
| Instruments | Stocks, ETFs, Options, Mutual Funds, Bonds, Cryptos, Fixed |
| Regulator | SEC, FINRA |
| Platforms | TradingCentral |
| Minimum Deposit | $0 |
| Minimum Trade | $1 |
| Account Currencies | USD |
Pros
- Enhanced stock trading environment with overnight trading and fractional shares added
- Excellent broker for budget-conscious traders with low OTC fees
- One of the first brokers to add AI-powered analysis through FirstradeGPT
Cons
- Firstrade focuses on stocks at the expense of forex, limiting diversification opportunities
- Customer support still needs work following testing with no 24/7 assistance
- Visa credit/debit card deposits and withdrawals are not accepted
Gemini
"Gemini’s ActiveTrader platform and TradingView integration make it a good choice for serious crypto traders seeking a reliable charting environment, though we were disappointed by some unnecessary fees and previous security breaches."
Gemini Quick Facts
| Demo Account | No |
|---|---|
| Instruments | Cryptos |
| Regulator | NYDFS, MAS, FCA |
| Platforms | ActiveTrader, AlgoTrader, TradingView |
| Minimum Deposit | $0 |
| Minimum Trade | 0.00001 BTC |
| Account Currencies | USD, EUR, GBP, CAD, AUD, HKD, SGD |
Pros
- The trading app features a user-friendly, modern design and intuitive interface, with an excellent range of charting tools for day traders
- The TradingView integration delivers top-quality tools, including backtesting and algo trading capabilities
- There is a decent range of educational guides and tutorials suitable for beginners
Cons
- There are high fees for some funding methods including a 3.49% fee for card transactions
- The 'convenience fee' for using the mobile app seems arbitrary and makes it inefficient to use this feature
- The exchange has a history of concerning incidents including the collapse of its Earn program and a phishing breach
How Did We Choose The Best ACH Transfer Brokers?
To list the top ACH transfer brokers, we:
- Leveraged our database of 500 brokers, identifying all those accepting ACH payments
- Verified they support ACH deposits and withdrawals for online trading
- Sorted them by their overall rating, blending 100+ data entries with our direct observations
What Is An ACH Transfer?
An ACH payment is the transfer of funds through the Automated Clearing House (ACH).
Transfers are electronic and take place between banks (bank-to-bank). The ACH Network batch processes the transfers, with these large-volume, aggregated transactions typically occurring three times per business day.
Examples of ACH transfers used today include direct deposits from an employer or government benefit program, bill payments and person-to-person transfers. They can also be used to make recurring payments into a savings account such as a college fund or retirement account or crucially, to fund a live trading account.
In recent years, ACH transfers have become an increasingly popular way to fund trading accounts, especially in the US. Many brokers, including popular platforms like Robinhood, accept the payment method, with more set to follow suit.
The primary value of an ACH transfer lies in its security, ease of use and efficiency. They are also usually free. There are no specific requirements and limits for the system, you only need a bank account.
Fees
As a general rule, ACH transfers are free, although this does vary between banks and brokers. Interactive Brokers, for example, does not charge if you want to deposit by ACH transfer, while you get one free withdrawal request per month.
Speed
An ACH transfer is not an instant payment solution. An ACH transfer typically takes between 1-3 business days to be credited, though just how long cannot be predicted easily. In some cases, the money will move on the day the process is initiated but this is not always the case.
Transfers made late on Friday night may not be executed until Monday morning, for example. Some banks may offer same-day processing at an extra fee.
If you see that an ACH funding hold has been placed on your transfer or bank account, it means that the sum is pending approval or processing. The bank has been notified of the transaction but it will take some time to clear, usually hours but it may vary depending on the time of day, it can roll over.
As a means to fund a trading account, you should be aware that this isn’t an instant execution option. Planning ahead is key to ensure funds are accessible when needed, especially for active day traders.
Security
ACH transfers are as secure as the online banking system through which they are processed. As with any e-payment, fraud is a possibility and you should remain vigilant.
However, when compared to sending cash or a cheque in the mail, ACH transfers offer a much safer solution.
Furthermore, there is usually a window of time in which a sender can recall an ACH transaction if it was made in error. The duration of this window will be specific to the bank, so ensure that you are familiar with your bank’s policy.
The option for reversal grants a degree of security to clients and is fairly unique. It is not a luxury afforded with wire transfers, for example. Once these are made they cannot be reversed.
How To Deposit Using ACH Transfer
The exact process will vary depending on the broker, but generally requires navigating to the cashier portal of your trading platform, selecting ‘ACH’ or similar, and following the instructions.
Below are the more specific steps you need to follow at Interactive Brokers as an example:
- Before using ACH you will need to set up a standing instruction via Transfer & Pay (enabling IBKR and your bank to transfer funds electronically).
- To verify your bank you’ll need to supply your account number and routing number.
- You’ll then need to log in to your bank account and enter your username and password to verify your details.
Once complete you can use the payment solution for deposits and withdrawals.
Note, ACH deposits can be held for up to 4 working days after arrival before being credited to your trading account.
Pros & Cons Of Funding Your Trading Account With ACH Transfer
Pros
- ACH transfers are relatively safe and reliable. They are an established and widely used payment method, supported by major financial institutions. Though as with any e-payments, be wary of scams and ensure that you have opted for a reputable bank and broker.
- ACH transfers are usually free. If charges do apply, they tend to be nominal. As any trader will know, hidden fees can crop up anywhere, so it is refreshing to have a low or even no-cost option. When compared to wire transfers, another popular way to fund trading accounts, ACH transfers are much cheaper, albeit wire transfers can be quicker.
- Making regular, recurring payments to trading accounts using ACH transfers is straightforward and much easier than writing out a cheque each time. You will also save yourself the cost of a stamp.
Cons
- ACH transfers can take 1-3 business days to be processed, sometimes longer. This is slow when compared to the multitude of instant transfer options that exist today, and will be of particular interest to day traders. Whilst same-day transfers are becoming increasingly popular, this network still has some way to go.
- Many banks set maximum transfer limits. Limits may be per transaction, daily or weekly. Banks can also impose limits on transfer destinations, for example, international transfers. Most banks cap transfers at $10,000 per day, though this is not a hard and fast rule. For example, Chase Bank offers greater flexibility with a cap of $25,000.
- As ACH transfers are aggregated, some banks will set cut-off times that will need to be adhered to if you wish your transfer to be processed for the next business day. If you miss the cut-off, it could delay the transfer, causing a problem if time is of the essence. Time frames may also vary on weekends (both on Saturday and Sunday) and holidays.
- Not all brokers, banks or services will accept ACH transfers. In contrast, widely available PayPal offers a similar level of security to ACH transfers and is also capped, although, at $100,000 for crypto purchases, it affords traders a greater degree of flexibility
Is ACH Transfer Good For Day Trading?
ACH transfers are a straightforward, cheap and reliable way to fund your trading account. With an increasing number of brokers supporting the payment method, traders can enjoy flexibility in addition to security and convenience.
However, there are some drawbacks to bear in mind. The processing time, 1-3 days, is slower than the multitude of instant-execution options available today. Maximum transfer limits may also present an obstacle for veteran traders looking to deposit larger amounts.
Still, their security, ease of use and low cost mean that traders can get on with the job at hand. We do, however, advise that any trader considering using ACH transfers read up on their bank and broker’s policies to avoid any unexpected fees.
FAQ
Is An ACH Transfer Safe To Use With My Broker?
ACH transfers are secure and reliable, just ensure that you opt for a reputable bank and broker. As with any online payment, scams are in circulation, so be careful and avoid sharing your details with third-party organizations.
How Quickly Will My ACH Transfer Be Processed In My Trading Account?
Although they are reliable and convenient, ACH transfers are not the fastest payment method compared to e-wallets like PayPal, which are typically processed instantly. You can expect to wait 1 to 3 days for the transaction to be processed, which may not suit active day traders.
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