ACH Transfer Brokers 2024

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Written By
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Written By
James Barra
James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.
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Edited By
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William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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Fact Checked By
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Jemma Grist
Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.
Updated

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:

Click a broker for details
  1. 1
    FOREX.com
    Active Trader Program With A 15% Reduction In Costs

    Ratings
    4.9 / 5
    4 / 5
    4.3 / 5
    4.6 / 5
    4.6 / 5
    4.3 / 5
    4.8 / 5
    4.5 / 5
    3.6 / 5
    3.8 / 5

    $100
    0.01 Lots
    1:50
    NFA, CFTC
    Forex, Stocks, Futures, Futures Options
    MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
    Wire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH Transfer
    USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN
  2. 2
    NinjaTrader

    Ratings
    4.3 / 5
    2.8 / 5
    2.9 / 5
    4.3 / 5
    4.5 / 5
    4 / 5
    4 / 5
    3.5 / 5
    3 / 5
    3.2 / 5

    $0
    0.01 Lots
    1:50
    NFA, CFTC
    Forex, Stocks, Options, Commodities, Futures, Crypto
    NinjaTrader Desktop, Web & Mobile, eSignal
    ACH Transfer, Debit Card, Wire Transfer
    USD
  3. 3
    eToro USA
    Invest $100 and get $10
    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
    4.3 / 5
    3 / 5
    3.9 / 5
    3.4 / 5
    4 / 5
    3 / 5
    4.3 / 5
    4.5 / 5
    4.3 / 5
    4 / 5

    $10
    $10
    SEC, FINRA
    Stocks, Options, ETFs, Crypto
    eToro Trading Platform & CopyTrader
    ACH Transfer, Debit Card, PayPal, Wire Transfer
    USD
  4. 4
    OANDA US
    CFDs are not available to residents in the United States.

    Ratings
    4.5 / 5
    3.5 / 5
    2.8 / 5
    4 / 5
    4.5 / 5
    3.5 / 5
    4.3 / 5
    3.8 / 5
    4.7 / 5
    3.7 / 5

    $0
    0.01 Lots
    1:50
    NFA, CFTC
    Forex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)
    OANDA Trade, MT4, TradingView, AutoChartist
    Wire Transfer, Visa, Mastercard, Debit Card, ACH Transfer
    USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD
  5. 5
    Interactive Brokers

    Ratings
    4.5 / 5
    3.5 / 5
    4.5 / 5
    4.3 / 5
    3.3 / 5
    3 / 5
    4.4 / 5
    4.3 / 5
    4.3 / 5
    4.5 / 5

    $0
    $100
    1:50
    FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA
    Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
    Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
    Cheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit Card
    USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF
  6. 6
    Plus500 US
    Welcome Deposit Bonus up to $200
    Trading with leverage involves risk.

    Ratings
    3.5 / 5
    3.7 / 5
    3.5 / 5
    3.3 / 5
    3.3 / 5
    3.5 / 5
    2.8 / 5
    3.5 / 5
    4.1 / 5
    4.3 / 5

    $100
    0.0 Lots
    CFTC, NFA
    Futures on Forex, Commodities, Cryptos, Indices, Interest Rates
    WebTrader, App
    ACH Transfer, Wire Transfer, Debit Card, Mastercard, Visa
    USD
  7. 7
    Moomoo
    Get up to 15 free stocks worth up to $2000

    Ratings
    4.8 / 5
    3.3 / 5
    3 / 5
    3.8 / 5
    3 / 5
    2 / 5
    3.8 / 5
    4.4 / 5
    4.6 / 5
    3.3 / 5

    $0
    $0
    1:2
    SEC, FINRA, MAS, ASIC, SFC
    Stocks, Options, ETFs, ADRs, OTCs
    Desktop Platform, Mobile App
    Wire Transfer, ACH Transfer
    USD, HKD, SGD
  8. 8
    Uphold
    Terms Apply. Cryptoassets are highly volatile. Your capital is at risk.

    Ratings
    3 / 5
    0 / 5
    4.3 / 5
    3.8 / 5
    4.5 / 5
    2.3 / 5
    0 / 5
    0 / 5
    4.6 / 5
    4.4 / 5

    $0
    $1
    Cryptos
    Desktop Platform, Mobile App
    Wire Transfer, ACH Transfer, Bitcoin Payments, Debit Card, Credit Card, Mastercard, Visa, Ethereum Payments
    USD, EUR, GBP
  9. 9
    Firstrade
    Deposit Bonus Up To $4000

    $0
    $1
    SEC, FINRA
    Stocks, ETFs, Options, Mutual Funds, Bonds, Cryptos, Fixed
    Own
    ACH Transfer, Wire Transfer, Cheque, Automated Customer Account Transfer Service
    USD
  10. 10
    Gemini

    Ratings
    2 / 5
    3 / 5
    2 / 5
    2.5 / 5
    3 / 5
    2 / 5
    2.5 / 5
    3 / 5
    0 / 5
    0 / 5

    $0
    0.00001 BTC
    NYDFS, MAS, FCA
    Cryptos
    ActiveTrader, AlgoTrader, TradingView
    Bitcoin Payments, Credit Card, Wire Transfer, Visa, Mastercard, Silvergate Bank Transfer, Ethereum Payments, ACH Transfer, PayPal, Etana
    USD, EUR, GBP, CAD, AUD, HKD, SGD

Here is a summary of why we recommend these brokers:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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 online brokerage. It is also quick and easy to open a new account.
  10. 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

ACH Transfer Brokers Comparison
Broker Minimum Deposit Instruments Platforms Leverage
FOREX.com logo
$100 Forex, Stocks, Futures, Futures Options MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral 1:50
NinjaTrader logo
$0 Forex, Stocks, Options, Commodities, Futures, Crypto NinjaTrader Desktop, Web & Mobile, eSignal 1:50
eToro USA logo
$10 Stocks, Options, ETFs, Crypto eToro Trading Platform & CopyTrader -
OANDA US logo
$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
Interactive Brokers logo
$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
Plus500 US logo
$100 Futures on Forex, Commodities, Cryptos, Indices, Interest Rates WebTrader, App -
Moomoo logo
$0 Stocks, Options, ETFs, ADRs, OTCs Desktop Platform, Mobile App 1:2
Uphold logo
$0 Cryptos Desktop Platform, Mobile App -
Firstrade logo
$0 Stocks, ETFs, Options, Mutual Funds, Bonds, Cryptos, Fixed Own -
Gemini logo
$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 OfferActive Trader Program With A 15% Reduction In Costs
Demo AccountYes
InstrumentsForex, Stocks, Futures, Futures Options
RegulatorNFA, CFTC
PlatformsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
Minimum Deposit$100
Minimum Trade0.01 Lots
Leverage1:50
Account CurrenciesUSD, 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.
  • FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.

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.
  • FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.

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 AccountYes
InstrumentsForex, Stocks, Options, Commodities, Futures, Crypto
RegulatorNFA, CFTC
PlatformsNinjaTrader Desktop, Web & Mobile, eSignal
Minimum Deposit$0
Minimum Trade0.01 Lots
Leverage1:50
Account CurrenciesUSD

Pros

  • NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
  • You can get thousands of add-ons and applications from developers in 150+ countries
  • NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets

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

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."

Rebecca Holden, Reviewer

eToro USA Quick Facts

Bonus OfferInvest $100 and get $10
Demo AccountYes
InstrumentsStocks, Options, ETFs, Crypto
RegulatorSEC, FINRA
PlatformseToro Trading Platform & CopyTrader
Minimum Deposit$10
Minimum Trade$10
Account CurrenciesUSD

Pros

  • eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
  • A free demo account means new users and prospective day traders can try the broker risk-free
  • The broker's Academy offers comprehensive learning materials for beginners to advanced-level investors

Cons

  • There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
  • 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

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."

Rebecca Holden, Reviewer

OANDA US Quick Facts

Demo AccountYes
InstrumentsForex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)
RegulatorNFA, CFTC
PlatformsOANDA Trade, MT4, TradingView, AutoChartist
Minimum Deposit$0
Minimum Trade0.01 Lots
Leverage1:50
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD

Pros

  • There's a strong selection of 68 currency pairs for dedicated short-term forex traders
  • The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
  • The broker offers a transparent pricing structure with no hidden charges

Cons

  • It's a shame that customer support is not available on weekends
  • There's only a small range of payment methods available, with no e-wallets supported
  • The range of day trading markets is limited to forex and cryptos only

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."

Christian Harris, Reviewer

Interactive Brokers Quick Facts

Demo AccountYes
InstrumentsStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
RegulatorFCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA
PlatformsTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
Minimum Deposit$0
Minimum Trade$100
Leverage1:50
Account CurrenciesUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • 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.
  • While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.

Cons

  • 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.
  • 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.
  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.

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 OfferWelcome Deposit Bonus up to $200
Demo AccountYes
InstrumentsFutures on Forex, Commodities, Cryptos, Indices, Interest Rates
RegulatorCFTC, NFA
PlatformsWebTrader, App
Minimum Deposit$100
Minimum Trade0.0 Lots
Account CurrenciesUSD

Pros

  • Plus500 US excels for its low fees with very competitive day trading margins and no inactivity fees, live data fees, routing fees, or platform fees
  • 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 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

  • Although support response times were fast during tests, there is no telephone assistance
  • Plus500 US does not offer social trading capabilities, a feature available at alternatives like eToro US which could strengthen its offering for aspiring traders
  • While Plus500 US continues to broaden its investment offering, it's currently restricted to around 50+ futures with no stocks

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."

Jemma Grist, Reviewer

Moomoo Quick Facts

Bonus OfferGet up to 15 free stocks worth up to $2000
Demo AccountYes
InstrumentsStocks, Options, ETFs, ADRs, OTCs
RegulatorSEC, FINRA, MAS, ASIC, SFC
PlatformsDesktop Platform, Mobile App
Minimum Deposit$0
Minimum Trade$0
Leverage1:2
Account CurrenciesUSD, HKD, SGD

Pros

  • Moomoo's analytics and insights are impressive and detailed compared to other brands
  • The ‘Moomoo Token’ generates dynamic passwords for transaction security - a unique and helpful safety feature
  • The broker offers access to extended pre-market trading hours

Cons

  • There is no negative balance protection, which is a common safety feature at top-tier-regulated brokers
  • It's a shame that there is no 2 factor authentication (2FA), despite the other security features on offer
  • There is no phone or live chat support - common options at most other brokers

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."

Rebecca Holden, Reviewer

Uphold Quick Facts

Demo AccountYes
InstrumentsCryptos
PlatformsDesktop Platform, Mobile App
Minimum Deposit$0
Minimum Trade$1
Account CurrenciesUSD, EUR, GBP

Pros

  • 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
  • UK users can get the Uphold card with up to 2% cashback in XRP

Cons

  • The charting analysis features on the platform trail specialist exchanges
  • There is a 2.49% fee if you want to use debit or credit cards
  • Customer service is slow based on tests, with limited contact options

Firstrade

"We recommend Firstrade for beginner investors looking to trade US stocks with no commissions. There is a wealth of free education plus premium-quality research and trading ideas from Morningstar, Briefing.com, Zacks and Benzinga."

William Berg, Reviewer

Firstrade Quick Facts

Bonus OfferDeposit Bonus Up To $4000
Demo AccountNo
InstrumentsStocks, ETFs, Options, Mutual Funds, Bonds, Cryptos, Fixed
RegulatorSEC, FINRA
PlatformsOwn
Minimum Deposit$0
Minimum Trade$1
Account CurrenciesUSD

Pros

  • Stop limit and trailing stop orders supported
  • Mobile app with advanced features and analysis
  • Commission-free investing

Cons

  • Visa Credit/debit card deposits and withdrawals not accepted
  • Some withdrawal fees
  • No demo/paper trading account

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."

Michael MacKenzie, Reviewer

Gemini Quick Facts

Demo AccountNo
InstrumentsCryptos
RegulatorNYDFS, MAS, FCA
PlatformsActiveTrader, AlgoTrader, TradingView
Minimum Deposit$0
Minimum Trade0.00001 BTC
Account CurrenciesUSD, EUR, GBP, CAD, AUD, HKD, SGD

Pros

  • There is a decent range of educational guides and tutorials suitable for beginners
  • Crypto perpetual futures are available in many jurisdictions with up to 1:100 leverage
  • The TradingView integration delivers top-quality tools, including backtesting and algo trading capabilities

Cons

  • Some larger coins by market cap are not available to buy through Gemini
  • The exchange has a history of concerning incidents including the collapse of its Earn program and a phishing breach
  • There are high fees for some funding methods including a 3.49% fee for card transactions

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.

author image
James Barra
Author

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.

💡
Some brokers may have a minimum deposit and/or charge to make a deposit. If your bank does charge a transfer fee, it’s worth making fewer, larger deposits to avoid incurring additional costs.

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.

💡
Choose a reputable bank and broker that offers some insurance or protection for account holders should anything go wrong.

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:

  1. Before using ACH you will need to set up a standing instruction via Transfer & Pay (enabling IBKR and your bank to transfer funds electronically).
  2. To verify your bank you’ll need to supply your account number and routing number.
  3. 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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