Auto Investing Extra Cash Into an ETF?
Summary:
- The main problem reported is the user’s desire to invest cash from their Fidelity brokerage account into an ETF automatically, but they are unsure if setting up a recurring investment will work if funds are insufficient.
- Fidelity confirmed that if there are not enough funds for the scheduled recurring investment, the purchase will be skipped, but the investment plan will remain active and not be canceled.
Here’s the full thread
I have a fidelity individual brokerage account and a fidelity credit card linked to it. I’d like as much of my cash invested into an ETF as possible at any given time. To my understanding there’s no way to automatically buy stocks with all cash in an account.
I’m wondering if I can set up a work around by creating a recurring investment for say.. $100/month. Then if the account has $100 it will go through and if it doesn’t it will bounce. My two questions are 1. Will a recurring investment bounce if I don’t have the founds or will it go through and force me to credit the account and 2. Will my recurring investment order be stopped forever if I don’t have the funds one time or will it try again next month if I have the balance.
We appreciate you reaching out, @Sam.
For recurring investments, if there are not sufficient funds available, your scheduled purchase will be skipped, but the associated plan will not be canceled.
You can learn more about our recurring investment features here: https://www.fidelity.com/trading/recurring-investments
If there is anything we can clarify or if additional questions pop up, please don’t hesitate to ask! We’re always happy to help. 🟢