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To help you find the best brokers for ESG investing, we went ahead and did the research for you. First, we selected 89 quality brokers that are offering ESG-related products. We then analysed their ESG product selection, ESG research and ESG-related fees. We also examined their educational material on ESG topics. We dug deep, so you won't have to.

5 brokers made it to the top in 2021 and we highly recommend all 5 to you. And now, without further ado...

Our top 5 picks for the best brokers for ESG investing in 2021:

  1. Fidelity is the winner. Commission-free US stocks and ETFs. Great trading platforms and research. US and international stocks.
  2. Merrill Edge came second. Low trading fees. Easy and seamless account opening. Strong parent company.
  3. Charles Stanley Direct rounds out the top three. Low fund fees. Great customer service. Easy deposit and withdrawal.
  4. Chase You Invest is ranked fourth. Commission-free US stocks, ETFs, funds and bonds. Fast and fully digital account opening. Well-established parent company.
  5. Interactive Brokers just made it to the list in fifth place. Low trading fees. Wide range of products. Many great research tools.
Best brokers for ESG investing in 2021
Broker Accepts clients from ESG score by BrokerChooser
#1 Fidelity US 4.3 stars
#2 Merrill Edge US 4.3 stars
#3 Charles Stanley Direct UK 3.8 stars
#4 Chase You Invest US 3.8 stars
#5 Interactive Brokers Globally 3.7 stars

What makes a good broker for ESG investing? Above all, excellent ESG research quality and a wide ESG product selection. The service should make it easy for you to find ESG-related investment products. It should offer great platform tools, like ESG screeners as well as quality ESG educational material with articles and videos. ESG-related product fees should be reasonable. In addition, the broker's overall service quality should be strong, with a quick and seamless account opening procedure as well as easy and fast deposit and withdrawal.

These key factors are easy to list, but hard to figure out. We test brokers along nearly 500 criteria, using real accounts and real money. We know what's up.

Not sure which broker to choose? For a tailored recommendation, check out our broker finder tool. If you enter the name of your country and your preferences, it will display the best relevant matches. Want more details? Compare brokers with the help of our in-depth comparison table.

And now, let's see the best brokers for ESG investing one by one, starting with the winner, Fidelity.

#1 Best brokers for ESG investing
Fidelity

4.9

Fidelity is a US stockbroker founded in 1946. It is regulated by top-tier authorities like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Fidelity is considered safe because it has a long track record and is regulated by top-tier financial authorities.

Recommended for investors and traders looking for solid research and great trading platforms

Read review

#1 Fidelity
Quality of ESG services

Fidelity has outstanding ESG services, including excellent ESG research and educational tools. We found that 100 ESG ETFs and 250 ESG funds are available on the trading platform of Fidelity.

To help you easily see and compare the quality of ESG services at a glance, we summarized brokers' ESG scores in each category we examined in the following table.

Fidelity ESG services
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
ESG research quality Great Great Mid-range Mid-range Mid-range
ESG ETFs (#) 100 100 150 100 700
ESG funds (#) 250 50 200 130 800
ESG education quality Poor Mid-range Mid-range Poor Mid-range

#1 Fidelity
Stock and fund fees

Fidelity has low ETF fees and high fund fees.

To have a clear picture of all ESG-related fees, we created a table for ETF and mutual fund trading fees and a separate one for non-trading fees.

Fidelity ETF and fund trading fees
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
US ETF fees $0.0 $0.0 - $0.0 $1.0
UK ETF fees $11.7 - $15.0 - $7.8
Fund fees $37.5 $20.0 $0.0 $0.0 $15.0

ETF and fund commissions are calculated for a $2,000 trade.

Non-trading fees are also important, so let's see how Fidelity compares in this regard.

Fidelity non-trading fees
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Account fee No No No No No
Inactivity fee No No No No Yes
Withdrawal fee $0 $0 $0 $0 $0

#1 Fidelity
Account opening
3.6

Opening an account at Fidelity is easy and there is no minimum deposit. You can also choose among many account types. However, account verification is a bit slow.
Pros Cons
No minimum deposit Slower account verification
User-friendly Not fully digital in some cases
Many account types
Fidelity minimum deposit and time to open an account
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Minimum deposit $0 $0 $26 $0 $0
Time to open account 1-3 days 1 day 1-3 days 1 day 1-3 days
Best brokers for ESG investing - Fidelity account opening

Read review

#1 Fidelity
Deposit and withdrawal
3.8

Fidelity offers an exceptionally wide range of base currencies. On the negative side, credit/debit cards are not accepted.
Pros Cons
Free withdrawal Credit/Debit card not available
No deposit fee
Several account base currencies
Fidelity withdrawal fee and options
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Bank transfer Yes Yes Yes Yes Yes
Credit/debit card No No No No No
Electronic wallets Yes No No No No
Withdrawal fee $0 $0 $0 $0 $0
Best brokers for ESG investing - Fidelity deposit-withdrawal

Read review

#1 Fidelity
Web trading platform
4.5

Fidelity's web platform is easy to use, has many order types and provides two-step authentication. On the negative side, it is not customizable.
Pros Cons
User-friendly Limited customizability (for charts, workspace)
Clear fee report
Two-step (safer) login
Best brokers for ESG investing - Fidelity trading platform
Fidelity trading platforms
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Web platform score 4.5 stars 4.3 stars 3.5 stars 2.9 stars 4.5 stars
Mobile platform score 4.5 stars 4.8 stars 4.0 stars 3.9 stars 3.8 stars
Desktop platform score 3.8 stars - - - 3.0 stars

Read review

#1 Fidelity
Verdict

Fidelity is one of the biggest US stockbrokers and is regulated by top-tier authorities.

Fidelity offers commission-free US stocks and ETFs. The trading platforms and research are outstanding, with many tools including trading ideas and detailed fundamental data. The offered range of products includes international stock exchanges in addition to the US market, which is not common among US brokers.

Fidelity has some drawbacks, though. Some mutual funds have high fees, and the margin rates are high as well. The account verification process and live chat support are both a bit slow. 

As it has great research tools, a user-friendly web trading platform, and charges no inactivity fee, feel free to try Fidelity's services.

Read review

#2 Best brokers for ESG investing
Merrill Edge

4.8

Merrill Edge is a US-based stockbroker founded in 2010 by Bank of America (BofA). BofA acquired Merrill Lynch during the 2008 financial crisis, and the rationale for launching Merrill Edge was to combine its online investing arm and Merrill Lynch's investment expertise. Merrill Edge offers US stocks, ETFs, options, and bonds. It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Merrill Edge is considered safe because its parent company is a bank with a long track record and solid reputation, it discloses its financials, and is regulated by top-tier regulators. 

Recommended for investors and traders who looking for low fees, quick account opening, and simple platforms

Read review

#2 Merrill Edge
Quality of ESG services

Merrill Edge has outstanding ESG services, including excellent ESG research and educational tools. We found that 100 ESG ETFs and 50 ESG funds are available on the trading platform of Merrill Edge.

To help you easily see and compare the quality of ESG services at a glance, we summarized brokers' ESG scores in each category we examined in the following table.

Merrill Edge ESG services
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
ESG research quality Great Great Mid-range Mid-range Mid-range
ESG ETFs (#) 100 100 150 100 700
ESG funds (#) 250 50 200 130 800
ESG education quality Poor Mid-range Mid-range Poor Mid-range

#2 Merrill Edge
Stock and fund fees

Merrill Edge has low ETF fees and high fund fees.

To have a clear picture of all ESG-related fees, we created a table for ETF and mutual fund trading fees and a separate one for non-trading fees.

Merrill Edge ETF and fund trading fees
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
US ETF fees $0.0 $0.0 - $0.0 $1.0
UK ETF fees $11.7 - $15.0 - $7.8
Fund fees $37.5 $20.0 $0.0 $0.0 $15.0

ETF and fund commissions are calculated for a $2,000 trade.

Non-trading fees are also important, so let's see how Merrill Edge compares in this regard.

Merrill Edge non-trading fees
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Account fee No No No No No
Inactivity fee No No No No Yes
Withdrawal fee $0 $0 $0 $0 $0

#2 Merrill Edge
Account opening
5.0

Account opening at Merrill Edge is seamless and fully digital, it took us less than one day to have an open account. Only US clients are accepted.
Pros Cons
Fast Only US clients are accepted
Fully digital
No minimum deposit
Merrill Edge minimum deposit and time to open an account
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Minimum deposit $0 $0 $26 $0 $0
Time to open account 1-3 days 1 day 1-3 days 1 day 1-3 days
Best brokers for ESG investing - Merrill Edge account opening

Read review

#2 Merrill Edge
Deposit and withdrawal
2.2

Merrill Edge has an easy-to-use deposit and withdrawal system with a bank account connection. Unfortunately, credit/debit cards cannot be used to fund the account, and there is only USD as a base currency.
Pros Cons
Free withdrawal Credit/Debit card not available
No deposit fee Only one account base currency
User-friendly Slow withdrawal - over 3 days
Merrill Edge withdrawal fee and options
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Bank transfer Yes Yes Yes Yes Yes
Credit/debit card No No No No No
Electronic wallets Yes No No No No
Withdrawal fee $0 $0 $0 $0 $0
Best brokers for ESG investing - Merrill Edge deposit-withdrawal

Read review

#2 Merrill Edge
Web trading platform
4.3

Merrill Edge has a user-friendly and simple trading platform, with options for secure login and for setting price alerts. However, it offers only limited customizability and the search function is not so advanced.
Pros Cons
User-friendly Limited customizability (for charts, workspace)
Clear fee report
Two-step (safer) login
Best brokers for ESG investing - Merrill Edge trading platform
Merrill Edge trading platforms
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Web platform score 4.5 stars 4.3 stars 3.5 stars 2.9 stars 4.5 stars
Mobile platform score 4.5 stars 4.8 stars 4.0 stars 3.9 stars 3.8 stars
Desktop platform score 3.8 stars - - - 3.0 stars

Read review

#2 Merrill Edge
Verdict

Overall, Merrill Edge is a solid, easy-to-use trading platform created by Bank of America, one of the US's largest banks.

We rated Merrill Edge highly due to its low fees, easy process of account opening, and safety. 

Some of the drawbacks include limited product offerings, research capabilities, and deposit/withdrawal options.

As trading and non-trading fees are generally low, the research tools are great and the account opening is seamless, feel free to try it.

Read review

#3 Best brokers for ESG investing
Charles Stanley Direct

4.5

Charles Stanley Direct is a UK-based stockbroker founded in 1985. It is regulated by the top-tier UK Financial Conduct Authority (FCA), and its shares are traded on the London Stock Exchange.

Charles Stanley Direct is considered safe because it has a long track record, is listed on a stock exchange, and is regulated by a top-tier regulator.

Recommended for beginners and buy-and-hold investors focusing on the uk market

Read review

#3 Charles Stanley Direct
Quality of ESG services

Charles Stanley Direct has great ESG services, such as research or educational tools on ESG. We found that 150 ESG ETFs and 200 ESG funds are available on the trading platform of Charles Stanley Direct.

To help you easily see and compare the quality of ESG services at a glance, we summarized brokers' ESG scores in each category we examined in the following table.

Charles Stanley Direct ESG services
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
ESG research quality Great Great Mid-range Mid-range Mid-range
ESG ETFs (#) 100 100 150 100 700
ESG funds (#) 250 50 200 130 800
ESG education quality Poor Mid-range Mid-range Poor Mid-range

#3 Charles Stanley Direct
Stock and fund fees

Charles Stanley Direct has low ETF fees and low fund fees.

To have a clear picture of all ESG-related fees, we created a table for ETF and mutual fund trading fees and a separate one for non-trading fees.

Charles Stanley Direct ETF and fund trading fees
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
US ETF fees $0.0 $0.0 - $0.0 $1.0
UK ETF fees $11.7 - $15.0 - $7.8
Fund fees $37.5 $20.0 $0.0 $0.0 $15.0

ETF and fund commissions are calculated for a $2,000 trade.

Non-trading fees are also important, so let's see how Charles Stanley Direct compares in this regard.

Charles Stanley Direct non-trading fees
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Account fee No No No No No
Inactivity fee No No No No Yes
Withdrawal fee $0 $0 $0 $0 $0

#3 Charles Stanley Direct
Account opening
4.7

If you have a UK passport, the account opening procedure is quick and easy. If not, you have to mail in photocopied documents, making the process less convenient.
Pros Cons
Fully digital Available only to UK residents
Low minimum deposit
User-friendly
Charles Stanley Direct minimum deposit and time to open an account
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Minimum deposit $0 $0 $26 $0 $0
Time to open account 1-3 days 1 day 1-3 days 1 day 1-3 days
Best brokers for ESG investing - Charles Stanley Direct account opening

Read review

#3 Charles Stanley Direct
Deposit and withdrawal
3.8

Depositing and withdrawing money is easy and free with bank transfer at Charles Stanley Direct. Unfortunately, accounts are only available in British pounds.
Pros Cons
Credit/Debit card available Only one account base currency
Free withdrawal
No deposit fee
Charles Stanley Direct withdrawal fee and options
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Bank transfer Yes Yes Yes Yes Yes
Credit/debit card No No No No No
Electronic wallets Yes No No No No
Withdrawal fee $0 $0 $0 $0 $0
Best brokers for ESG investing - Charles Stanley Direct deposit-withdrawal

Read review

#3 Charles Stanley Direct
Web trading platform
3.5

The web trading platform is user-friendly and delivers some of the usual basic functions. However, it lacks a safer two-step login, customizability, and advanced order types.
Pros Cons
User-friendly No two-step (safer) login
Clear fee report Limited customizability (for charts, workspace)
Price alerts Limited order types
Best brokers for ESG investing - Charles Stanley Direct trading platform
Charles Stanley Direct trading platforms
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Web platform score 4.5 stars 4.3 stars 3.5 stars 2.9 stars 4.5 stars
Mobile platform score 4.5 stars 4.8 stars 4.0 stars 3.9 stars 3.8 stars
Desktop platform score 3.8 stars - - - 3.0 stars

Read review

#3 Charles Stanley Direct
Verdict

Charles Stanley Direct is a UK stockbroker regulated by the FCA and listed on the London Stock Exchange.

On the positive side, it has low fund fees. Customer service is great, offering quick and useful answers. Deposit and withdrawal are easy and free.

The service has some drawbacks though. You can only trade UK stocks, ETFs and mutual funds online. Educational and research tools are limited.

As the minimum deposit is low and no inactivity fee is charged, feel free to try Charles Stanley Direct.

Read review

#4 Best brokers for ESG investing
Chase You Invest

4.6

Chase You Invest is a US-based discount broker established by J.P. Morgan in 2018. The parent company, J.P. Morgan, is one the biggest global Tier 1 investment banks listed on the New York Stock Exchange. It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Chase You Invest is considered safe because the parent company has a long track record, is listed on the stock exchange, has a banking background, discloses its financials regularly and is regulated by top-tier regulators.

Recommended for beginners and buy-and-hold investors focusing on the us stock market

Read review

#4 Chase You Invest
Quality of ESG services

Chase You Invest has great ESG services, such as research or educational tools on ESG. We found that 100 ESG ETFs and 130 ESG funds are available on the trading platform of Chase You Invest.

To help you easily see and compare the quality of ESG services at a glance, we summarized brokers' ESG scores in each category we examined in the following table.

Chase You Invest ESG services
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
ESG research quality Great Great Mid-range Mid-range Mid-range
ESG ETFs (#) 100 100 150 100 700
ESG funds (#) 250 50 200 130 800
ESG education quality Poor Mid-range Mid-range Poor Mid-range

#4 Chase You Invest
Stock and fund fees

Chase You Invest has low ETF fees and low fund fees.

To have a clear picture of all ESG-related fees, we created a table for ETF and mutual fund trading fees and a separate one for non-trading fees.

Chase You Invest ETF and fund trading fees
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
US ETF fees $0.0 $0.0 - $0.0 $1.0
UK ETF fees $11.7 - $15.0 - $7.8
Fund fees $37.5 $20.0 $0.0 $0.0 $15.0

ETF and fund commissions are calculated for a $2,000 trade.

Non-trading fees are also important, so let's see how Chase You Invest compares in this regard.

Chase You Invest non-trading fees
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Account fee No No No No No
Inactivity fee No No No No Yes
Withdrawal fee $0 $0 $0 $0 $0

#4 Chase You Invest
Account opening
5.0

Account opening at Chase You Invest is seamless and fully digital. It took us one day to open an account, however only US clients are accepted.
Pros Cons
Fast Only for US clients
Fully digital
No minimum deposit
Chase You Invest minimum deposit and time to open an account
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Minimum deposit $0 $0 $26 $0 $0
Time to open account 1-3 days 1 day 1-3 days 1 day 1-3 days
Best brokers for ESG investing - Chase You Invest account opening

Read review

#4 Chase You Invest
Deposit and withdrawal
2.2

At Chase You Invest there is no deposit fee and transferring money is simple and easy, although withdrawal options could be more numerous.
Pros Cons
No deposit fee Credit/Debit card not available
Quick deposit and withdrawal - within 3 days Only one account base currency
High wire withdrawal fee for non-Chase accounts
Chase You Invest withdrawal fee and options
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Bank transfer Yes Yes Yes Yes Yes
Credit/debit card No No No No No
Electronic wallets Yes No No No No
Withdrawal fee $0 $0 $0 $0 $0

Read review

#4 Chase You Invest
Web trading platform
2.9

Chase You Invest's web trading platform is exceptionally easy to use and it boasts a great search function. On the flip side, two-step authentication is missing, there are no clear fee reports and users can't set price alerts.
Pros Cons
User-friendly No clear fee report available
Good search function No two-step (safer) login
Order confirmation Limited customizability (for charts, workspace)
Best brokers for ESG investing - Chase You Invest trading platform
Chase You Invest trading platforms
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Web platform score 4.5 stars 4.3 stars 3.5 stars 2.9 stars 4.5 stars
Mobile platform score 4.5 stars 4.8 stars 4.0 stars 3.9 stars 3.8 stars
Desktop platform score 3.8 stars - - - 3.0 stars

Read review

#4 Chase You Invest
Verdict

Chase You Invest offers awesome fees: the broker does not charge additional fees for trading US stocks, ETFs, mutual funds and US bonds. Some very low charges may apply to cover costs imposed by regulatory or stock exchange authorities (e.g. $0.01 - $0.03 per $1,000 principal for US stocks and ETFs). 

The fully digital account opening is easy and fast, on-boarding is seamless. Chase You Invest's parent company, J.P. Morgan, has a banking background, is listed on the New York Stock Exchange and is regulated by the SEC. 

Chase You Invest has some drawbacks, though. It is only available to US residents, the product portfolio is limited, with a heavy focus on US markets and the research tools are basic. 

In a nutshell, Chase You invest offers low-cost trading and has one of the most solid parent companies. Feel free to give it a try. 

 

Read review

Interactive Brokers Logo

#5 Best brokers for ESG investing
Interactive Brokers

4.9

Interactive Brokers was founded in 1978 and is one of the biggest US-based discount brokers. The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC).

As it has licenses from multiple top-tier regulators, Interactive Brokers is considered safe. Having a long track record and publicly disclosed financials while being listed on a stock exchange are also great signs for its safety.

Recommended for traders looking for low fees and a professional trading environment

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#5 Interactive Brokers
Quality of ESG services

Interactive Brokers has great ESG services, such as research or educational tools on ESG. We found that 700 ESG ETFs and 800 ESG funds are available on the trading platform of Interactive Brokers.

To help you easily see and compare the quality of ESG services at a glance, we summarized brokers' ESG scores in each category we examined in the following table.

Interactive Brokers ESG services
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
ESG research quality Great Great Mid-range Mid-range Mid-range
ESG ETFs (#) 100 100 150 100 700
ESG funds (#) 250 50 200 130 800
ESG education quality Poor Mid-range Mid-range Poor Mid-range

#5 Interactive Brokers
Stock and fund fees

Interactive Brokers has low ETF fees and average fund fees.

To have a clear picture of all ESG-related fees, we created a table for ETF and mutual fund trading fees and a separate one for non-trading fees.

Interactive Brokers ETF and fund trading fees
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
US ETF fees $0.0 $0.0 - $0.0 $1.0
UK ETF fees $11.7 - $15.0 - $7.8
Fund fees $37.5 $20.0 $0.0 $0.0 $15.0

ETF and fund commissions are calculated for a $2,000 trade.

Non-trading fees are also important, so let's see how Interactive Brokers compares in this regard.

Interactive Brokers non-trading fees
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Account fee No No No No No
Inactivity fee No No No No Yes
Withdrawal fee $0 $0 $0 $0 $0

#5 Interactive Brokers
Account opening
3.4

IB's account opening process is fully digital and the required minimum deposit is low. On the negative side, the process is complicated, and account verification takes relatively long.
Pros Cons
Fully digital Not user-friendly
No minimum deposit for most account types Confusing messages throughout the process
Interactive Brokers minimum deposit and time to open an account
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Minimum deposit $0 $0 $26 $0 $0
Time to open account 1-3 days 1 day 1-3 days 1 day 1-3 days
Best brokers for ESG investing - Interactive Brokers account opening

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#5 Interactive Brokers
Deposit and withdrawal
3.5

Interactive Brokers offers many account base currency options and one free withdrawal per month. The main drawback is that you can only use bank transfer.
Pros Cons
No deposit fee Credit/Debit card not available
Several account base currencies
First withdrawal each month free
Interactive Brokers withdrawal fee and options
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Bank transfer Yes Yes Yes Yes Yes
Credit/debit card No No No No No
Electronic wallets Yes No No No No
Withdrawal fee $0 $0 $0 $0 $0
Best brokers for ESG investing - Interactive Brokers deposit-withdrawal

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#5 Interactive Brokers
Web trading platform
4.5

Interactive Brokers's web platform is simple and easy to use, even for beginners.
Pros Cons
User-friendly None
Clear fee report
Two-step (safer) login
Best brokers for ESG investing - Interactive Brokers trading platform
Interactive Brokers trading platforms
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
Web platform score 4.5 stars 4.3 stars 3.5 stars 2.9 stars 4.5 stars
Mobile platform score 4.5 stars 4.8 stars 4.0 stars 3.9 stars 3.8 stars
Desktop platform score 3.8 stars - - - 3.0 stars

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#5 Interactive Brokers
Verdict

Interactive Brokers is one of the biggest US-based discount brokers, regulated by several top-tier regulators globally. We recommend this broker mainly for advanced traders.

On the plus side, IB has low fees, a vast range of available markets and products, and diverse research tools

There are some drawbacks, though: there are high forex fees, and the account opening process is complicated. The desktop platform is complex and hard to get a handle on, especially for beginners.

If you have experience navigating complex platforms and enjoy transparent, low-cost trading, Interactive Brokers could be a great fit for you.

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Best brokers for ESG investing
What makes a great broker for ESG investing?

ESG investing is becoming increasingly popular, with investors flocking to ESG-related products. Looking at important criteria like ESG product selection will help you find the online broker most suitable for you.

At BrokerChooser, we test online brokers based on nearly 500 criteria, using real accounts and real money. Out of all those criteria, these are the most important ones to consider when selecting the top brokers for ESG investing:

  1. ESG research tools: it's a great plus if there is a research tool for filtering ESG products, such as an ESG stock or ETF screener.

  2. ESG product selection: the bigger the selection of ESG funds and ETFs, the better.

  3. Fees of ESG products: as most ESG investors use stocks, ETFs and funds to invest in ESG, we scored the fees of these asset classes.

  4. ESG educational tools: many investors are not familiar with ESG investments; that's why it can be a great advantage if the broker provides ESG educational tools like articles or videos.

  5. Overall quality of the broker: we gave a positive score if the broker offers high-quality basic services such as fast and seamless account opening.

We found it really interesting that most brokers don't offer any ESG services. Common tools that brokers provide to identify suitable ESG investments include screeners and ESG scoring tables. At some brokers, you can search for stocks based on MCSI ESG criteria, such as accounting and governance risk score, environmental score, social score, governance score or overall ESG rating. Brokers may provide tools to search for and compare available ESG ETFs and mutual funds as well. Often, though, support is limited to articles on ESG investing or lists of ESG-compliant products.

Best brokers for ESG investing
ESG Investing 101

ESG investing looks simple, but, as all investments, it comes with risks. Before you start trading, it is important to understand the basics.

ESG investing is a strategy that incorporates environmental (E), social (S) and governance (G) factors besides traditional financial metrics. This approach is not only for investors who are especially concerned about environmental and social causes; it can in fact help anyone make better-informed choices, as it goes far beyond the traditional risk-and-return concept. Integrating ESG considerations into investment decisions may improve risk management and long-term financial performance.

For a non-professional trader, the easiest and safest way to trade ESG products is by opening an account at a reliable online broker.

With money pouring into sustainable funds globally, the number of both actively managed and passive sustainable funds has been growing in order to keep up with rising demand. The choices investors have will most likely expand further.

ESG risk ratings and analysis by independent research firms can help investors better understand the ESG risks of their portfolios as well as their individual securities. MSCI ESG Research, the world’s largest ESG research provider, publishes ratings and research on more than 14,000 equity and fixed-income issuers, and maintains more than 1,500 equity and fixed-income ESG indexes to help investors benchmark ESG performance. Another leading provider is Sustainalytics, a Morningstar subsidiary that offers ratings on 20,000 companies and 172 countries.

Best brokers for ESG investing
Bottom line

We've shown you the details, now let's zoom out. Here are the best brokers for ESG investing in 2021:

Best brokers for ESG investing in 2021
Fidelity Merrill Edge Charles Stanley Direct Chase You Invest Interactive Brokers
ESG score by BrokerChooser 4.3 stars 4.3 stars 3.8 stars 3.8 stars 3.7 stars
ETF fee score 4.8 stars 5.0 stars 3.6 stars 5.0 stars 4.7 stars
Fund fee score 0.1 stars 2.4 stars 5.0 stars 5.0 stars 3.0 stars
Account opening score 3.6 stars 5.0 stars 4.7 stars 5.0 stars 3.4 stars
Deposit and withdrawal score 3.8 stars 2.2 stars 3.8 stars 2.2 stars 3.5 stars
Web platform score 4.5 stars 4.3 stars 3.5 stars 2.9 stars 4.5 stars

Fidelity is our winner, the best broker for ESG investing. It provides excellent ESG research and educational tools as well as many ESG ETFs and funds.
We consider all of these brokers a great choice. Pick the winner or any runner-up, and take the next step in your investment journey. Let us know what you think in the comments section.
Still unsure which broker to choose? Use our broker finder tool to find the best broker for you, or learn more about investing your money.

Author of this article

Gabriella Lovas

Author of this article

Gabi loves writing new content, be it a broker review, an article on investing or a blog post. She enjoys every step of the writing process, from doing the research to editing. Working remotely from Barcelona as a content editor is both exciting and challenging for her.

Gabriella Lovas

Content Editor

Gabi loves writing new content, be it a broker review, an article on investing or a blog post. She enjoys every step of the writing process, from doing the research to editing. Working remotely from Barcelona as a content editor is both exciting and challenging for her.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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