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Best brokers for ESG investing in 2022
Interactive Brokers logo
Fidelity logo
Merrill Edge logo

To help you find the best brokers for ESG investing, we went ahead and did the research for you. We examined 101 quality brokers that offer 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.

Altogether 3 brokers made it to the top in 2022. And now, without further ado...

Our top 3 picks for the best brokers for ESG investing in 2022:

  1. Interactive Brokers is the winner, the best ESG broker in 2022.
  2. Fidelity is the runner-up.
  3. Merrill Edge rounds out the top three.
Best brokers for ESG investing in 2022
Broker Accepts clients from ESG score by BrokerChooser
#1 Interactive Brokers Globally 4.9 stars
#2 Fidelity US 4.9 stars
#3 Merrill Edge US 4.8 stars

What makes a good broker for ESG investing? Above all, excellent ESG research quality and a wide ESG product selection. The service provider should make it easy for you to find ESG-related investment products. It should offer great ESG 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 outstanding, 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 tested brokers along nearly 500 criteria, using real accounts and real money. We speak from experience.

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, Interactive Brokers.

Interactive Brokers Logo

#1 Best brokers for ESG investing
Interactive Brokers

4.9

Interactive Brokers, one of the biggest US-based discount brokers, was founded in 1977. 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).

Given that the broker has licenses from multiple top-tier regulators, Interactive Brokers is considered safe. The fact that it has a long track record and publicly disclosed financials while being listed on a stock exchange all point to IB being a safe service provider.

Interactive Brokers recently launched a new app for global stock trading: read our review of IBKR GlobalTrader.

In addition, Interactive Brokers also has an app you can use for ESG investing: read our review of IMPACT by Interactive Brokers.

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#1 Interactive Brokers
Quality of ESG services

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

To help you assess and easily 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
Interactive Brokers Fidelity Merrill Edge
ESG research quality Great Great Great
ESG ETFs (#) 700 130 130
ESG funds (#) 800 250 50
ESG education quality Great Mid-range Mid-range

#1 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
Interactive Brokers Fidelity Merrill Edge
US ETF fees $1.0 $0.0 $0.0
UK ETF fees $4.2 $12.6 -
Fund fees $15.0 $37.5 $20.0

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
Interactive Brokers Fidelity Merrill Edge
Account fee No No No
Inactivity fee No No No
Withdrawal fee $0 $0 $0
Fidelity Logo

#2 Best brokers for ESG investing
Fidelity

4.7

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.

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#2 Fidelity
Quality of ESG services

Fidelity has great ESG services, including excellent ESG research and educational tools. We found that 130 ESG ETFs and 250 ESG funds are available on the trading platform of Fidelity.

To help you assess and easily 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
Interactive Brokers Fidelity Merrill Edge
ESG research quality Great Great Great
ESG ETFs (#) 700 130 130
ESG funds (#) 800 250 50
ESG education quality Great Mid-range Mid-range

#2 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
Interactive Brokers Fidelity Merrill Edge
US ETF fees $1.0 $0.0 $0.0
UK ETF fees $4.2 $12.6 -
Fund fees $15.0 $37.5 $20.0

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
Interactive Brokers Fidelity Merrill Edge
Account fee No No No
Inactivity fee No No No
Withdrawal fee $0 $0 $0
Merrill Edge Logo

#3 Best brokers for ESG investing
Merrill Edge

4.7

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. 

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#3 Merrill Edge
Quality of ESG services

Merrill Edge has great ESG services, including excellent ESG research and educational tools. We found that 130 ESG ETFs and 50 ESG funds are available on the trading platform of Merrill Edge.

To help you assess and easily 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
Interactive Brokers Fidelity Merrill Edge
ESG research quality Great Great Great
ESG ETFs (#) 700 130 130
ESG funds (#) 800 250 50
ESG education quality Great Mid-range Mid-range

#3 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
Interactive Brokers Fidelity Merrill Edge
US ETF fees $1.0 $0.0 $0.0
UK ETF fees $4.2 $12.6 -
Fund fees $15.0 $37.5 $20.0

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
Interactive Brokers Fidelity Merrill Edge
Account fee No No No
Inactivity fee No No No
Withdrawal fee $0 $0 $0

Best brokers for ESG investing in 2022
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 a fast and seamless account opening.

Most brokers still don't offer any ESG services. The most 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. 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 in 2022
ESG Investing 101

ESG investing looks simple, but, as all investments, it comes with risks. Before you start investing, 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 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 all investors.

For non-professional or novice investors, the easiest way to start their ESG investing journey is by opening an account at a reliable online broker, which offers ESG products and services.

With money pouring into sustainable funds globally, the number of both actively managed and passive sustainability funds has been growing in order to keep up with rising demand. Investors will likely have even more choices in the future.

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. The world’s largest ESG research providers, like MSCI and Sustainalytics, publish ratings and research on several equity and fixed-income issuers, and maintain equity and fixed-income ESG indexes to help investors benchmark ESG performance.

If you would like to learn more about ESG, feel free to visit this page.

Best brokers for ESG investing in 2022
Bottom line

Now that we've shown you the details, let's zoom out. Here are the best brokers for ESG investing in 2022:

Best brokers for ESG investing in 2022
Interactive Brokers Fidelity Merrill Edge
ESG score by BrokerChooser 4.9 stars 4.9 stars 4.8 stars
ETF fee score 4.8 stars 4.7 stars 5.0 stars
Fund fee score 2.9 stars 0.0 stars 2.2 stars
Account opening score 3.2 stars 3.7 stars 5.0 stars
Deposit and withdrawal score 3.0 stars 3.8 stars 2.2 stars
Web platform score 4.0 stars 4.5 stars 4.3 stars

Interactive Brokers 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.
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

Gabi Lovas

Author of this article

Gabi is now a Financial Analyst at BrokerChooser after working as a Content Editor for a year. Previously, she was a European equity reporter at Bloomberg covering European health care and chemical stocks as well as US futures, until she relocated to Spain in 2019. Gabi has a Master's degree in Economics and she is a stock investor on her own account. She is also a member of an investment club in Barcelona.

Gabi Lovas

Broker Analyst

Gabi is now a Financial Analyst at BrokerChooser after working as a Content Editor for a year. Previously, she was a European equity reporter at Bloomberg covering European health care and chemical stocks as well as US futures, until she relocated to Spain in 2019. Gabi has a Master's degree in Economics and she is a stock investor on her own account. She is also a member of an investment club in Barcelona.

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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