1st place
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Intro and winners
To help you find the best online brokers for funds in the US, we went ahead and did the research for you. First, we looked at the 103 online brokers that we cover, then we checked and compared their fees, products, trading platforms, deposit and withdrawal conditions, and more.
Let's see the winners!
Our top 5 picks for the best online brokers for funds in the US in 2022:
- Interactive Brokers is the best broker for funds in the US in 2022. Low trading fees. Wide range of products. Many great research tools.
- Firstrade takes second place. Free stock, ETF, fund and options trading. Solid research tools. Quality educational tools.
- Ally Invest rounds out the top three. Low trading and non-trading fees. Easy and fully digital account opening. Great education.
- E*TRADE came in fourth. Low trading fees (free stock and ETF trading). User-friendly mobile trading platform. Great research tools.
- Charles Schwab just made it to the list at number five. Free stock and ETF trading. Outstanding research. Great customer service.
| Broker | Description | Funds fee class | Number of available fund providers | ||
|---|---|---|---|---|---|
| #1 | Interactive Brokers | International broker providing all asset classes | Average | 400 | Visit broker |
| #2 | Firstrade | US discount broker | Low | 450 | Visit broker |
| #3 | Ally Invest | US stockbroker | Low | 600 | Visit broker |
| #4 | E*TRADE | US stockbroker | High | 600 | Visit broker |
| #5 | Charles Schwab | US discount broker | High | 600 | Visit broker |
What makes a good online broker for mutual fund investing?
- Fair fees for funds
- Wide selection of funds
- Safety
- Low or no inactivity fee
We test brokers based on close to 500 criteria with real accounts and real money. We speak from experience.
For a tailored recommendation, check out our broker finder tool. Want more details? Compare brokers with the help of this detailed comparison tool.
And now, let's see the best brokers for fund investors in the US one by one, starting with the winner, Interactive Brokers.
#1 Best brokers for funds in the US
Interactive Brokers
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.
| Pros | Cons |
|---|---|
| • Low trading fees | • Complicated account opening process |
| • Wide range of products | • Complex desktop trading platform |
| • Many great research tools | • Understaffed customer service |
#1 Interactive Brokers
Fees
Interactive Brokers has average fees when it comes to buying and selling funds.
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund fee class | Average | Low | Low | High | High |
| Mutual fund | $15.0 | $0.0 | $10.0 | $20.0 | $24.8 |
| Inactivity fee | No | No | No | No | No |
Note: We excluded the following fees:
- Ongoing fees (expense ratio)
- Front-load and redemption fees
- Short-term redemption fees
- Performance fees
#1 Interactive Brokers
Markets and products
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund providers (#) | 400 | 450 | 600 | 600 | 600 |
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Stocks | Yes | Yes | Yes | Yes | Yes |
| Bonds | Yes | Yes | Yes | Yes | Yes |
| ETFs | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | No | No | No | No |
| Futures | Yes | No | No | Yes | Yes |
| CFDs | Yes | No | No | No | No |
| Crypto | Yes | No | No | Yes | Yes |
#2 Best brokers for funds in the US
Firstrade
Firstrade is a US discount stockbroker regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The company was founded in 1985 under the name First Flushing Securities.
Firstrade is considered safe because it has a long track record and is overseen by top-tier regulators.
| Pros | Cons |
|---|---|
| • Free stock, ETF, fund and options trading | • No credit/debit cards and electronic wallets for money transfer |
| • Solid research tools | • You can trade only on US markets |
| • Quality educational tools | • No live chat or 24/7 availability |
#2 Firstrade
Fees
Firstrade has low fees when it comes to buying and selling funds.
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund fee class | Average | Low | Low | High | High |
| Mutual fund | $15.0 | $0.0 | $10.0 | $20.0 | $24.8 |
| Inactivity fee | No | No | No | No | No |
Note: We excluded the following fees:
- Ongoing fees (expense ratio)
- Front-load and redemption fees
- Short-term redemption fees
- Performance fees
#2 Firstrade
Markets and products
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund providers (#) | 400 | 450 | 600 | 600 | 600 |
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Stocks | Yes | Yes | Yes | Yes | Yes |
| Bonds | Yes | Yes | Yes | Yes | Yes |
| ETFs | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | No | No | No | No |
| Futures | Yes | No | No | Yes | Yes |
| CFDs | Yes | No | No | No | No |
| Crypto | Yes | No | No | Yes | Yes |
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#3 Best brokers for funds in the US
Ally Invest
Ally Invest is a US stockbroker regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Its parent company, Ally Financial Inc. dates back to 1911 when its predecessor, General Motors Acceptance Corporation (GMAC) was founded. Ally Financial Inc. is listed on the New York Stock Exchange and has a banking subsidiary, Ally Bank.
Ally Invest is considered safe because it has a long track record and is regulated by top-tier financial authorities.
| Pros | Cons |
|---|---|
| • Low trading and non-trading fees | • You can trade only on US markets |
| • Easy and fully digital account opening | • Forex trading is available through a separate account |
| • Great education | • Lack of proper 2-step authentication |
#3 Ally Invest
Fees
Ally Invest has low fees when it comes to buying and selling funds.
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund fee class | Average | Low | Low | High | High |
| Mutual fund | $15.0 | $0.0 | $10.0 | $20.0 | $24.8 |
| Inactivity fee | No | No | No | No | No |
Note: We excluded the following fees:
- Ongoing fees (expense ratio)
- Front-load and redemption fees
- Short-term redemption fees
- Performance fees
#3 Ally Invest
Markets and products
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund providers (#) | 400 | 450 | 600 | 600 | 600 |
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Stocks | Yes | Yes | Yes | Yes | Yes |
| Bonds | Yes | Yes | Yes | Yes | Yes |
| ETFs | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | No | No | No | No |
| Futures | Yes | No | No | Yes | Yes |
| CFDs | Yes | No | No | No | No |
| Crypto | Yes | No | No | Yes | Yes |
#4 Best brokers for funds in the US
E*TRADE
E*TRADE is a US-based stockbroker founded in 1982. It is regulated by top-tier financial authorities such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
E*TRADE is considered safe because it has a long track record, is listed on a stock exchange, has a banking background, discloses its financials, and is overseen by top-tier US regulators.
In February 2020, E*TRADE was acquired by Morgan Stanley. To find out more about the motives behind the acquisition and about the wider market context, check out this article we wrote about the deal.
| Pros | Cons |
|---|---|
| • Low trading fees (free stock and ETF trading) | • Only US markets, no forex |
| • User-friendly mobile trading platform | • Only bank transfer |
| • Great research tools | • Slow live chat |
#4 E*TRADE
Fees
E*TRADE has high fees when it comes to buying and selling funds.
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund fee class | Average | Low | Low | High | High |
| Mutual fund | $15.0 | $0.0 | $10.0 | $20.0 | $24.8 |
| Inactivity fee | No | No | No | No | No |
Note: We excluded the following fees:
- Ongoing fees (expense ratio)
- Front-load and redemption fees
- Short-term redemption fees
- Performance fees
#4 E*TRADE
Markets and products
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund providers (#) | 400 | 450 | 600 | 600 | 600 |
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Stocks | Yes | Yes | Yes | Yes | Yes |
| Bonds | Yes | Yes | Yes | Yes | Yes |
| ETFs | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | No | No | No | No |
| Futures | Yes | No | No | Yes | Yes |
| CFDs | Yes | No | No | No | No |
| Crypto | Yes | No | No | Yes | Yes |
#5 Best brokers for funds in the US
Charles Schwab
Charles Schwab is a US discount broker that was founded in 1971 and is listed on the New York Stock Exchange.
It is regulated by several top-tier financial authorities, such as the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
| Pros | Cons |
|---|---|
| • Free stock and ETF trading | • High fees for some mutual funds |
| • Outstanding research | • Only US/Canada markets available |
| • Great customer service |
#5 Charles Schwab
Fees
Charles Schwab has high fees when it comes to buying and selling funds.
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund fee class | Average | Low | Low | High | High |
| Mutual fund | $15.0 | $0.0 | $10.0 | $20.0 | $24.8 |
| Inactivity fee | No | No | No | No | No |
Note: We excluded the following fees:
- Ongoing fees (expense ratio)
- Front-load and redemption fees
- Short-term redemption fees
- Performance fees
#5 Charles Schwab
Markets and products
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund providers (#) | 400 | 450 | 600 | 600 | 600 |
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Stocks | Yes | Yes | Yes | Yes | Yes |
| Bonds | Yes | Yes | Yes | Yes | Yes |
| ETFs | Yes | Yes | Yes | Yes | Yes |
| Forex | Yes | No | No | No | No |
| Futures | Yes | No | No | Yes | Yes |
| CFDs | Yes | No | No | No | No |
| Crypto | Yes | No | No | Yes | Yes |
Best online brokers for funds in the US in 2022 - Fee comparison included
What makes a good broker for funds?
Now that we have seen the top 5 brokers for funds, you're probably curious how we put together this list. Let us walk you through the process.
How did BrokerChooser pick the best brokers for funds?
At BrokerChooser, we test online brokers along close to 500 criteria, using real accounts and real money. We don't want to overwhelm you, so we'll list just a few important criteria that we took into consideration to find the best brokers for funds:
- Trading fees charged for funds
- Non-trading fees such as inactivity fee
- Wide range of products, especially mutual funds
- Broker safety
Best online brokers for funds in the US in 2022 - Fee comparison included
Bottom line
You saw the details, now let's zoom out again. Here are the best online brokers for mutual funds in the US:
| Interactive Brokers | Firstrade | Ally Invest | E*TRADE | Charles Schwab | |
|---|---|---|---|---|---|
| Fund fee class | Average | Low | Low | High | High |
| Fund providers (#) | 400 | 450 | 600 | 600 | 600 |
| Inactivity fee | No | No | No | No | No |
| Overall score | 4.9 | 4.3 | 4.6 | 4.6 | 4.7 |
| Visit broker | Visit broker | Visit broker | Visit broker | Visit broker |
Interactive Brokers is our winner, the best online broker for funds in the US. Low trading fees. Wide range of products. Many great research tools.
Pick the winner or any runner-up, and take the next step in your investment journey. Let us know what you think in the comment section.
Still unsure? Use our broker finder tool to find the online broker most suitable for you.
