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Best brokers for funds in the US in 2022

Interactive Brokers Logo
1st place
Interactive Brokers
Firstrade Logo
2nd place
Firstrade
Ally Invest Logo
3rd place
Ally Invest

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:

  1. Interactive Brokers is the best broker for funds in the US in 2022. Low trading fees. Wide range of products. Many great research tools.
  2. Firstrade takes second place. Free stock, ETF, fund and options trading. Solid research tools. Quality educational tools.
  3. Ally Invest rounds out the top three. Low trading and non-trading fees. Easy and fully digital account opening. Great education.
  4. E*TRADE came in fourth. Low trading fees (free stock and ETF trading). User-friendly mobile trading platform. Great research tools.
  5. Charles Schwab just made it to the list at number five. Free stock and ETF trading. Outstanding research. Great customer service.
Best online brokers for funds in the US in 2022
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.

Interactive Brokers Logo

#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

Visit broker

#1 Interactive Brokers
Fees

Interactive Brokers has average fees when it comes to buying and selling funds.
Interactive Brokers fees
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

Visit broker More

#1 Interactive Brokers
Markets and products

Interactive Brokers markets and products
Interactive Brokers Firstrade Ally Invest E*TRADE Charles Schwab
Fund providers (#) 400 450 600 600 600
Interactive Brokers available products other than funds
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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Firstrade Logo

#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

Visit broker

#2 Firstrade
Fees

Firstrade has low fees when it comes to buying and selling funds.
Firstrade fees
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

Visit broker More

#2 Firstrade
Markets and products

Firstrade markets and products
Interactive Brokers Firstrade Ally Invest E*TRADE Charles Schwab
Fund providers (#) 400 450 600 600 600
Firstrade available products other than funds
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

Visit broker More

Ally Invest Logo

#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

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#3 Ally Invest
Fees

Ally Invest has low fees when it comes to buying and selling funds.
Ally Invest fees
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

Visit broker More

#3 Ally Invest
Markets and products

Ally Invest markets and products
Interactive Brokers Firstrade Ally Invest E*TRADE Charles Schwab
Fund providers (#) 400 450 600 600 600
Ally Invest available products other than funds
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

Visit broker More

E*TRADE Logo

#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

Visit broker

#4 E*TRADE
Fees

E*TRADE has high fees when it comes to buying and selling funds.
E*TRADE fees
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

Visit broker More

#4 E*TRADE
Markets and products

E*TRADE markets and products
Interactive Brokers Firstrade Ally Invest E*TRADE Charles Schwab
Fund providers (#) 400 450 600 600 600
E*TRADE available products other than funds
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

Visit broker More

Charles Schwab Logo

#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

Visit broker

#5 Charles Schwab
Fees

Charles Schwab has high fees when it comes to buying and selling funds.
Charles Schwab fees
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

Visit broker More

#5 Charles Schwab
Markets and products

Charles Schwab markets and products
Interactive Brokers Firstrade Ally Invest E*TRADE Charles Schwab
Fund providers (#) 400 450 600 600 600
Charles Schwab available products other than funds
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

Visit broker More

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:

Best online brokers for funds in the US for 2022
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.

Author of this article

András Iván

Author of this article

Andras has over 5 years of experience in investing and trading equities, options and bonds. He believes that active trading and a more passive investing approach both have merits and everyone can find a strategy that fits their needs. He's eager to help identify the characteristics of specific brokers, so the best match can be found for each client.

András Iván

Broker Analyst

Andras has over 5 years of experience in investing and trading equities, options and bonds. He believes that active trading and a more passive investing approach both have merits and everyone can find a strategy that fits their needs. He's eager to help identify the characteristics of specific brokers, so the best match can be found for each client.

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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