Considering purchasing mutual funds for your retirement or other financial goals? Choosing the best online platform for mutual fund investments can be overwhelming.
Experts in personal finance advise buying funds directly from the mutual fund company to save on fees. Another cost-effective option is to open a brokerage account with a mutual fund company. For instance, Fidelity Investments offers Fidelity funds, Vanguard Group offers Vanguard funds, and so on.
When comparing platforms, look at the range of mutual funds offered, fees charged, and any early redemption fees. Actively managed accounts typically have higher expense ratios compared to passive index funds, which aim to mirror market performance.
Here’s a breakdown of some of the top mutual fund brokers for 2024 to help you make an informed decision:
Fidelity Investments
Fidelity Investments introduced four zero-fee funds in 2018, setting a new standard in the industry. They also offer nearly 3,400 no-transaction-fee mutual funds and comprehensive research tools. Fidelity is known for its iconic Magellan fund and full-view feature for managing all financial accounts in one place.
- Minimum amount to open an account: $0
- Standard pricing: Free for Fidelity funds and other non-transaction-fee funds, $49.95 for non-Fidelity transaction-fee funds
- Mutual fund highlight: Four zero-fee index funds, nearly 3,400 no-transaction-fee mutual funds
Charles Schwab
Charles Schwab is known for its low-cost investing approach and offers nearly 4,300 no-load, no-transaction-fee mutual funds. While outside funds may incur fees, Schwab provides excellent customer service, research tools, and a user-friendly platform.
- Minimum amount to open an account: $0
- Standard pricing: $0 on non-transaction-fee funds, up to $74.95 for others
- Mutual fund highlight: Nearly 4,300 no-load, no-transaction-fee mutual funds
E-Trade Financial
E-Trade offers over 6,000 no-load, no-transaction-fee mutual funds and eliminated commissions for online trades in 2023. Their research tools and screener help investors make informed decisions, making E-Trade a valuable option for mutual fund investors.
- Minimum amount to open an account: $0
- Standard pricing: $0
- Mutual fund highlight: More than 6,000 no-load, no-transaction-fee mutual funds
Ally Invest
Ally Invest offers access to over 17,000 mutual funds and reduced its commission on no-load funds to $0 in 2023. Known for its digital experience and customer service, Ally Invest is a top choice for mutual fund investors.
- Minimum amount to open an account: $0
- Standard pricing: $0 on no-load funds
- Mutual fund highlight: Commission on no-load funds reduced to $0 in 2023
Vanguard
The Vanguard Group offers over 160 no-transaction-fee Vanguard mutual funds and more than 3,000 no-transaction-fee funds from other providers. While known for index funds, Vanguard also offers actively managed funds at competitive prices.
- Minimum amount to open a brokerage account: $0
- Standard pricing: Free for Vanguard funds and other no-transaction-fee funds, $8-$20 for others
- Mutual fund highlight: Renowned for low-cost index funds
J.P. Morgan Self-Directed
J.P. Morgan Self-Directed offers over 2,800 no-transaction-fee mutual funds, making it a top choice for investors. Their customizable screener and research tools cater to both new and experienced investors.
Explore these top mutual fund brokers to find the right fit for your investment journey.
The screener is accessible online and through the mobile app, allowing for easy fund research from any location. If you’re interested in a variety of investment options, J.P. Morgan offers stocks, bonds, funds, options, Treasuries, and brokered CDs. Existing Chase customers can conveniently view all their Chase accounts on a single dashboard.
Interactive Brokers caters to advanced traders and professionals but also offers nearly 18,000 funds with no transaction fees, out of more than 43,000 funds available. The broker expanded its mutual-fund platform in 2020, providing investors with the largest selection of no-load mutual funds.
Merrill Edge provides over 800 no-transaction-fee funds and offers tools like a screener and Select Funds choices to help investors build their portfolio. They also offer an automatic investing plan for mutual fund investments.
Firstrade offers more than 11,000 mutual funds without charging commissions. Investors can access fund commentary and profiles easily on the platform and use the advanced screener to search for funds based on various criteria. Make sure to check the fund details to avoid any additional transaction fees. Passively managed funds typically have lower fees compared to actively managed funds due to their index-tracking approach. Additionally, investors should be aware of early redemption fees that some mutual funds charge for short-term trading, further highlighting the benefits of passive investing. It is advisable for investors of all levels, from beginners to experienced, to consider mutual funds as a cost-effective way to diversify their portfolios. Notably, renowned investor Warren Buffett has endorsed index funds, such as those based on the S&P 500, which can be easily accessed through mutual funds. When it comes to the initial investment amount, mutual funds may require a minimum initial investment, typically around $2,500 to $3,000, but subsequent contributions can be made with smaller amounts. Furthermore, investors should be mindful of sales loads or commissions that some funds charge, although opting for “no load” funds can help avoid these additional costs. To ensure that the original HTML tags, images, HTML header, and key points are preserved, we will seamlessly integrate the content into a WordPress platform. This will allow for a unique presentation while maintaining the integrity of the original design and structure. By transferring the content to WordPress, we can enhance the user experience and provide additional functionality such as responsive design and easy editing capabilities. This will help to optimize the content for search engines and improve overall usability.