Whether you're investing in mutual funds for long-term income or trading ETFs for portfolio flexibility, choosing the right online broker can make a huge difference in cost, user experience, and investment options. In 2025, investors have more access and lower fees than ever before, but not all brokers are created equal.
This guide compares the best online brokers for mutual funds and ETFs, based on fees, research tools, account types, customer support, and fund selection.
What to Look for in an Online Broker for Mutual Funds and ETFs
When choosing a broker, prioritize the features that match your investment goals:
No Transaction Fees (NTFs) on mutual funds
Commission-free ETF trading
Robust research tools and screeners
Strong reputation and user experience
Access to retirement accounts (IRA, Roth IRA, etc.)
Top Online Brokers for Mutual Fund Investors
1. Fidelity Investments
NTF Mutual Funds: Over 3,500
Minimum Investment: $0 on many funds
Tools: Screeners, Morningstar data, automatic rebalancing
Highlights: No annual account fees, strong customer service, excellent mobile app
2. Charles Schwab
NTF Mutual Funds: Over 3,000
Minimums: $0 on Schwab funds, low for third-party funds
Tools: Fund compare tool, tax-efficiency reports
Highlights: Robust retirement planning tools and local branches
3. Vanguard
Focus: In-house low-cost mutual funds and ETFs
Minimums: $1,000 to $3,000 depending on fund
Tools: Basic but reliable fund research
Highlights: Best for index investors and long-term strategies
4. TD Ameritrade (Now part of Charles Schwab)
Strengths: Extensive research tools, intuitive thinkorswim platform
Fees: $0 ETF trades, many no-load mutual funds
Transition: Integrated into Schwab’s ecosystem in 2024–2025
5. E*TRADE
NTF Funds: 4,400+ mutual funds
Research: Morningstar ratings, custom screeners, analyst reports
Highlights: Highly rated app and robust web platform
Best Online Brokers for ETF Investors
1. Fidelity
ETF Trades: Commission-free
Selection: All major ETF families available
Highlights: Fractional share investing and thematic ETFs
2. Charles Schwab
Schwab ETFs: Ultra-low expense ratios
Tools: Portfolio builder, ETF screener, Smart Beta filters
Highlights: Good for beginners and long-term holders
3. Vanguard
ETFs: Wide selection of low-cost index ETFs
Strengths: Trusted brand for passive investing
Limitations: Fewer short-term trading tools
4. Merrill Edge
Commission-Free ETFs: 800+ choices
Platform: Integrated with Bank of America
Highlights: Strong rewards program for Preferred Rewards clients
5. Webull
Strengths: Tech-savvy platform, real-time data
Drawbacks: Limited mutual fund access
Best For: Active ETF traders seeking no-frills execution
Comparison Chart: Mutual Fund & ETF Broker Features (2025)
| Broker | NTF Mutual Funds | ETF Commission | Fund Screeners | IRA Support | Best For |
|---|---|---|---|---|---|
| Fidelity | 3,500+ | $0 | Yes | Yes | All-around investing |
| Charles Schwab | 3,000+ | $0 | Yes | Yes | Beginners & retirement |
| Vanguard | Vanguard funds | $0 | Basic | Yes | Index & passive investors |
| E*TRADE | 4,400+ | $0 | Yes | Yes | Fund selection + research |
| Merrill Edge | 2,000+ | $0 | Moderate | Yes | BofA clients, reward seekers |
| Webull | Limited | $0 | Limited | Yes | Active ETF traders |
Tips for Choosing the Right Broker
Check fees and fund availability: Not all “commission-free” platforms are equal
Prioritize tools that match your style: Long-term vs short-term, DIY vs automated
Look at account minimums: Especially important for mutual fund investors
Consider customer support and app ratings: Especially if you're new to investing
Final Thoughts
The best online broker for mutual funds or ETFs depends on your goals:
Fidelity and Charles Schwab offer the broadest tools and fund selection
Vanguard is ideal for passive, long-term index fund investors
Webull and Merrill Edge cater to tech-savvy traders or BofA clients
Whichever you choose, look for a platform that balances cost, fund variety, and user experience so your investment strategy can thrive.