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Best Brokers for Mutual Funds for July 2024

Review Updated
Matt Frankel, CFP®
Ben Gran
By: Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.

See Full Bio

 and  Ben Gran
Ben Gran
Ben Gran

Ben Gran is a freelance writer based in Des Moines, Iowa. He has written for regional banks, fintechs, and major financial services companies. Ben is a graduate of Rice University.

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Our Brokerages Experts

Eric McWhinnie
Check IconFact Checked Eric McWhinnie
Eric McWhinnie
Eric McWhinnie

Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

The Dow Jones Industrial Average, S&P 500, and Nasdaq have all reached record highs in recent months. But you don't need to buy individual stocks to get in on the action. Mutual funds can allow you to invest in the stock market, in bonds, or in several other types of assets, without the guesswork and research involved with selecting individual investments.

Choosing the best mutual fund broker can help you save time, money, and gain better investment opportunities to build wealth for the future. Read on for our picks for the best brokers for mutual funds.

There are a lot of options to compare, even on this page. It can be overwhelming! If you're looking for a place to start, here are some mutual fund brokers our experts recommend and why they like them:

Our 9 Best Brokers for Mutual Funds

Broker/Advisor Best For Commissions Next Steps
Award Icon 2024 Award Winner
SoFi Active Investing Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Mutual funds in an easy app

 Commission:

$0 for stocks, $0 for options contracts
Open Account for SoFi Active Investing
Award Icon 2024 Award Winner
J.P. Morgan Self-Directed Investing Offer Image
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

App-based mutual fund investing

 Commission:

$0 per trade
Open Account for J.P. Morgan Self-Directed Investing
E*TRADE Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Diverse investment needs

 Commission:

Commission-free; other fees apply
Open Account for E*TRADE
Interactive Brokers Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Mutual fund selection

 Commission:

As low as $0 stock trades, lesser of $14.95 or 3% of trade value for mutual funds
Open Account for Interactive Brokers
Fidelity Offer Image
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

No-transaction-fee mutual funds

 Commission:

$0 commission for online U.S. stock and ETF trades, $0-$49.95 for mutual funds
Read Review
Merrill Edge® Self-Directed Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

No-transaction-fee mutual funds

 Commission:

$0 for online stock and ETF trades
Read Review
Award Icon 2024 Award Winner
Ally Invest Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Mutual fund selection

 Commission:

$0 stock and ETF trades
Read Review
Charles Schwab Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Low costs and low mutual fund investment minimums

 Commission:

$0 stock trades and for OneSource mutual funds
Read Review
Vanguard Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Low costs

 Commission:

$0 stock and ETF trades, $0-$20 for mutual funds
Read Review
A note from our Head of Product Ratings, Robin Hartill

When we researched online brokers to create this list of brokerages, some of the things we looked for were low costs, a variety of account types, and great customer service ratings. Everyone's investing journey is different, but I've found these three factors are important for anyone to have a great investing experience.

How do I choose a broker for mutual funds?

Here are a few features to look for when choosing the best broker for mutual funds:

  • Low fees: The best brokers for mutual funds offer $0 commissions and no-transaction-fee mutual funds for low-cost investing.
  • Wide range of mutual funds: The best brokers for mutual funds have thousands of diversified funds to choose from, to suit a wide range of investment goals.
  • Low investment minimums: The best brokers for mutual funds let you invest with as little as $1, with no account minimums. You don't need thousands of dollars to invest in mutual funds.
  • Easy-to-use broker app: Want to invest from your phone, at home or on the go? The best brokers for mutual funds have well-designed mobile apps that make it easy to view and manage your investments anytime.

Before the rise of online brokerages and low-cost trading, it used to be much more complex and expensive for everyday investors to buy mutual funds. The best brokers for mutual funds have made it easier for investors like you to get access to the growth opportunities of the stock market.

SoFi Active Investing
Open Account for SoFi Active Investing

On SoFi Active Investing's Secure Website.

Compare the best brokers for mutual funds

Ratings Methodology
Award Icon 2024 Award Winner
SoFi Active Investing

SoFi Active Investing

Open Account

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Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

SoFi is a rare app-based investment platform that supports mutual fund investing, and offers investments, bank accounts, credit cards, loans, and more in a single easy-to-use platfom.

Fees:

$0 for stocks, $0 for options contracts

Account Minimum:

$0

Special Offer Circle with letter I in it. For new accounts: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%.

Get up to $1,000 in stock when you fund a new Active Invest account.

Open Account for SoFi Active Investing

On SoFi Active Investing's Secure Website.

Award Icon 2024 Award Winner
J.P. Morgan Self-Directed Investing

J.P. Morgan Self-Directed Investing

Open Account

Double arrow

Our Rating:

Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

One of the few brokers we've come across with a $0 mutual fund commission. The fact that you can manage your J.P Morgan self-directed and separate robo-advisor accounts under one roof is a nice plus.

Fees:

$0 per trade

Account Minimum:

$0

Special Offer

Earn a bonus up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account (retirement or general) with qualifying new money by 7/19/2024.

Open Account for J.P. Morgan Self-Directed Investing

On J.P. Morgan Self-Directed Investing's Secure Website.

E*TRADE

E*TRADE

Open Account

Double arrow

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

An especially smart choice for investors who want to buy mutual funds and other types of investments. No transaction or commission fees for mutual funds. Shines with its robust lineup of no-load mutual funds. Also offers a fantastic trading platform, educational resources, and third-party research.

Fees:

Commission-free; other fees apply

Account Minimum:

$0

Special Offer Circle with letter I in it. Open a new eligible E*TRADE brokerage account, fund your account within 60 days of opening, and earn a cash bonus of up to $1,000, depending on the size of your deposit. Offer good for one use per customer, on a single account.

Open and fund and get up to $1,000

Open Account for E*TRADE

On E*TRADE's Secure Website.

Interactive Brokers

Interactive Brokers

Open Account

Double arrow

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Packs in more than 19,000 no-transaction-fee mutual funds. While it does charges a competitive commission for other mutual funds, the selection of funds is the real reason the company gets a spot on the list. Interactive Brokers offers more than 48,000 mutual funds in total.

Fees:

As low as $0 stock trades, lesser of $14.95 or 3% of trade value for mutual funds

Account Minimum:

$0

Open Account for Interactive Brokers

On Interactive Brokers' Secure Website.

Fidelity

Fidelity

Our Rating:

Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Fidelity offers its highly regarded mutual fund lineup with no commission, along with more than 3,000 others with no transaction fee.

Fees:

$0 commission for online U.S. stock and ETF trades, $0-$49.95 for mutual funds

Account Minimum:

$0

Read Review
Merrill Edge® Self-Directed

Merrill Edge® Self-Directed

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Merrill Edge® Self-Directed offers thousands of no-transaction-fee funds. High-balance Merrill Edge® Self-Directed brokerage accounts also link up to other Bank of America accounts so you can qualify for the bank's Preferred Rewards program, which is the gold standard for loyalty banking rewards.

Fees:

$0 for online stock and ETF trades

Account Minimum:

$0

Read Review
Award Icon 2024 Award Winner
Ally Invest

Ally Invest

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Ally Invest offers access to more than 17,000 no-transaction-fee mutual funds. This makes it a good choice for investors who want a wide variety of mutual funds to select, without worrying about incurring additional fees from the brokerage.

Fees:

$0 stock and ETF trades

Account Minimum:

$0

Read Review
Charles Schwab

Charles Schwab

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

We're big fans of Charles Schwab's proprietary mutual funds. Some have no expense ratio at all and have minimum investments of $100 or less. Clients also get access to thousands of no-transaction-fee mutual funds and a network of hundreds of branches for in-person help.

Fees:

$0 stock trades and for OneSource mutual funds

Account Minimum:

$0

Read Review
Vanguard

Vanguard

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Vanguard is well known for its own low-cost index funds, but you can't invest in many commission free anywhere but Vanguard. In addition to its own standout offerings, investors can access thousands of other funds with no transaction fee.

Fees:

$0 stock and ETF trades, $0-$20 for mutual funds

Account Minimum:

$0

Read Review

INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Editor's Note: TD Ameritrade is transitioning to Charles Schwab

TD Ameritrade has been acquired by Charles Schwab, and the company expects all accounts to be transitioned by the end of 2024. We've removed TD Ameritrade from our best-of lists to align with this development. Here at The Ascent, you can trust that we're constantly evaluating our top broker picks to bring you current recommendations.

Reviews of the best brokers for mutual funds

SoFi Active Investing

Best broker for mutual funds for investors who: Want an app-based investment platform

SoFi Active Investing offers a modern app-based investing experience that also supports mutual funds. Its support of mutual funds makes SoFi fairly unique, because many other online brokers don't offer mutual funds. SoFi also offers banking products, credit cards, and loans, all in one platform.

Why mutual fund investors might love SoFi Active Investing

  • More than 6,000 commission-free mutual funds: Choose from a wide range of mutual funds with no trading costs.
  • $0 account minimum: You don't need much money to open a SoFi Active Investing account.
  • Invest in IPOs: SoFi Active Investing lets investors participate in initial public offerings (IPOs), with no minimum investment amount.
  • 1% match on IRA contributions: SoFi will match your contributions to a traditional or Roth IRA, up to 1% (terms apply).

Why mutual fund investors might not choose SoFi Active Investing

  • Some investment accounts are not available: A few types of investment accounts, like solo 401(k)s, SIMPLE IRAs, UGMA/UTMA accounts, and trust accounts, are not supported by SoFi.
  • Lack of advanced trading tools: SoFi Active Investing does not offer certain advanced trading features like charting tools and stock research.

Read our full review of SoFi Active Investing.

J.P. Morgan Self-Directed Investing

Best broker for mutual funds for investors who: want self-directed investing and optional robo-advisory service

J.P. Morgan Self-Directed Investing charges $0 commissions on mutual funds. Because it's part of J.P. Morgan Chase & Co., this mutual fund broker is also convenient for Chase banking customers. You can manage your investments from within the Chase mobile app, and can choose self-directed investing or robo-advisory service.

Why mutual fund investors might love J.P. Morgan Self-Directed Investing

  • $0 mutual fund commissions: This mutual fund broker is one of the best choices for low-cost investing.
  • Self-directed and automated investing: Choose your own investments or use J.P. Morgan Investing for automated robo-advisory services -- it's all in one platform.
  • Margin loans: J.P. Morgan Self-Directed Investing offers margin loans, with rates starting at Prime + 4.75% based on how much you borrow.
  • Stock research: Investors get access to J.P. Morgan's proprietary stock research, covering more than 1,200 publicly traded companies.

Why mutual fund investors might not choose J.P. Morgan Self-Directed Investing

  • Some investment accounts are not offered: J.P. Morgan Self-Directed Investing only offers a few types of accounts, like taxable brokerage accounts, and traditional and Roth IRAs.
  • No-frills broker interface: The J.P. Morgan Self-Directed Investing experience is contained in the Chase mobile app, so it's easy to use but is lacking in advanced trading features. Day traders who want more professional grade trading tools might want a different broker.

Read our full review of J.P. Morgan Self-Directed Investing.

E*TRADE

Best broker for mutual funds for investors who: want thousands of no-fee mutual funds

E*TRADE offers more than 6,000 mutual funds, with $0 commissions for U.S.-based funds. This isn't just a great broker for mutual funds -- E*TRADE supports a wide range of investments and accounts. If you want an easy-to-use all-in-one broker for mutual funds and more, E*TRADE can deliver.

Why mutual fund investors might love E*TRADE

  • Thousands of mutual funds: E*TRADE gives you access to more than 6,000 mutual funds, with $0 trading costs for U.S.-based funds.
  • Wide range of account types: E*TRADE has one of the widest selections of investment accounts we've seen from any brokerage -- from traditional and Roth IRAs to custodial accounts and Coverdell ESA accounts.
  • Highly rated mobile app: The E*TRADE mobile app gets 4.6 stars on the App Store and 4.5 stars on Google Play.
  • Power E*TRADE platform with advanced research and trading tools: More than most discount brokers, E*TRADE offers advanced stock research, charting, screeners, and other trading tools -- making this platform a good choice for active investors, as well as low-cost mutual fund investors.

Why mutual fund investors might not choose E*TRADE

  • Margin rates are high: E*TRADE offers margin loans, but its margin loan rates are higher than we've seen from most other brokerages.

Read our full review of E*TRADE.

Interactive Brokers

Best broker for mutual funds for investors who: want the widest selection of mutual funds

Interactive Brokers offers a shockingly vast selection of mutual funds: more than 48,000 mutual funds, including more than 19,000 no-transaction-fee mutual funds. Its fees can be a bit complicated and Interactive Brokers might not be the best choice for beginning investors. But mutual fund investors who are serious about getting the widest range of investment opportunities should consider Interactive Brokers.

Why mutual fund investors might love Interactive Brokers

  • 48,000 mutual funds: No other broker can beat the sheer volume of mutual funds offered by Interactive Brokers.
  • 19,000 no-fee mutual funds: Of the 48,000 mutual funds offered by Interactive Brokers, 19,000 of them have no transaction fees.
  • Wide range of investment accounts: Interactive Brokers supports a vast array of brokerage account types, including Advisor accounts, Trust accounts, UGMA/UTMA accounts, and more.
  • Low margin rates: If you want to use margin loans as part of your investing strategy, Interactive Brokers has some of the lowest-cost margin loans of any brokerage.
  • Excellent advanced features and trading tools: Interactive Brokers is not a no-frills, discount investing app for beginners -- it is a trading platform for serious, hands-on, active investors, with professional grade research, charting, and trading tools.

Why mutual fund investors might not choose Interactive Brokers

  • Mutual fund fees: It's true that 19,000 of Interactive Brokers' mutual funds have no fees -- but the other funds charge fees of $14.95 or 3% of deal value (whichever is less).
  • Stock research isn't free: Compared to some other brokers, Interactive Brokers does not provide a lot of stock market research for free; you might have to pay extra on an a la carte basis.
  • Interface and features can be overwhelming to beginners: Interactive Brokers is designed more for professional traders and financial advisors; if you want a simple, easy-to-use interface, other brokerages could be a better choice.

Read our full review of Interactive Brokers.

Fidelity

Best broker for mutual funds for investors who: want $0 mutual fund fees from a big-name brokerage

Fidelity is one of the biggest names in investing, and for good reason: it offers thousands of mutual funds with $0 trading costs. If you want the reassurance of using a big brokerage, with all the features and tools that most everyday investors might require, Fidelity can be a great choice as a broker for mutual funds.

Why mutual fund investors might love Fidelity

  • Thousands of $0 commission mutual funds: Fidelity offers more than 3,000 no-transaction-fee mutual funds -- including its own low-cost Fidelity mutual funds, and funds from other companies.
  • One-stop shop for investing: Fidelity manages $5 trillion of assets and offers a wide range of tools and features that beginning investors or advanced investors might need.
  • Wide range of accounts: Fidelity supports brokerage accounts, IRAs, 529 plans, and more.
  • Research and education: Fidelity provides free access to a wide range of research reports from more than 20 independent research firms.

Why mutual fund investors might not choose Fidelity

  • Some brokers offer more mutual funds: Fidelity's selection of mutual funds is impressive and will meet the needs of most mutual fund investors -- but if you want the absolute widest range of mutual funds, Interactive Brokers is a better choice.
  • Margin loan rates are not competitive: Fidelity offers margin loans, but its margin loan rates are higher than most of the best brokers for margin.

Read our full review of Fidelity.

Merrill Edge® Self-Directed

Best broker for mutual funds for investors who: want low-cost mutual funds with research and investing tools

Merrill Edge® Self-Directed is a trading platform with thousands of no-transaction-fee mutual funds, along with some advanced research and trading capabilities for active investors. This brokerage is owned by Bank of America, which offers some loyalty rewards and discounts on rates and fees, based on how you use your accounts -- so Merrill Edge® Self-Directed can be a good choice for Bank of America banking customers.

Why mutual fund investors might love Merrill Edge® Self-Directed

  • Thousands of mutual funds with no fees: Merrill Edge® Self-Directed offers thousands of mutual funds with no commissions -- but some funds might charge upfront or back-end loads (as a percentage of the amount invested).
  • Access to stock market research: This brokerage offers access to several research sources, like BofA equity research, and data pulled from Morningstar and Lipper.
  • Margin loans are available: Merrill Edge® Self-Directed investors can get margin loans. Contact Merrill Lynch for margin rates.
  • Some advanced trading tools: Mutual fund investors often prefer to just "set it and forget it" by investing in diversified funds -- but more hands-on, active traders will also find some stock-picking tools to enjoy on this platform.

Why mutual fund investors might not choose Merrill Edge® Self-Directed

  • Mobile app is not well-reviewed: Although the Merrill Edge® app for iOS gets 4.6 stars, the Android version is not so highly rated -- only 3.3 stars on Google Play.
  • Bank of America Preferred Rewards are complex: If you have $20,000 (or more) across of your accounts with Bank of America and Merrill Edge® Self-Directed, you can get certain rewards and benefits from Bank of America Preferred Rewards -- but the benefits are complex and might not be significant for most people.

Read our full review of Merrill Edge® Self-Directed.

Ally Invest

Best broker for mutual funds for investors who: want $0 commission mutual funds with no investment minimums

Ally Invest offers an impressive range of 17,000 mutual funds, and charges $0 commissions for mutual fund investors. (However, not all of these 17,000 funds are no-load mutual funds; some of the funds might charge fees -- but Ally does not.) Ally Invest gives you access to a wide array of investment opportunities with no minimums and an easy-to-use interface, making it a great choice for beginning investors.

Why mutual fund investors might love Ally Invest

  • 17,000 mutual funds: Many other low-cost brokerages do not offer such a wide range of mutual funds -- Ally Invest has one of the biggest selections in the investment industry.
  • Well-reviewed iOS app: The Ally mobile app gets great reviews on the App Store (4.7 stars) -- you can use this app for Ally Invest and Ally bank accounts.
  • Robo-advisor and personal advisor services available: In addition to Ally Invest's online brokerage for self-directed investing, Ally Invest Robo Portfolios for automated investing, and personal advice from dedicated human financial advisors (minimum assets required).

Why mutual fund investors might not choose Ally Invest

  • Margin loan rates are not competitive at lower amounts: Ally Invest offers margin loans, but its margin interest rates are not as low as we've seen from some other brokers -- and you'll pay higher interest on lower amounts of margin loans.
  • Android app gets bad ratings: The Ally mobile app only gets 2.3 stars on Google Play, which is one of the lowest ratings we've seen for any investing platform or banking app.
  • Penny stock fee: If you want to buy individual stocks, Ally's commissions might end up being more expensive for lower-priced stocks.
  • Lack of advanced trading tools: If you want professional grade stock trading tools, research, and features for day trading, Ally Invest might not be the best broker.

Read our full review of Ally Invest.

Charles Schwab

Best broker for mutual funds for investors who: want comprehensive investment options from a big low-cost brokerage

Charles Schwab is, like Fidelity and Vanguard, one of the biggest names in low-cost investing and discount brokerages. Schwab offers thousands of no-transaction-fee mutual funds, and can support a wide range of investment accounts. Whether you're a beginning investor or a more experienced investor who wants advanced trading tools, Charles Schwab can be a great choice as a broker for mutual funds, stocks, ETFs, and more.

Why mutual fund investors might love Charles Schwab

  • More than 17,000 mutual funds: Very few brokers can beat, or compete with, Charles Schwab's vast selection of mutual funds -- more than 17,000 funds, including over 4,000 funds with no transaction fees and no loads.
  • Wide range of investment accounts: Along with the usual brokerage accounts and IRAs, Charles Schwab supports other account types, like 529 plans, custodial accounts, business accounts, and more.
  • Hundreds of branches: Want to talk to a real person in real life about your mutual fund investing? Charles Schwab has hundreds of branches for in-person support.
  • Free research: Schwab investors get access to research from sources like Argus, Credit Suisse, MarketEdge, Morningstar, and more.
  • Advanced trading tools: Charles Schwab offers its thinkorswim platform for active, hands-on investors who want professional grade tools for analysis, charting, and trading.

Why mutual fund investors might not choose Charles Schwab

  • Some mutual funds charge fees: Although Charles Schwab has eliminated most commissions and has thousands of no-transaction-fee mutual funds, some mutual funds might charge a fee of up to $74.95.
  • Android app is not well-reviewed: iOS users love the Schwab mobile app (4.8 stars), but this broker's app does not get good ratings from Android users -- only 2.3 stars on Google Play.
  • Margin rates are not the best: If you want to use margin to borrow against the value of your investment holdings, Charles Schwab offers margin loans -- but the rates are not as competitive as the best brokers' margin loans.

Read our full review of Charles Schwab.

Vanguard

Best broker for mutual funds for investors who: want passive investing in low-cost index funds

Vanguard is one of the largest and most influential investment firms, with more than $8.6 trillion of assets under management. It has a reputation for offering low-cost investing for hands-off investors. If you want low-cost mutual funds, Vanguard could be a good choice.

Why mutual fund investors might love Vanguard

  • Thousands of no-transaction-fee mutual funds: Vanguard offers hundreds of its own funds, and thousands of mutual funds from other companies -- many of these are no-transaction-fee funds.
  • Margin loans are available: Vanguard offers margin loans for investors who want to borrow against the value of their investment holdings.
  • Wide range of account types: If you want to open an IRA, brokerage account, 529 plan, custodial account, or several other types of investment accounts, Vanguard can help.
  • Well-reviewed iOS app: The Vanguard mobile app gets 4.7 stars on the App Store.

Why mutual fund investors might not choose Vanguard

  • High minimum investment requirements: Vanguard requires minimum investments of at least $1,000-$3,000 for its mutual funds -- but only $1 for ETFs.
  • Some funds charge commissions: Some non-Vanguard mutual funds (sold through Vanguard) might charge a commission of up to $20.
  • Android app gets lower ratings: The Vanguard mobile app is not as well-liked by Android users; it gets 3.5 stars on Google Play.
  • Lack of advanced research and trading tools: If you want a more hands-on approach to investing, Vanguard is not the best choice -- it's not designed for active traders and stock-pickers.

Read our full review of Vanguard.

How to open an account with a brokerage for mutual funds

If you're ready to invest in mutual funds, you'll need to start by opening a brokerage account. Here are a few steps that the best brokers for mutual funds will likely ask you to complete:

  1. Choose the brokerage where you want to buy mutual funds.
  2. Click or tap the button on the broker's website or mobile app to apply for a new account.
  3. Fill out the brokerage account application. This could include a few details about your home address, age, financial history, income, investment goals, and more.
  4. Provide identifying information requested by the brokerage (Social Security number, driver's license, etc.).
  5. Fund your brokerage account -- you can put money in via external bank account (ACH transfer), asset transfer from another brokerage, wire transfer, or check by mail.

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How to get started with investing in mutual funds

The easiest way to get started with investing in mutual funds is to open a brokerage account through one of the best brokers for mutual funds, and buy mutual funds from a wide range of companies. If you're new to investing, check out our list of best stock brokers for beginners.

Many of the best brokers for mutual funds no longer charge commissions on mutual funds, and offer a wide range of no-transaction-fee mutual funds. Some brokers still have a few mutual funds that charge commissions or loads, but it can be worth paying a fee to get the right fund for your investment goals.

After you open a brokerage account, don't assume that your investment choices are limited only to mutual funds. You can choose from thousands of exchange-traded funds (ETFs), many different types of stocks, bonds, and money market funds in a brokerage account. The best stock brokers often have other value-adding features as well, such as stock research, educational resources, and more.

Ready to start choosing your mutual fund investments? Each mutual fund should offer key facts and details about its performance, portfolio composition, price, and fees.

The best brokers for mutual funds make it easy to investigate whether a particular fund is the right choice for your investment goals -- such as whether it's a higher-risk (but higher-growth potential) fund, or a lower-risk (but lower-growth) fund.

What investments can I buy with the best brokers for mutual funds?

Many online stock brokers offer a selection of mutual funds customers can invest in, including index funds and actively managed funds. With low or no commissions, low fees, and a focus on low-expense-ratio index funds, online brokers can be a particularly affordable way to invest in mutual funds.

Most online stock brokers also let you invest in exchange-traded funds (ETFs), a newer way for investors to mutually benefit from bundled funds. Rather than a fund that actively invests pooled money into various stocks, an ETF is a group of securities bundled into a single entity that you can invest in like a traditional stock.

Mutual funds and ETFs can include a wide range of investment assets. Here are a few examples of what's in a mutual fund and how the investments work.

Stock investing with mutual funds

One common type of mutual fund is a stock mutual fund. Instead of choosing individual stocks, a stock mutual fund lets you own a wide range of stocks, all in one investment.

Stock mutual funds can include index funds (like the S&P 500) or actively managed funds where the fund manager tries to pick a combination of stocks that they believe are likely to earn ROI to suit the goals of the fund's investors. Mutual funds can invest in particular stock categories, industries, or sectors, or invest based on certain themes and goals.

Bond investing with mutual funds

Mutual funds can also invest in bonds. Whether it's long-term or short-term, federal government bonds, municipal bonds, or corporate debt, there are many ways to invest in bonds and earn yield. Mutual funds can also include a blend of stocks and bonds in their portfolio.

Mutual funds for other assets

Stocks and bonds are not the only investments you can buy with mutual funds. You can also invest in short-term money market funds that deliver similar yields as the best savings accounts or money market accounts. There are also mutual funds that invest in real estate, cryptocurrency, and other types of assets.

How much money do you need to start investing in mutual funds?

During the past few years in the investment world, it's become commonplace for online brokers to offer low-cost investing where you can get started with just a few dollars. Many of the best brokers for mutual funds do not require you to have much money to start buying mutual funds.

But mutual funds are a bit different than ETFs or buying individual stocks -- some mutual funds will require you to commit more money upfront than it takes to buy fractional shares of stock with a few dollars. The number to look out for here: is "minimum investment requirement." Some mutual funds have higher minimum investment requirements than others.

Here are a few examples of minimum investment requirements for mutual funds from some of the best brokers.

Charles Schwab

  • $100 minimums for bond and equity mutual funds managed by Charles Schwab

E*TRADE

  • $500 minimum investment for E*TRADE prebuilt portfolios of mutual funds
  • $25 per recurring investment in automatic investing mutual funds

Vanguard

Investor shares:

  • $1,000 for Vanguard Target Retirement funds and Vanguard STAR® Fund
  • $3,000 for most actively managed Vanguard funds

Admiral shares:

  • $3,000 for most index funds
  • $50,000 for most actively managed funds
  • $100,000 for certain sector-specific funds

Keep in mind that "minimum investment requirements" for mutual funds are not the same as account minimums. You can often open a brokerage account with $0, but if you want to buy certain mutual funds after opening the account, you might need a specific amount of money to afford that mutual fund's minimum investment requirement.

Want to avoid the higher minimum investment requirements of mutual funds? Consider investing in ETFs. These funds are more flexible than mutual funds, and can often let you invest with as little as $1.

Or if you want mutual funds with no minimum investment requirement, check out Fidelity -- this broker offers several mutual funds that require zero minimum investment.

What are the risks of mutual fund investing?

The risks of mutual fund investing are similar to the risks of investing in stocks or bonds or any other securities. Stocks can be volatile. Stock prices (and bond prices, and bond yields) can go up or down at any time for complicated reasons beyond your control.

Many mutual funds (unless they're low-risk money market funds) have a risk of loss -- the price of your mutual fund shares could go down in the short term or in the long term. You could lose some or all of your investment.

However, mutual funds are generally considered to be less risky than investing in individual stocks. With mutual funds, you get built-in diversification by buying lots of stocks at once. Your money is invested not just in one company's stock or in one bond, but in a wide range of stocks and bonds.

Be aware of potential fees and risks before choosing any mutual fund or other investment. Make sure you read the fine print on your mutual fund so you understand exactly what you're investing in -- which stocks and bonds are in its portfolio. See how your mutual fund has performed in the past few years, and get details on how much it costs in fees.

But remember that past performance is no guarantee of future results -- even the highest-performing mutual fund of the last ten years could go on a losing streak.

What is a mutual fund?

A mutual fund is an investment vehicle that pools investors' money together to invest in a common purpose.

For example, let's say a technology-focused mutual fund receives $100 million in investor capital. Its managers would take that money and invest in a portfolio of technology stocks. If the portfolio rises in value, all the fund's investors mutually benefit.

Our brokerage rating methodology

At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology

FAQs

  • Investors can buy mutual funds directly from the fund provider. Many mutual funds have a direct plan where investors can buy mutual funds (usually through their website), without a brokerage account. Investors may also buy a mutual fund through their workplace retirement account, such as a 401(k) or 403(b).

  • Investors should look for a mutual fund broker that has a strong industry reputation, reliable track record, a wide range of mutual funds, low-cost mutual funds, and educational content and tools. Investors should also look to see what other fees the mutual fund broker may charge, up-to-date security standards, as well as a trading platform that best suits their trading needs.

  • Most mutual funds charge fees in the form of expense ratios that are accounted for in the price of the mutual fund. Expense ratios can be as high as 2.5% every year, but there are many high-quality mutual funds with very low expense ratios. Some mutual funds also charge sales commissions, also known as loads. Again, there are many well-known mutual fund companies that don't charge loads, and this is becoming more common in the industry. These fees combined cover costs for the mutual fund company, such as 12b-1 fees (marketing costs) and other routine operating expenses.

Brokerages we evaluated for consideration on this page: Acorns, Ally Invest, Axos Self-Directed Trading, Betterment, Cash App Investing, Charles Schwab, Delphia, Domain Money, Ellevest, Empower, eToro Brokerage, E*TRADE Core Portfolios, E*TRADE, Fidelity, Fidelity Cash Management, Fidelity Go®, Firstrade, FOREX.com, Interactive Brokers, J.P. Morgan Self-Directed Investing, M1 Finance, Magnifi, Marcus Invest, Merrill Edge® Self-Directed, Moomoo, NinjaTrader, Personal Capital, Plynk, Prosperi Academy, Public, Robinhood, Rocket Dollar, Schwab Intelligent Portfolios, SoFi Active Investing, SoFi Automated Investing, Stash, Stockpile, Tastytrade, Titan, Tornado App, TradeStation, Tradier, Vanguard, Vanguard Digital Advisor®, Wealthfront, Webull, Zacks Trade.