To make finding a brokerage even more convenient, we’ve compiled this list of the best brokers for mutual funds. All of the companies on this list offer low-cost mutual funds, in addition to other services for your portfolio.
1. E*TRADE
E*TRADE was one of the first online discount brokers to make a big splash in the industry. (Remember those old vomiting-baby ads?)
The broker currently offers more than 4,400 no-load, no-transaction-fee mutual funds. For funds that do require a transaction fee, it’s only $19.99. This is much cheaper than many stock brokers that offer mutual funds, but stick to the no-transaction-fee list if possible
Like Ally Invest, E*TRADE recently did away with commissions on stock, options, and ETF trades. That makes E*TRADE an all-around excellent choice if you need a stock broker.
2. TD Ameritrade
Here at Investor Junkie, we’ve considered TD Ameritrade one of our favorite stock brokers. It offers comprehensive trading tools and platforms that can help you maximize your investing experience. Plus, now stock and ETF trades are commission-free.
The fact that TD Ameritrade also offers over 3,500 commission-free mutual funds is just icing on the cake. Keep in mind that there are some no-load funds that do require a $49.95 commission.
3. Charles Schwab
Charles Schwab is a behemoth among brokers. Simply put, it’s the largest stock broker in the country.
Through the Schwab Mutual Fund OneSource service, the brokerage offers over 4,000 no-load, no-transaction-fee mutual funds. The minimum for many of these funds is only $100.
All other funds cost up to $74.95 per purchase.
Schwab also provides helpful tools and research that can help you pick the mutual funds that are right for your portfolio. Plus it has also eliminated transaction fees for most stock, options and ETF purchases.
4. Fidelity
Fidelity is one of the longest-standing stock brokers, and it’s considered a global leader in mutual funds. The Fidelity FundsNetwork offers more than 10,000 funds from Fidelity and other companies.
Fidelity also provides the Mutual Fund Evaluator, a tool that lets you filter and sort through the broker’s library of funds.
The broker offers four zero-expense ratio index mutual funds, but there are hundreds that carry no transaction fees. Fidelity requires no minimum to invest. Non-Fidelity funds carry a transaction fee of $49.95 per purchase.
Fidelity is now also a fee-free stock broker for stocks, options and ETFs.
5. Vanguard
A true pioneer in this space, Vanguard’s branded mutual funds are famous in the investment community. In fact, they’re often considered the gold standard.
There are currently more than 140 mutual funds bearing the Vanguard name. Along with the world’s oldest index mutual fund — the Vanguard 500 — there are funds that cover bonds, stocks, emerging markets and more. All of these are free of transaction fees.
In addition, the company offers more than 3,000 non-Vanguard mutual funds with no transaction fees as long as you trade online. Another 6,000 funds bear a modest $20-per-trade fee.
Note that Vanguard funds do have a minimum: $3,000 for non-retirement accounts and $1,000 for IRAs. And keep in mind that Vanguard still charges commissions on stock, ETF, and options trades.
6. J.P. Morgan Self-Directed Investing
It’s impossible to have a list of the best brokers for mutual funds without mentioning J.P Morgan Self-Directed Investing.
This online broker offers completely commission-free trading for mutual funds, stocks, and ETFs. It offers over 3,000 mutual funds, and there isn’t a separate list of mutual funds that charge fees like many other brokers have. There isn’t a minimum account balance requirement either, and you can even get up to $625 for opening and funding a new account.
You can’t invest in fractional shares or cryptocurrency. But for fee-free mutual fund investing, J.P. Morgan is worth considering. And it also has a robo-advisor offering if you want a helping hand with your investments.
7. Ally Invest
Ally Invest is the brokerage arm of Ally Financial, one of the leading financial companies in the United States. The Ally family also includes Ally Bank, one of our highest-ranked online banks. This makes Ally a great one-stop-shop for your financial needs.Ally Invest offers extremely low commissions on mutual funds. You can buy and sell no-load funds for only $9.95 per trade. Ally currently offers more than 12,000 mutual funds, which is more selection than many online brokers.
In addition, Ally Invest recently eliminated commissions on stock, exchange-traded fund (ETF), and options trades. So if you decide you want to invest beyond mutual funds, this is an excellent option.
Just note the lack of no-transaction-fee mutual funds is a downside if you regularly invest in mutual funds. Ally Invest excels for selection, but it’s not the best broker for mutual funds if you’re dollar cost averaging.