Brokerage Accounts for Index Funds
Review
Updated
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Index funds can be a great way to gain exposure to the tremendous wealth building potential of the stock market without the risks of investing in individual stocks or the fees of actively managed mutual funds. While you can easily invest in index funds through virtually all online brokers and stock investing apps, there are some that could be a better fit for index fund investors than others.
Let's take a closer look at our favorite brokerage accounts for index funds, as well as some of the important things to keep in mind before you get started.
| Broker/Advisor | Best For | Commissions | Learn More | |
|---|---|---|---|---|
|
Featured Offer
Rating image, 4.5 out of 5 stars.
4.5/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
Automated investing |
Commission:
$0 for stocks, $0 for options contracts |
Learn More for SoFi Invest®
On SoFi Invest's Secure Website.
Special Offer
Get up to $1,000 in stock when you open & fund a new Active Invest account. Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions at https://www.sofi.com/invest/clawpromotion/rules. |
 2025 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
Low fees |
Commission:
Commission-free; other fees apply |
Learn More for E*TRADE from Morgan Stanley
On E*TRADE's Secure Website.
Special Offer
Open and fund a brokerage account and get up to $1,000. Terms apply. 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. Please read full terms and conditions on our website. |
2025 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
IRA match |
Commission:
$0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.0 out of 5 stars.
4.0/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
Investing small amounts |
Commission:
$3-$12 monthly |
Learn More for Acorns
On Acorns' Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.0 out of 5 stars.
4.0/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
$0 mutual fund commissions |
Commission:
$0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website.
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 7/22/2025. |
2025 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
Passive investing |
Commission:
$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million) |
Learn More for Vanguard
On Vanguard's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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.
= Best
= Excellent
= Good
= Fair = Poor |
Best For:
No account minimums |
Commission:
$0 stock and ETF trades |
As mentioned, all online brokers and stock trading apps allow you to buy and sell index funds, at least of the ETF variety. But there are some that are likely to be a better fit than others. Here are our top choices.
On E*TRADE's Secure Website.
2025 Award Winner
E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.
Commission-free; other fees apply
$0
Open and fund a brokerage account and get up to $1,000. Terms apply.
On E*TRADE's Secure Website.
Why E*TRADE from Morgan Stanley made the list: E*TRADE from Morgan Stanley was one of the first online brokers, and it is still one of the best. In addition to being a great place to trade index ETFs and mutual funds, E*TRADE from Morgan Stanley offers a ton of educational resources and investing tools that can help you not only build a portfolio, but learn a lot about investing while you're doing it.
There's an extensive branch network for those who might need help getting started, and there are many different account types available for you to start buying index funds.
On SoFi Invest's Secure Website.
This brokerage is a clear standout for its well-rated mobile app and also has unique investment offerings like IPOs, options, and fractional shares.
$0 for stocks, $0 for options contracts
$0
Get up to $1,000 in stock when you open & fund a new Active Invest account.
On SoFi Invest's Secure Website.
Why SoFi® made the list: SoFi® offers an all-in-one financial app, which includes a user-friendly investment platform. There's an automated investment (robo-advisor) platform that allocates your money to portfolios of index funds automatically, as well as a self-directed platform that makes it easy to buy index funds directly. (See disclosures.)
SoFi® recently added mutual funds to its platform, with over 6,000 available commission-free, making it one of the few app-based investment platforms to offer both index ETF and mutual fund investing.
On Robinhood's Secure Website.
2025 Award Winner
A top pick for beginners, Robinhood combines $0 commission trades, an easy-to-use app, and a rare retirement deposit match.
$0 for stocks, ETFs, and options
$0
On Robinhood's Secure Website.
Why Robinhood made the list: Robinhood pioneered zero-commission investing years ago, and while it no longer is the only broker to offer it, it is still one of the most user-friendly ways for beginners to start buying index funds.
Robinhood offers standard taxable and retirement accounts, and while its Robinhood Gold membership isn't free, if you're aggressively investing in an IRA, it can easily pay for itself with the bonuses you receive.
One drawback is that Robinhood doesn't (yet) offer mutual funds, but it is still a great all-around platform for index fund investing.
On Acorns' Secure Website.
Acorns is a top-tier robo-advisor ideal for hands-off investing. The bigger your account balance, the more competitive you'll find Acorns' fees. You may want to open an account for the simple fee structure or the variety of account options, including custodial accounts for kids. Join Acorns to quickly open a diversified portfolio that manages itself.
$3-$12 monthly
$0
On Acorns' Secure Website.
Why Acorns made the list: Acorns is a robo-advisor platform that automatically allocates investors' money into portfolios of low-cost ETF index funds. It can be a top choice if you're looking to put your investment strategy on autopilot.
Acorns has a simple pricing structure that only consists of a small monthly fee, and offers innovative features to help you grow your portfolio, such as the ability to round up your credit and debit card purchases to the nearest dollar and invest the difference.
On J.P. Morgan Self-Directed Investing's Secure Website.
A no-frills platform with $0 mutual fund fees, J.P. Morgan Self-Directed Investing offers easy trading, an optional robo-advisor, and seamless Chase integration.
$0 per trade
$0
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 7/22/2025.
On J.P. Morgan Self-Directed Investing's Secure Website.
Why J.P. Morgan made the list: Only a few brokers charge $0 commissions on all mutual funds, and J.P. Morgan Investing is on that list. It offers a variety of account types, and could be an especially good fit for current Chase banking and credit card customers.
The brokerage offers an easy-to-use app-based investment platform that makes it easy to get started with investing, even for those with little or no experience.
On Vanguard's Secure Website.
2025 Award Winner
Vanguard is one of the best brokerages for passive investors who want to buy low-cost index fund ETFs. It also offers thousands of no-transaction-fee mutual funds, and excellent zero-commission options for buying stocks online, with no account minimums for brokerage accounts. Vanguard tries to keep its costs and expense ratios low so investors (like you) can keep more of your returns.
$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million)
$0
On Vanguard's Secure Website.
Why Vanguard made the list: Vanguard invented the low-cost index fund decades ago, and it remains a great brokerage for index fund investors. The platform offers commission-free ETFs as well as its own index fund products. It's designed to make it as easy as possible for investors to build up their passive ETF holdings.
Ally Invest impresses with $0 commissions and no account minimums. It's a great choice for those looking for an intuitive platform from which to make cheap trades.
$0 stock and ETF trades
$0
Why Ally Invest made the list: Ally Invest is a solid pick for index fund investing, especially if you want to invest in both ETFs and mutual funds. Ally is one of the few brokers that doesn't just have a list of no-transaction-fee mutual funds -- it has $0 commissions on all mutual funds.
The platform also offers a robo-advisory service that can allow you to automate your index fund investing if you'd like to choose that route instead of (or in addition to) buying your own index fund investments.
Index funds can be a great way to invest, but they aren't right for everybody.
It's easy to get started with index funds.
The first step toward investing in index funds is to open an account with a brokerage. The firms listed in this article are a great place to start your search. Pay attention to the fee structures, investment platforms, account types, and more to find the best fit for you. Once you've decided, simply fill out the broker's application and make a deposit. Then you'll be ready to start investing.
The next step is to decide what index funds you want to buy. Should you stick to a basic, low-cost S&P 500 index fund, or do you want more of a specific or narrow focus? There are index funds that track the various sectors of the stock market, different types of stocks (growth, value, etc), and more. Check out this primer on index fund investing to help you narrow down your search.
Once you've made your deposit and know which index fund(s) you want to invest in, the final step is to buy them. Most brokers have easy-to-use order entry tools on their platform. Many will allow you to enter a dollar amount you want to invest, but if not, you'll need to figure out how many shares you want to buy, which can be done by dividing the amount you want to invest by the current share price of the index fund.
An index fund is an investment instrument that aims to match the long-term performance of a certain benchmark index. For example, an S&P 500 index fund would invest your money in such a way that it would replicate that index's performance over time. Index funds can come in the form of mutual funds or exchange-traded funds (ETFs).
Index funds can help you put your investments on autopilot. By definition, buying an index fund guarantees that you'll match the performance of a certain benchmark index (net of fees). And it can do this while allowing you to sleep soundly at night.
To sum it up, index fund investing can be a great way for anyone to get exposure to the stock market or other asset classes. And finding the right broker to do it can make the experience much more pleasant.
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 from Morgan Stanley, E*TRADE from Morgan Stanley, 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 Robo Investing, Stash, Stockpile, tastytrade, Titan, Tornado App, TradeStation, Tradier, Vanguard, Vanguard Digital Advisor®, Wealthfront, Webull, Zacks Trade.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
See disclosures: https://www.sofi.com/invest/
E*TRADE services are available just to U.S. residents.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee. See the Vanguard Brokerage Services commission and fee schedules for full details.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
