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You may have seen headlines about the Dow Jones Industrial Average and S&P 500 reaching all-time highs recently, as well as some that are talking about the new bull market in 2024. The stock market can not only be an exciting place to put your money to work, but it can also be an excellent long-term wealth builder.
However, buying individual stocks isn't right for everyone. Fortunately, all major brokers offer commission-free ETF investing these days, so how do you choose the best fit for you? Read on for our top ETF brokers for 2024.
Robin Hartill, CFP®, is Motley Fool Money’s Head of Product Ratings and has worked for The Motley Fool since 2020. Her work has appeared in various national publications, including Yahoo! Finance, NerdWallet, Investopedia, CNN Underscored, MSNBC, USA Today, and CNET Money. She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column.
Broker/Advisor | Best For | Commissions | Learn More | |
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Rating image, 5.0 out of 5 stars.
5.0/5
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, 5.0 out of 5 stars.
5.0/5
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:
Fractional share ETF investing |
Commission:
$0 commission for online U.S. stock and ETF trades |
|
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:
Mobile app investing |
Commission:
$0 for stocks, ETFs, options, and cryptocurrencies |
Learn More for Robinhood
On Robinhood'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:
Managing your money under one roof |
Commission:
$0 for online stock and ETF trades |
|
2024 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:
Investing and banking in one |
Commission:
$0 stock and ETF trades |
|
2024 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:
Full-featured stock broker |
Commission:
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares. |
|
2024 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 costs |
Commission:
$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million) |
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.
There's no perfect answer here. The best ETF broker for you is one whose features best meet your needs.
For example, if all you want is the ability to occasionally buy and sell ETFs, a broker with the simplest and most user-friendly platform is probably a good fit. But other features to consider include:
In any case, it could be a smart idea to compare some of the best ETF brokers listed above to see which might be the best fit for you. If you're new to investing, check out our list of best stock brokers for beginners -- many support ETF trading.
Many full-featured stock brokers are on equal footing when it comes to ETF investing, including to offer $0 online commissions and access to popular ETFs. But where Fidelity outshines the rest is that it offers fractional share investing for ETFs for as little as $1.
$0 commission for online U.S. stock and ETF trades
$0
A fee-cutting champ for investors who want a user-friendly app to be able to buy and sell ETFs, but aren't worried too much about research or educational tools. Robinhood also offers fractional shares and cryptocurrencies.
$0 for stocks, ETFs, options, and cryptocurrencies
$0
On Robinhood's Secure Website.
Merrill Edge® Self-Directed is great for ETF investors who want to keep all of their finances in one place (it integrates seamlessly with Bank of America accounts). It's also great for investors who want in-person help, as many Bank of America branches have Merrill Edge advisors available.
$0 for online stock and ETF trades
$0
Offers excellent new account bonuses and no commissions for stocks and ETFs. It also has one of the lowest options commissions and among the highest yield savings accounts, under one roof.
$0 stock and ETF trades
$0
Offers one of the deepest ETF lineups, including its 25+ branded, low-cost ETFs that are great options for passive index investors. Charles Schwab also shines with one of the deepest feature sets in the market for an array of investing and banking needs.
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
$0
Vanguard is the pioneer of the low-cost index fund. While you can trade Vanguard's excellent ETFs without commissions other places, a Vanguard brokerage account also gives you commission-free access to its mutual fund family that can't be found elsewhere.
$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million)
$0
Best ETF broker for investors who: Want an easy-to-use platform to start buying and selling ETFs.
Robinhood pioneered the zero-commission stock trading business, and is still the low-fee leader. It provides an extremely user-friendly way to get started with ETF investing, and has unique features that might appeal to certain investors, such as an IRA match.
Best ETF broker for investors who: Want a full-service brokerage experience with a solid trading platform.
Fidelity is one of the largest and oldest brokers in the U.S., and offers a ton of features such as educational tools, research reports, and more. It also offers a surprisingly user-friendly investing interface for an older and "traditional" brokerage firm, and can be a great all-around broker to start investing in ETFs.
Best ETF broker for investors who: Want to start buying ETFs in a user-friendly account, especially those who have Bank of America accounts.
Merrill Edge® Self-Directed is an investment platform owned and operated by Bank of America. It offers excellent educational tools, and can be especially great for existing Bank of America customers who want to invest in ETFs. After all, Merrill Edge® Self-Directed account balances count toward the bank's excellent Preferred Rewards program.
Best ETF broker for investors who: Want a simple online- and app-based platform to buy and sell ETFs and other investments.
Ally Invest is an excellent all-around investment platform that could be a solid choice for ETF investors. It has an easy-to-use trading interface, both in desktop and app-based forms, and offers both self-directed investing as well as automated investing (robo-advisor) that uses ETF-based portfolios.
Best ETF broker for investors who: Want a full-featured online broker with great customer service.
Charles Schwab pioneered the concept of a discount brokerage nearly 50 years ago, and today is one of the largest financial firms in the world. While its platform isn't as easy to use as some of its tech-focused rivals, it has tons of features that ETF investors may find appealing, such as research reports, educational tools, and several different trading platforms to choose from.
Best ETF broker for investors who: Want to invest in index funds, including both ETFs and mutual funds.
Vanguard's brokerage platform lags behind some of its rivals in several key areas. If you want to buy fractional shares of ETFs, for example, it's probably not a good fit for you. However, it can be a fantastic choice if your goal is to invest in passive index funds or fixed-income investments.
In most cases, the process of opening a brokerage account, for ETF investing or otherwise, is rather quick and straightforward. Here are the general steps:
At the time of writing, there are more than 2,000 ETFs listed on major U.S. exchanges. So it would be far too time-consuming for you to research and compare all of them. With that in mind, here are some suggestions to help you understand how to invest in ETFs and narrow down your search.
ETFs fall into two main categories -- active and passive. An active ETF (also called "actively managed") is one that employs a fund manager or managers to construct a portfolio. A passive ETF is one that aims to track a benchmark index. For that reason, it's also referred to as an index fund.
The goal of index ETF investing is to match the performance of a certain benchmark. The goal of active ETF investing is to beat the performance of a benchmark. Active ETFs tend to have higher fees and don't always beat the market, but that's the goal.
Is growth your main priority? Maybe look at a Nasdaq index fund or another that invests in fast-growing companies. Are you more concerned with income? Maybe a high-paying ETF like the Vanguard High Dividend Yield ETF could be a good fit. Looking to preserve capital at all costs? A bond ETF like the iShares Core Total U.S. Bond Market ETF could work well. The right answer for you might be a combination.
You probably wouldn't buy a new TV without shopping around for the best deal, and the same logic applies to ETF investing. Why would you buy an S&P 500 index fund with a 0.40% expense ratio when there are some with 0.03% expense ratios that do the exact same thing?
If your broker allows it (several on this page do), you can buy fractional shares of ETFs. In other words, you can buy ETFs without needing to place your orders in whole numbers. If you want to buy 1.5 shares of an S&P 500 ETF, you can do so by using fractional shares.
There are a couple of good reasons why fractional share investing is a valuable feature in an ETF broker. First, it allows you to put all of your money to work. Let's say the ETF you want to buy costs $400 per share, and you have $700 in your account. Without fractional shares, the most you could afford is a single share.
Second, fractional shares allow beginners to build a portfolio without a ton of money to start. You can start buying ETFs with just a few dollars if your broker permits fractional share investing.
Few brokers have a minimum opening deposit these days, but not all allow fractional share investing. If yours does not allow fractional shares, you'll need at least enough money to cover the cost of one share of the ETF(s) you want to invest in. If you can trade fractional shares, you can get started with any amount of money (some brokers require increments of $1 or $5 for fractional shares).
Just like when you're investing in individual stocks, there is a wide spectrum of risk within the ETF world. There are ETFs that invest in short-term Treasury bonds that are about as safe as you can get. ETFs that track broad stock indices like the S&P 500 are likely to be volatile over time, but are certainly less risky than owning any one individual stock. And then there are ETFs with narrow focuses and high growth ambitions that can be rather risky investments.
Exchange-traded funds, or ETFs, combine some of the advantages of mutual fund investing with the convenience and simplicity of buying stocks. If you're looking for the best ETF brokers, commission-free trading is a must. You may also want fractional shares, in-person support, and strong research products.
Like mutual funds, ETFs pool investors' money to buy a diverse portfolio of stocks, bonds, or other investment assets. This can be a great hands-off investment approach and can also give you more diversification than simply loading your portfolio with individual stocks.
Unlike mutual funds, however, ETFs trade on major stock exchanges, and can be bought and sold easily with the push of a button. You can buy ETFs whenever the stock market is open, and the transaction will be instantaneous.
What's more, while mutual funds typically have a minimum initial investment (often $1,000 or more), the price of ETF admission is the cost of one share of the fund. If your broker allows for fractional share investing, you can invest in an ETF with as little as $1.
TIP
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At Motley Fool Money, 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
When looking for an ETF broker, it is important to find a broker with low costs, strong industry reputation, reliable track record, wide range of ETFs, and educational content and tools. Other things to consider are robust security standards, an easy-to-use trading platform, and a broker that best suits your trading needs.
ETFs are best for investors looking for low-cost investment vehicles and broad diversification. The typical ETF offers the same type of diversification that mutual funds offer at a fraction of the cost. ETFs are also best for beginner investors and those with limited amounts of capital. ETFs, unlike mutual funds, trade like a stock, giving investors greater liquidity compared to a mutual fund.
Investors can buy ETFs through an online brokerage account or a traditional brokerage firm. Investors may also be able to buy ETFs through their workplace retirement accounts, such as a 401(k) or 403(b).
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.
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.
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.
Options are a leveraged investment and are not suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest. Before buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options issued by OCC. A copy of this booklet is available at theocc.com. It may also be obtained from your broker, any exchange on which options are traded, or by contacting OCC at 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (888-678-4667 or 888-OPTIONS). The booklet contains information on options issued by OCC. It is intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. For further assistance, please call The Options Industry Council (OIC) helpline at 888-OPTIONS or visit optionseducation.org for more information. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.
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 HYPERLINK "https://investor.vanguard.com/investing/transaction-fees-commissions/etfs" 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
Fidelity disclaimers
The Fidelity Cash Management account is a brokerage account designed for investing, spending and cash management. Investing excludes options and margin trading. For a more traditional brokerage account, consider the Fidelity Account.
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
*Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See Fidelity.com/commissions for further details.
**Your account will automatically be reimbursed for all ATM fees charged by other institutions while using a Fidelity® Debit Card linked to your Fidelity Cash Management Account at any ATM displaying the Visa®, Plus®, or Star® logos. The reimbursement will be credited to the account the same day the ATM fee is debited from the account. Please note that there may be a foreign transaction fee of 1% that is not waived, which will be included in the amount charged to your account. The Fidelity® Debit Card is issued by PNC Bank, N.A., and the debit card program is administered by BNY Mellon Investment Servicing Trust Company. These entities are not affiliated with each other or with Fidelity Investments. Visa is a registered trademark of Visa International Service Association, and is used by PNC Bank pursuant to a license from Visa U.S.A. Inc.
***The Cash Balance in the Fidelity Cash Management Account is swept into an FDIC-Insured interest-bearing account at one or more program banks and, under certain circumstances, a Money Market mutual fund (the "Money Market Overflow"). The deposits swept into the program bank(s) are eligible for FDIC Insurance, subject to FDIC insurance coverage limits. Balances that are swept to the Money Market Overflow are not eligible for FDIC insurance but are eligible for SIPC coverage under SIPC rules. At a minimum, there are five banks available to accept these deposits, providing for up to $1,250,000 of FDIC insurance. If the number of available banks changes, or you elect not to use, and/or have existing assets at, one or more of the available banks, the actual amount could be higher or lower. All assets of the account holder at the depository institution will generally be counted toward the aggregate limit. For more information on FDIC insurance coverage, please visit www.FDIC.gov. Customers are responsible for monitoring their total assets at each of the Program Banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits at Program Banks are not covered by SIPC.
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.