Deciding on the best online platform for investing in mutual funds can be daunting, but it’s crucial for planning your financial goals, like retirement. Experts advise purchasing funds directly from the mutual fund company to minimize fees. Alternatively, opening a brokerage account with the fund company can also be cost-effective. For instance, buying Fidelity funds through Fidelity Investments or Vanguard funds through The Vanguard Group can streamline costs.

Comparing features and fees is essential. Evaluate the range of mutual funds available, brokerage charges, and any early redemption fees. Actively managed funds, where investment decisions are actively made to beat the market, typically carry higher expense ratios compared to passive index funds, which aim to mirror market performance.

Explore some of the top mutual fund brokers for 2024 to find the best match for your investment strategy.

Fidelity Investments disrupted the financial landscape in 2018 by introducing four zero-fee funds, marking it as the pioneer in offering mutual funds with no expense ratios in an ongoing price competition. These funds include the Fidelity Zero Total Market Index Fund, Fidelity Zero International Index Fund, Fidelity Zero Large Cap Index Fund, and Fidelity Zero Extended Market Index Fund. Additionally, all Fidelity funds are free of transaction fees if held for at least 60 days.

As a prominent figure in retirement services based in Boston, Fidelity also provides access to nearly 3,400 no-transaction-fee mutual funds. Their platform offers extensive research tools, screening capabilities, and renowned mutual funds like the iconic Magellan fund. Users can consolidate all financial accounts through their full-view feature, akin to budgeting apps like Mint, to manage their finances comprehensively.

Key Account Details:

  • Minimum amount to open an account: $0
  • Standard pricing: Free for Fidelity funds and other non-transaction-fee funds; $49.95 to buy and $0 to sell on non-Fidelity transaction-fee funds
  • Mutual fund highlight: Includes four zero-fee index funds and access to nearly 3,400 no-transaction-fee mutual funds

Charles Schwab revolutionized low-cost investing in the 1970s and continues to maintain competitive pricing today. At Schwab, investors benefit from a vast selection of mutual funds that do not charge sales commissions, encompassing over 4,300 no-load, no-transaction-fee options.

While Schwab excels in offering these fee-free funds, there is a substantial charge of up to $74.95 for transactions involving other funds. Like its competitors, Schwab does not impose a minimum requirement to open or begin investing in an account. The brokerage is renowned for its exceptional customer service, robust platform for trading, and extensive research resources, making it a reliable choice for investors.

Key Account Details:

  • Minimum amount to open an account: $0
  • Standard pricing: $0 on non-transaction-fee funds; up to $74.95 for other fund transactions
  • Mutual fund highlight: Over 4,300 no-load, no-transaction-fee mutual funds

E-Trade offers access to a wide range of over 6,000 no-load, no-transaction-fee mutual funds. In a move to enhance its wealth management services, E-Trade eliminated commissions and early redemption fees for all online mutual fund trades in late 2022. Acquired by Morgan Stanley in 2020, E-Trade became part of Morgan Stanley’s strategy to diversify beyond traditional investment banking.

Investors at E-Trade benefit from robust research tools designed to aid in investment decision-making. The platform includes a screener that allows users to quickly find funds based on criteria such as expense ratio, performance, yield, and other categories. Detailed information on each fund, including top holdings, costs, and annual performance, is readily accessible through the platform.

Key Account Details:

  • Minimum amount to open an account: $0
  • Standard pricing: $0
  • Mutual fund highlight: Over 6,000 no-load, no-transaction-fee mutual funds

Ally Invest provides access to a vast selection of over 17,000 mutual funds. In 2023, the brokerage eliminated its commission on no-load mutual funds, reducing it from $9.95 per trade to $0. This change positions Ally Invest as a top choice for investors seeking a brokerage focused on mutual funds.

As a digital-first financial institution without physical branches, Ally places significant emphasis on its online experience. Ally Invest benefits from the reputation of its sister brand, Ally Bank, which consistently earns accolades for its services. Ally is also recognized for its strong customer service track record.

Key Account Details:

  • Minimum amount to open an account: $0
  • Standard pricing: $0 on no-load funds
  • Mutual fund highlight: Commission on no-load mutual funds reduced to $0 from $9.95 in 2023

Founded in 1975, The Vanguard Group has built its reputation on providing low-cost index funds. Its founder, the late John C. Bogle, pioneered the launch of the first index fund for retail investors, now known as the Vanguard 500 Index Fund.

As a Vanguard client, you can invest in 160 Vanguard mutual funds without paying transaction fees. Additionally, the firm offers access to over 3,000 no-transaction-fee mutual funds from other providers. For non-Vanguard funds, trades typically cost between $8 and $20 per trade, although accounts holding more than $1 million in Vanguard funds receive their first 25 trades free of charge.

Despite its renown in index investing, Vanguard also offers actively managed funds.

Key Account Details:

  • Minimum amount to open a brokerage account: $0
  • Standard pricing: No fees for Vanguard funds and other no-transaction-fee funds; $8-$20 for others, depending on Vanguard assets
  • Mutual fund highlight: Well-regarded for its low-cost index funds

J.P. Morgan Self-Directed provides access to over 2,800 no-transaction-fee mutual funds, placing it among the top choices for mutual fund investors, whether new or experienced.

Self-directed investing clients benefit from a customizable screener for mutual funds and ETFs. This tool allows investors to screen funds based on technical indicators and Morningstar ratings, and convert these screens into watchlists. The screener is accessible both online and through the mobile app, enabling convenient fund research from anywhere.

In addition to a wide range of mutual funds, J.P. Morgan offers various investment types such as stocks, bonds, options, Treasuries, and brokered CDs. For existing Chase customers, the brokerage provides added convenience by integrating all Chase accounts into a single, user-friendly dashboard.

Key Account Details:

  • Minimum amount to open a brokerage account: $0
  • Standard pricing: $0
  • Mutual fund highlight: No fees on any of their more than 2,800 funds

Interactive Brokers, known for its advanced trading tools, also caters to regular investors with access to approximately 19,000 funds without transaction fees — a significant offering among its total of over 48,000 funds available. For other fee funds, trades can cost up to $14.95 each, and international fee funds incur a charge of 4.95 euros or equivalent.

Since expanding its mutual fund platform in 2020, Interactive Brokers has become the largest single destination for investors seeking no-load mutual funds. This expansive offering complements the broker’s capability to trade in 33 countries across various asset classes including stocks, bonds, and more, solidifying its reputation as a versatile and accessible brokerage.

Key Account Details:

  • Minimum amount to open a brokerage account: $0
  • Standard pricing: $0 for no-transaction-fee funds; otherwise, 3% of purchase value, up to $14.95
  • Mutual fund highlight: Approximately 19,000 no-transaction-fee mutual funds

Merrill Edge provides access to over 800 no-transaction-fee funds, offering investors a wide range of choices. You can easily navigate through these funds using Merrill’s screener or opt for Select Funds to build a portfolio tailored to your preferences, spanning different company sizes and styles. Each fund’s dedicated page on Merrill’s platform presents essential details such as its Morningstar rating, top holdings, and annualized performance, aiding in informed decision-making.

For added convenience, Merrill offers an automatic investing plan that operates similarly to setting up 401(k) deductions. Simply choose your investment amount and schedule, and your fund purchases will be automated without the need for manual intervention. You retain the flexibility to adjust your plan as needed.

Key Account Details:

  • Minimum amount to open a brokerage account: $0
  • Standard pricing: $0 for no-transaction-fee or load-waived funds; $19.95 for transaction-fee funds
  • Mutual fund highlight: Over 800 no-transaction-fee funds

Firstrade may not be as widely recognized as some of its counterparts, but it distinguishes itself by offering over 11,000 mutual funds without charging clients any commission fees, a rarity among brokers. Unlike others that impose fees on non-listed funds, Firstrade’s commission-free policy applies universally across its extensive selection, accommodating diverse investor needs.

Traders benefit from easy access to fund commentary and profiles on the Firstrade platform, providing insights into each fund’s performance history, asset allocation, manager details, and more. For seasoned investors, Firstrade offers an advanced screener to filter funds based on criteria such as minimum investment amounts, load types, risk categories, beta, and others.

It’s important to note that Firstrade’s no-commission structure does not exempt mutual fund managers from potentially charging sales commissions on load funds. However, Firstrade does offer a range of no-load funds without additional commission fees on its platform. Investors seeking such funds should verify the fund’s details to avoid transaction fees.

Key Account Details:

  • Minimum amount to open a brokerage account: $0
  • Standard pricing: $0 on all funds
  • Mutual fund highlight: No commissions on any of their more than 11,000 funds