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Investing in Exchange-Traded Funds (ETFs) offers a cost-effective and diversified approach to building a robust investment portfolio.
Selecting the right brokerage platform is crucial to maximize benefits such as low fees, a wide range of ETF options, and user-friendly tools.
Best Brokerage Platforms to Buy ETFs
Here are some top brokerage platforms renowned for their ETF offerings:
Broker | Fees | Our Rating |
|---|---|---|
Fidelity Investments | 0% – 1.04%
Fidelity Go® Robo advisor: $0: under $25,000, 0.35%/yr: $25,000 and above
Fidelity® Wealth Management dedicated advisor: 0.50%–1.50%
Fidelity Private Wealth Management® advisor-led team: 0.20%–1.04%
|
(4.5/5) |
Charles Schwab | Up to 0.80%
$0 online commission on U.S. listed stocks, mutual funds and ETFs, options: $0.65 per-contract, Schwab Intelligent Portfolio – 0%, Schwab Intelligent Portfolios Premium – One-time planning fee: $300 + Monthly advisory fee: $30, Schwab Wealth Advisory: up to 0.80% |
(4.5/5) |
Vanguard | Up to 0.30%
$0 online commission on U.S. listed stocks, mutual funds and ETFs, options: $0.65 per-contract, Vanguard Digital Advisor – 0.015%, Vanguard Personal Advisor: 0.03%, Vanguard Personal Advisor Select: up to 0.03%, Vanguard Wealth Management: up to 0.03% |
(4.5/5) |
E*TRADE | 0% – 0.35%
0% on stocks and ETFs in self directed brokrage, 0.35% for Core Portfolio Robo Advisor
|
(4.3/5) |
Interactive Brokers | 0% – 0.75%
$0 online commission on U.S. listed stocks and ETFs, Options: $0.15 – $0.65 per-contract, Futures: $0.25 – $0.85 per-contract. For Interactive Advisors: asset-based management fees of 0.10% to 0.75% |
(4.5/5) |
Merrill Edge | 0.45% – 0.85%
0.45% for Merrill Robo Advisor (Guided Investing), 0.85% for Investing With An Advisor |
(4.3/5) |
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Fidelity Investments
Fidelity stands out for its extensive selection of commission-free ETFs and robust research tools.
Investors benefit from a user-friendly platform that caters to both beginners and seasoned traders.
For example, an investor seeking to build a diversified portfolio can utilize Fidelity's comprehensive screeners to identify ETFs that align with their investment goals.
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Charles Schwab
Charles Schwab offers a broad range of ETFs with no trading commissions, complemented by intuitive platforms and educational resources.
An individual new to ETF investing might find Schwab's ETF Select List helpful in narrowing down choices based on performance and fees.
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Vanguard
Known for its low-cost index funds, Vanguard offers a wide range of proprietary ETFs with minimal expense ratios.
A long-term investor focusing on retirement savings could leverage Vanguard's target-date ETF options to simplify their investment strategy.
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E*TRADE
E*TRADE offers a diverse selection of commission-free ETFs and advanced trading tools.
Active traders might appreciate the platform's real-time data and analytical features to inform their ETF trading decisions.
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Interactive Brokers
Interactive Brokers is favored for its low-cost trading and access to global markets.
An investor interested in international ETFs can benefit from Interactive Brokers' extensive market reach and competitive pricing.
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Merrill Edge
Merrill Edge integrates seamlessly with Bank of America accounts, offering a variety of ETFs and robust research tools.
A Bank of America customer might find the convenience of managing banking and investments under one roof advantageous.
Top Online Investing Apps to Buy ETFs
Investing in Exchange-Traded Funds (ETFs) has become increasingly accessible with the advent of user-friendly online investing apps.
Here are some top investing apps renowned for their ETF offerings:
Broker | Fees | Our Rating |
|---|---|---|
Robinhood | $0 – $6.99
$0 for basic account, $6.99 for Robinhood Gold |
(4.4/5) |
Webull | $0
May be charge specific fees for trading such as stock options, futures, transfers etc
|
(4.1/5) |
M1 Finance | $3
Can be waived if you have an active M1 loan or your assets are over $10,000
|
(4.1/5) |
SoFi Invest | $0 |
(4.5/5) |
Acorns | $3 – $12
$3 for Bronze, $6 for Silver and $12 for Gold
|
(4.2/5) |
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Robinhood
Robinhood revolutionized investing by offering commission-free trades on stocks and ETFs. Its straightforward interface appeals to beginners looking to invest small amounts.
For instance, a new investor can start with as little as $1, utilizing fractional shares to gain exposure to various ETFs.
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Webull
Webull offers commission-free trading for stocks and ETFs, coupled with advanced charting tools. It's suitable for investors who seek a more analytical approach.
For example, a trader interested in technical analysis can utilize Webull's extensive charting features to inform their ETF selections.
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SoFi Invest
SoFi offers commission-free ETF trading and is especially appealing to newer investors with its clean interface and educational support.
It also features curated investment portfolios and automated investing for those who want hands-off exposure to ETFs.
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Acorns
Acorns simplifies ETF investing by automatically rounding up your purchases and investing the spare change into diversified ETF portfolios.
It’s perfect for passive investors or those just getting started. A college student, for instance, can passively build an ETF portfolio without actively managing trades.
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M1 Finance
M1 Finance combines automated investing with customization, allowing users to create “pies” composed of various ETFs and stocks.
A user could set up a pie with a mix of ETFs representing different sectors, and M1 Finance will automatically manage the allocations.
International ETFs: Where to Buy Foreign Market ETFs
Here are some top brokerage platforms that offer access to international ETFs:
- Interactive Brokers: Interactive Brokers provides access to over 90 market centers across 33 countries, offering a vast selection of international ETFs.
- Charles Schwab: Charles Schwab offers international trading in 12 foreign markets, including Canada, the UK, and Japan. Investors can purchase foreign ETFs directly or access U.S.-listed ETFs that focus on international markets.
- TradeStation: TradeStation, through its Global account powered by Interactive Brokers, offers access to 34 countries, including European and Asia-Pacific markets.
- Fidelity Investments: Fidelity provides access to 25 international markets, allowing investors to trade foreign ETFs and stocks. Its robust research tools assist in evaluating international investment opportunities.
How to Buy ETFs Directly from Vanguard and iShares
Purchasing ETFs from major providers like Vanguard and BlackRock's iShares is straightforward through brokerage platforms. These ETFs are listed on major stock exchanges and can be bought and sold like individual stocks.
Vanguard: To invest in Vanguard ETFs, you can open an account with Vanguard Brokerage Services, which offers commission-free online trades for their ETFs.
BlackRock's iShares: iShares ETFs can be purchased through various brokerage accounts.
It's important to note that ETFs cannot be purchased directly from the issuers but are accessible via brokerage platforms that provide the necessary market access.
How to Choose the Best ETF Platform for Your Needs?
Selecting the most suitable ETF platform requires careful consideration of various factors to align with your investment goals and preferences.
- Access to International Markets: If your strategy includes investing in foreign markets, choose a platform that offers extensive international access.
- Commission and Fee Structure: Evaluate the cost per trade, account maintenance fees, and any hidden charges.
- User Interface and Experience: A user-friendly platform enhances your trading experience.
- Research and Analytical Tools: Robust research capabilities are vital for informed decision-making.
- Account Minimums and Investment Options: Consider platforms with low or no account minimums if you're starting with limited capital.
- Customer Service and Support: Reliable customer support is crucial, especially when dealing with international investments.
- Educational Resources: Platforms offering educational materials can help you understand ETF investing better.
FAQ
Yes, many brokerages allow you to purchase ETFs within tax-advantaged accounts like IRAs. It's a popular way to build a diversified retirement portfolio.
Absolutely. Most modern investing apps, including Robinhood, Fidelity, and Webull, support buying and selling ETFs directly from your phone.
Yes, ETFs are traded on stock exchanges, so you’ll need a brokerage account to purchase them. Fortunately, many platforms offer commission-free trades.
ETFs are ideal for beginners because they offer instant diversification and are often low-cost. Many platforms also provide educational tools to help new investors.
ETFs trade like stocks throughout the day, while mutual funds trade only once after the market closes. ETFs typically have lower fees and more flexibility.
Yes, you can invest in ETFs that target specific countries like Japan or Brazil, or broader regions like Asia-Pacific or the Eurozone.
Many ETFs distribute dividends, especially those that include dividend-paying stocks or bonds. These payments can be reinvested or received as cash.
Some platforms like M1 Finance and Fidelity allow you to schedule automatic ETF purchases, making it easier to stay consistent with your investing plan.
Use research tools and screeners offered by platforms like Fidelity or Schwab to compare ETFs by performance, fees, and holdings based on your goals.
