Best Brokers for Mutual Funds of 2026
Our investing team spent hours researching the best brokers for mutual fund investing based on fund choices, cost, services and investment guidance. Here are the top options.The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
The best broker for mutual funds when it comes to breadth of available options is Interactive Brokers IBKR Lite, which offers more than 21,000 funds that carry no transaction fees. But there are several other contenders that earn high marks.
- CompanyNerdWallet ratingFeesAccount minimumPromotionLearn more4.3/5
$0
per online trade$0
Up to $1,000
cash bonus when you open and fund a J.P. Morgan Self-Directed Investing account.Learn moreon J.P. Morgan's websiteLearn moreon J.P. Morgan's websiteLearn moreon J.P. Morgan's websiteBest App for Investing5.0/5$0
per trade for online U.S. stocks and ETFs$0
None
no promotion available at this timeLearn moreon Fidelity's websiteLearn moreon Fidelity's websiteLearn moreon Fidelity's website4.5/5$0
per trade. Other fees apply.$0
Get up to $1,500
when you open and fund an E*TRADE brokerage account. Terms apply.Learn moreon E*TRADE's websiteLearn moreon E*TRADE's websiteLearn moreon E*TRADE's website4.2/5$0
per trade for online stocks, ETFs and Vanguard Funds.$0
None
no promotion available at this timeLearn moreon Vanguard's websiteLearn moreon Vanguard's websiteLearn moreon Vanguard's website4.8/5$0
per online equity trade$0
Up to $500
when you make a qualifying net depositLearn moreon Charles Schwab's websiteLearn moreon Charles Schwab's websiteLearn moreon Charles Schwab's website
Interactive Brokers
Interactive Brokers offers 21,000 no-transaction-fee mutual funds, the largest range of all the brokers we review. There are around 30,000 more mutual funds that do have transaction fees, which you'll pay the lesser of $14.95 or 3% of the trade value to buy.
The broker's Mutual Fund Inventory Search Tool allows you to filter funds by family, type, minimum investment and more. And one plus: Interactive Brokers' mutual funds aren't only available to U.S. investors — international investors can trade them, too.
2026 Best-of Award winner: Interactive Brokers is NerdWallet's pick for the best online broker for advanced traders. Don't let the name fool you: IBKR Lite offers commission-free stock trading (including international trade capabilities), more than 21,000 mutual funds, and a well-featured platform.
Charles Schwab
Schwab offers close to 7,800 no-transaction-fee mutual funds, making it our runner-up. For mutual funds that do have transaction fees, they cost $49.95 or $74.95 per buy.
The broker has a Mutual Fund OneSource Select List for investors to reference, which includes Schwab's top picks for mutual funds based on performance, risk and expenses. For beginner investors, this could be a good place to start your mutual fund research.
2026 Best-of Award winner: Charles Schwab is NerdWallet's pick for the best online broker for IRA investors. Charles Schwab has earned its strong reputation: The broker offers high-quality customer service, four free trading platforms, a wide selection of no-transaction-fee mutual funds and $0 commissions for stocks, ETFs and options.
SoFi
SoFi offers 6,800 no-transaction-fee mutual funds. Most other mutual funds come with a 0.20% fee, though certain ones have a cap of $20.
If you're not sure where to start when it comes to picking the right mutual funds for your portfolio, expert help is readily available through a SoFi Plus subscription. For just $10 per month, you can get unlimited access to a financial planner.
SoFi Active Investing's $0 trading commission, fractional shares and $0 account minimum are attractive to new investors. More advanced investors will appreciate the company's wide mutual fund selection and IPO access.
E*TRADE
E*TRADE offers more than 5,900 transaction-fee-free mutual funds. Similar to Schwab, E*TRADE has a Choice Mutual Funds List for investors to reference, a set of mutual funds selected by the firm based on a fund's track record, assets and more.
E*TRADE's Prebuilt Portfolios tool may also come in handy for beginner investors. Without even having to open an account, you can take a short quiz about your investment style and get matched with a sample portfolio of mutual funds.
E*TRADE from Morgan Stanley has long been one of the most popular online brokers. The company's $0 commissions and strong trading platforms appeal to active traders, while intermediate investors benefit from a large library of educational resources.
Firstrade
Firstrade offers more than 5,500 no-transaction-fee mutual funds. You can narrow down your mutual fund search with Firstrade's in-platform screener or use the company's AI-powered FirstradeGPT to analyze funds.
Investors who prefer to be more hands-off may be interested in Firstrade's Periodic Investment Program, which allows you to easily set up recurring investments to your mutual funds.
In addition to free stock and options trading, Firstrade charges no commission for mutual funds, a deal no other broker matches. Options traders will appreciate that the broker charges no contract fee, also a rarity among brokers.
Ally
Ally has more than 5,400 mutual funds that come without transaction fees. Its mutual fund research tools are similar to those of other brokers — after you make an account, you get access to a screener that can help you narrow down your list of funds.
So what makes Ally stand out? No matter what you choose to invest in, Ally may be a clear winner for existing Ally Bank customers because of its mobile app integration. You can see all your finances, from your checking account to your savings to your investments, all in the same app.
Ally Invest’s lack of fees, portfolio management feature and cash management options make it a good choice for beginner investors.
Vanguard
It's no surprise that the king of low-cost investing offers more than 3,600 no-transaction-fee mutual funds. The transaction fees on Vanguard's other mutual funds will run you $8 to $20.
While transaction fees matter when choosing a broker for mutual funds, so do expense ratios — and Vanguard is an industry leader when it comes to low expense ratios. In fact, the average expense ratio for all Vanguard ETFs and mutual funds is 84% lower than the industry average.
Vanguard is the king of low-cost investing, making it ideal for buy-and-hold and retirement investors. It offers a top-notch selection of proprietary, low-cost mutual funds, including many ESG options. Despite its $0 online stock trade commission, active traders will find the broker falls short due to the lack of a strong trading platform.
Fidelity
Fidelity offers more than 3,200 no-transaction-fee mutual funds. For mutual funds that do have transaction fees, most will cost you $49.95.
While Fidelity has top-notch research tools for funds and helpful model portfolios, it stands out most for its no-cost passively managed mutual funds. Free index funds aren't something you'll find at most other brokers.
2026 Best-of Award winner: Fidelity is NerdWallet's pick for the best online broker for beginning investors and the best app for investing. Fidelity is one of the largest and most well-established brokerages, and it shows. Fidelity charges no trading commissions, offers an extensive set of no-fee, no-minimum index funds. It also stands out for its top-notch research tools, a renowned trading platform and very strong customer service.
J.P. Morgan
J.P. Morgan has roughly 3,000 mutual funds that are transaction-fee-free. Like other brokers, J.P. Morgan offers a screener that lets you sort through mutual funds to find those that fit your criteria.
The broker may be a top choice for existing Chase customers. Similar to Ally, you can research, trade and keep up with your investments all within the same app you use to bank.
J.P. Morgan Self-Directed Investing is a clear-cut investment platform that is great for beginners looking to learn how to buy and sell investments. More advanced investors, however, may find it lacking in terms of available assets, tools and research. INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Frequently asked questions
Is there a minimum to start investing in mutual funds?
You’ll generally face two minimums: A brokerage account minimum, which typically falls between $0 and $2,500, and the mutual fund minimum, which may be $1,000 or more. These minimums are combined — if the broker allows you to fund an account with $1,000, you can then invest that money in a mutual fund with a minimum of $1,000. As referenced above, many brokers now offer mutual funds with no or low minimums.
If your broker doesn't, you might consider exchange-traded funds, which are a type of passive mutual fund you can buy for a share price, much like an individual stock. That often means a lower barrier to entry. (Compare mutual funds vs. ETFs.)
What other costs are associated with mutual funds?
There are three common expenses you might see when investing in mutual funds:
1. Transaction fees: Charged on the purchase or sale of the fund — and in some cases, on both. Select a broker with a long list of no-transaction-fee mutual funds — like many of the ones we’ve recommended above — to avoid this cost.
2. Early redemption fees: Charged by a broker for selling out of a fund in the first 60 to 90 days. Aim to hold your mutual funds as a long-term investment.
3. Expense ratios: This charge comes from the fund itself. It’s an annual fee that is often higher on actively managed funds than passively managed funds. Expense ratios are expressed as a percentage of your investment: A fund with a 1% expense ratio will cost $10 a year for every $1,000 you invest. You can’t avoid expense ratios, but you can steer your money toward low-cost funds. Familiarizing yourself with the average mutual fund expense ratios will help you recognize if you’re paying too much.
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- 1.Vangaurd. See the difference low-cost mutual funds can make. Accessed May 5, 2026.
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).
For more details about the categories considered when rating brokers and our process, read our full methodology.