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Standout Brokers For Index Funds

Index funds are a popular choice among investors for their instant diversification, returns that have proved more reliable than those of actively managed funds and rock-bottom fees that keep more of your cash invested.

If you don’t already have one, you’ll need to open a brokerage account to buy and trade index funds (or stocks, bonds or any other publicly traded investment). You don’t need to open an account with the provider that runs the fund — many providers offer a strong selection of index funds. Need help deciding? Check out the offers from our partners below.

Broker

Highlights

Commissions

Account Minimum

Current Offers

Start Investing

NerdWallet rating

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Large selection; low fees

Commissions

$0

per trade

Current Offers

$100 to $2,500

cash credit with a qualifying deposit or transfer

on E*TRADE's secure website

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NerdWallet rating

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Top research; two powerful trade platforms; educational content

Commissions

$0

per trade

Current Offers

Up to $600

cash credit with qualifying deposit

on TD Ameritrade's secure website

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See the possibilities

Predicting exactly how much money an investment will return would be magic. Unsurprisingly, no such crystal ball exists. You can, however, crunch the numbers with a compound interest calculator and guesstimate a range of different outcomes. As a starting point, the average annual return from the S&P 500 was just below 7% for the 10-year period 1996-2016.*

COMPOUND FREQUENCY

Estimated Future Balance: $14,290

PrincipalInterest
Check out those gains

With investing, time is your friend. The sooner you start, the longer you'll have to let compound interest do its thing.

Disclaimer: This is hypothetical and in no way predicts future performance. The average annual nominal return of the S&P 500 the last 30 and 10 years was calculated by the geometric mean with no adjustment for inflation. Investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. The hypothetical performance above does not take into account fees or sales charges.

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