Investing in index funds is a smart way to build wealth through diversification and low costs.
We’ve compiled a list of the best brokerage accounts for index investing, highlighting their features, fees and the unique benefits they offer to help you make an informed decision and maximize your investment potential.
Choosing the right brokerage account can significantly enhance your investment experience and returns.
So here are our picks for the best brokerage accounts for index funds.
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Best brokerage accounts for index funds
The following are our top picks of the best brokerage accounts for index funds, each highlighted for certain unique strengths.
While we’ve categorized each broker based on a specific standout feature, many excel in multiple areas. For example, while Charles Schwab is noted as one of the best for teens, it also serves as an excellent option for beginners due to its user-friendly platform and comprehensive educational resources.
15+ online brokers reviewed and rated by our team of experts
Evaluated under our unbiased rating system covering eight categories
20+ years of combined experience covering financial topics
We're big on editorial independence. That means our content, reviews and ratings are fair, accurate and trustworthy. We don't let advertisers or partners sway our opinions. Our financial experts put in the hard work, spending hours researching and analyzing hundreds of products based on data-driven methodologies to find the best accounts and providers for you. Explore our editorial guidelines to see how we work.
Robinhood simplifies investing with its innovative, beginner-friendly mobile app featuring an intuitive design and agile interface.
Trade commission-free index funds with as little as $1, enjoy 24/5 market access and benefit from an IRA that pays up to 3% in matching contributions. Additionally, earn 4.5% APY on your uninvested cash with Robinhood Gold.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Get a free stock
Robinhood simplifies investing with its innovative, beginner-friendly mobile app featuring an intuitive design and agile interface.
Trade commission-free index funds with as little as $1, enjoy 24/5 market access and benefit from an IRA that pays up to 3% in matching contributions. Additionally, earn 4.5% APY on your uninvested cash with Robinhood Gold.
Pros
Commission-free index ETFs
24/5 market
Intuitive trading platforms
Earn 3% in IRA matching contributions with Robinhood Gold
Earn 4.5% APY on uninvested cash with Robinhood Gold
Cons
No robo-advisor
No index mutual funds
Limited advanced tools unless you upgrade to Robinhood Gold
M1 Finance, LLC does not charge commission, trading, or management fees for self-directed brokerage accounts. You may still be charged other fees such as M1’s platform fee, regulatory fees, account closure fees, or ADR fees. For a complete list of fees M1 may charge visit M1 Fee Schedule. M1 is not a bank. M1 Spend is a wholly-owned operating subsidiary of M1 Holdings Inc.. M1 High –Yield Savings Accounts are furnished by B2 Bank, NA, Member FDIC. Obtaining stated APY (annual percentage yield) with the M1 High-Yield Savings Account does not require a minimum account balance. Stated APY is accrued on account balance. APY is solely determined by M1 Spend LLC and its partner banks, and will include account fees that will reduce earnings. Rates are subject to change without notice. M1 High-Yield Savings Account is a separate offering from, and not linked to, the M1 High-Yield Cash Account offered by M1 Finance, LLC. M1 is not a bank.
SoFi Invest offers one of the most user-friendly trading experiences among the brokers we review, providing easy market access with a robo-advisor option for automated investing.
Trade no-fee commission SoFi exchange-traded funds (ETFs) and third-party index funds with as little as $5. Additionally, SoFi is one of the few brokers in the industry to provide complimentary access to certified financial planners, a service that can cost several hundred dollars per session with other providers.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Get up to $1,000 in stock
SoFi Invest offers one of the most user-friendly trading experiences among the brokers we review, providing easy market access with a robo-advisor option for automated investing.
Trade no-fee commission SoFi exchange-traded funds (ETFs) and third-party index funds with as little as $5. Additionally, SoFi is one of the few brokers in the industry to provide complimentary access to certified financial planners, a service that can cost several hundred dollars per session with other providers.
Pros
No-fee commission index ETFs
1% in matching IRA contributions
Complimentary access to SoFi's certified financial planners
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.
Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).
There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options
Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser.
Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information
Probability of Member receiving $1,000 is a probability of 0.028%
Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.
For full promotion terms please visit: https://www.sofi.com/acatoffer. SoFi does not accept cryptocurrencies and has limitations on some mutual funds and OTC stocks. Brokerage and Active Investing Products offered by SoFi Securities, LLC, Member FINRA/SIPC.
Robo Advisor: Automated investing is offered through SoFi Wealth LLC, an SEC-registered investment adviser. 0.25% fee is based on your account value. The wrap program fee may cost more or less than purchasing brokerage, custodial, and recordkeeping services separately.
Moomoo offers advanced, customizable charting and free access to professional-grade tools, such as Morningstar ratings, comprehensive fund information, data indicators, real-time Level 2 market data and short sale analysis.
Track market capital flow to optimize transaction timing, view position cost distribution and other technical indicators and use Moomoo's Sentiment Indicator for a quick overview of the overall status of all technical indicators.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Get up to 15 free stocks
Moomoo offers advanced, customizable charting and free access to professional-grade tools, such as Morningstar ratings, comprehensive fund information, data indicators, real-time Level 2 market data and short sale analysis.
Track market capital flow to optimize transaction timing, view position cost distribution and other technical indicators and use Moomoo's Sentiment Indicator for a quick overview of the overall status of all technical indicators.
Pros
Commission-free index ETFs
Advanced trading tools and features on an intuitive trading platform
Earn up to 40 fractional shares and an extra 2% APY for 30 days when you open an account and make an initial deposit of the qualified amount. T&C apply.
Webull offers a user-friendly trading platform featuring advanced charts, order flow distribution, short interest data, institutional ownership and holdings data and comprehensive fund information.
Trade commission-free index ETFs with as little as $5, or automate your index investing with Webull's robo-advisor, Smart Advisor.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Earn up to 40 fractional shares and an extra 2% APY for 30 days
Webull offers a user-friendly trading platform featuring advanced charts, order flow distribution, short interest data, institutional ownership and holdings data and comprehensive fund information.
Trade commission-free index ETFs with as little as $5, or automate your index investing with Webull's robo-advisor, Smart Advisor.
Pros
Commission-free index ETFs
Robo-advisor
Advanced trading tools and features on an intuitive trading platform
Earn 5% APY on your uninvested cash
24/7 customer support
Cons
No index mutual funds
$2.99 per month for Level 2 data access
Available asset types
Stocks, Options, ETFs, Cryptocurrency
Account types
Brokerage, IRA
Annual fee
$0 per month
Minimum deposit
$0
Signup bonus
Earn up to 40 fractional shares and an extra 2% APY for 30 days
Cash sweep APY
4.25%
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Earn up to 40 fractional shares and an extra 2% APY for 30 days
Interactive Brokers offers a variety of commission-free index ETFs and mutual funds, along with several feature-rich trading platforms and UGMA/UTMA accounts for minors.
Trade fractional shares of index funds with as little as $1, or choose an automated portfolio of actively managed funds with Interactive Advisors.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
N/A
Interactive Brokers offers a variety of commission-free index ETFs and mutual funds, along with several feature-rich trading platforms and UGMA/UTMA accounts for minors.
Trade fractional shares of index funds with as little as $1, or choose an automated portfolio of actively managed funds with Interactive Advisors.
Pros
Commission-free index ETFs and mutual funds
UGMA/UTMA accounts for minors
Several trading platforms for different experience levels
Minors and parents with children looking to start investing will find E*TRADE an excellent choice. As a pioneer of online trading, E*TRADE offers a diverse lineup of account types, including custodial brokerage accounts, IRAs for minors and Coverdell Education Savings Accounts.
Trade commission-free index ETFs and mutual funds, with 24/5 trading on select ETFs. Additionally, E*TRADE's robo-advisor, Core Portfolios, provides a straightforward, automated portfolio management option.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Get up to $1,000 terms apply
Minors and parents with children looking to start investing will find E*TRADE an excellent choice. As a pioneer of online trading, E*TRADE offers a diverse lineup of account types, including custodial brokerage accounts, IRAs for minors and Coverdell Education Savings Accounts.
Trade commission-free index ETFs and mutual funds, with 24/5 trading on select ETFs. Additionally, E*TRADE's robo-advisor, Core Portfolios, provides a straightforward, automated portfolio management option.
Pros
Custodial brokerage, custodial IRAs and Coverdell ESAs
Schwab provides access to over 3,000 index mutual funds and ETFs, along with trading in 33 of its proprietary index mutual funds and ETFs that span US equity, international equity and US fixed-income markets. All index ETFs are commission-free.
Additionally, benefit from a robo-advisor, personalized financial advisory services and the renowned thinkorswim trading platform.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Get a $101 bonus
Schwab provides access to over 3,000 index mutual funds and ETFs, along with trading in 33 of its proprietary index mutual funds and ETFs that span US equity, international equity and US fixed-income markets. All index ETFs are commission-free.
Additionally, benefit from a robo-advisor, personalized financial advisory services and the renowned thinkorswim trading platform.
Pros
Commission-free index ETFs and select mutual funds
Trade 28 Fidelity index mutual funds, including equity, fixed income and hybrid options, along with 13 Fidelity Freedom Index Funds and 21 Fidelity index ETFs. Additionally, access over 370 third-party index mutual funds and more than 1,840 third-party index ETFs.
Invest with as little as $1, or automate your investments with Fidelity's robo-advisor.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
N/A
Trade 28 Fidelity index mutual funds, including equity, fixed income and hybrid options, along with 13 Fidelity Freedom Index Funds and 21 Fidelity index ETFs. Additionally, access over 370 third-party index mutual funds and more than 1,840 third-party index ETFs.
Invest with as little as $1, or automate your investments with Fidelity's robo-advisor.
Pros
Commission-free index ETFs and mutual funds
24/7 customer support
Brokerage accounts and IRAs
Cash sweep program with competitive yields
Robo-advisor
Cons
$25,000 minimum to access a Fidelity financial advisor
Trade a wide variety of commission-free Vanguard index mutual funds and ETFs, including options in stock, bond, balanced, international, ESG and target-date funds.
Trade index ETFs with as little as $1, and access both Vanguard's human and automated advisory services.
Stock trade fee
$0
Minimum deposit
$50,000
Signup bonus
N/A
Trade a wide variety of commission-free Vanguard index mutual funds and ETFs, including options in stock, bond, balanced, international, ESG and target-date funds.
Trade index ETFs with as little as $1, and access both Vanguard's human and automated advisory services.
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Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.
Methodology: How we choose the best brokerage account for index funds
Finder’s investments experts reviewed 18 brokers to identify the best brokerage accounts for investing in index funds.
Our analysis is based on 147 key metrics collected directly from brokers, evaluating each platform across eight categories, including investment options, trading costs, account types and more.
Since most brokers offer access to index funds, we highlight the unique characteristics that make these brokers stand out for index fund investing.
We regularly update our best picks as products evolve, ensuring our recommendations reflect the most competitive options available in the market.
How do I open a brokerage account?
Complete the account opening process online in minutes with most investing platforms available today.
Choose an investing platform and complete a brief application by providing personal information such as your name, address, date of birth and Social Security number.
Completed applications are typically approved instantly, though the broker may take a couple of days to verify your information.
Then, connect a bank account to fund your account.
What to look for when choosing the best brokerage account
Finder’s picks for the best brokerage accounts provide a starting point for finding the right broker for your investing style and goals.
Consider the following factors when comparing your options:
Fees. From trading fees to miscellaneous fees, it’s important to understand the cost of trading and investing. Consider which investment products you plan to trade and the fees that apply, but also be mindful of any back-end fees, such as inactivity or transfer fees, that can also eat into your profit.
Tradable assets. Not every broker offers the same investment options. Stocks, options and ETFs are standard, but some brokers offer mutual funds, bonds, futures, forex, crypto and more. If you’re looking for the best broker for S&P 500 investing and other index funds, all brokers on our list offer access to these options.
Account types. What other account types, in addition to a brokerage account, does the broker offer? If you’re interested in saving for retirement, compare brokers offering IRAs. Consider your other investment needs and how important it is to maintain all your accounts under one roof.
Research and data tools. In-house research and tools simplify investing, as you don’t have to venture elsewhere to make an informed decision about an investment. If you’re a passive index investor, extensive research and analysis tools may not matter much. Active stock pickers may feel otherwise.
Mobile app reviews. Mobile trading is more popular than ever, allowing you to trade and invest from anywhere. Check out what current or previous customers say about the platform’s functionality.
Signup bonus. While it may not make sense to choose a broker solely based on whether it offers a signup bonus, a new customer incentive such as a free stock may be enough to help you choose one over another if all else is equal.
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What type of account do you need to invest in index funds?
Invest in index funds through various account types, including taxable brokerage accounts, IRAs and workplace retirement plans such as 401(k)s. The specific index funds available for trading depend on each broker’s offerings.
What are the downsides of investing in index funds?
Investing in index funds has some downsides, including limited flexibility, as they passively track a market index and cannot capitalize on market opportunities. They also offer no protection against market downturns since they reflect the overall market performance. Additionally, index funds may include underperforming stocks.
Matt Miczulski is an investments editor at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions.
Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University. See full bio
Matt's expertise
Matt has written 207 Finder guides across topics including:
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