Top Brokerages for Exchange-Traded Funds in 2024
Best Online Brokers for ETFs
Exchange-traded funds (ETFs) have seen a remarkable 22.7% annual growth over the past decade. For investors looking to explore the world of ETFs, there are reputable brokerages that offer a wide range of account types, research tools, analysis, curated lists, and screeners to support your investment journey. Whether you are a novice or a seasoned ETF investor, finding the right brokerage can make all the difference.
Best Overall: Fidelity
Our research has revealed that Fidelity stands out as the best choice for ETF traders and investors. With a vast selection of over 2,500 ETFs, extensive screening metrics, advanced research capabilities, and unique features like the ETF Portfolio Builder, Fidelity offers a comprehensive suite of services to cater to your ETF investing needs.
Best for ETF Research: Interactive Brokers
Interactive Brokers boasts a wide array of investment and research tools, making it a top choice for ETF research enthusiasts. With features tailored for both fundamental and technical investors, Interactive Brokers provides a global platform with diverse account and order options, including ETF investing.
Best for ETF Screeners: Charles Schwab
Charles Schwab offers an intuitive ETF screener with approximately 100 screening criteria, making it easier for investors to identify the best funds that align with their specific requirements. With commission-free trading and a user-friendly interface, Charles Schwab is a popular choice among ETF investors.
Best for Buy and Hold Investors: Vanguard
Vanguard caters to buy-and-hold investors seeking a diversified portfolio of Vanguard ETFs. With a range of strategy portfolios, including ESG and all-in-one options, Vanguard offers low-cost ETF solutions for long-term investors.
Best for Pre-Built ETF Portfolios: E*TRADE
E*TRADE stands out for its competitive ETF offerings and customizable pre-built portfolios, ideal for investors looking for risk-based solutions. With top-tier research tools and advanced features, E*TRADE provides a comprehensive platform for ETF investors.
Compare the Best Brokers for ETFs
The table below compares the top online brokers for ETFs:
- Best Overall: Fidelity
- Best for ETF Research: Interactive Brokers
- Best for ETF Screeners: Charles Schwab
- Best for Buy and Hold Investors: Vanguard
- Best for Pre-Built ETF Portfolios: E*TRADE
Frequently Asked Questions (FAQs)
What Is an ETF?
An exchange-traded fund (ETF) is a collection of investment securities that provides access to various market segments, offering diversification and convenience for investors.
What Is a Bitcoin ETF?
There are two types of Bitcoin ETFs: spot and futures. Spot ETFs provide direct exposure to Bitcoin, while futures ETFs speculate on the future price of Bitcoin using futures contracts.
Are ETFs Safe?
ETFs are generally considered low-risk investments due to their diversified nature, but factors like market volatility and liquidity can impact their performance.
Should You Buy Commission-Free ETFs?
Commission-free ETFs can be beneficial for investors, but it’s essential to consider other costs like the operating expense ratio to evaluate the overall value.
Do ETFs Pay Dividends?
Some ETFs pay dividends to shareholders based on the performance of the underlying assets. Dividends can be qualified or non-qualified, each with different tax implications.
How We Picked the Best Online Brokers and Trading Platforms
We performed an in-depth evaluation of 26 online brokerages based on ETF selection, account amenities, costs, and features. Our proprietary model rated companies across 11 major categories and 89 criteria, ensuring unbiased reviews for investors.
