Best Brokers for ETF Investing
Every major U.S. broker now offers $0 ETF trades, so price is no longer the deciding factor. What separates them is fractional shares, research depth, and who they're built for.
Don't have time? Here's what you need to know:
- 1Every major U.S. broker has charged $0 commission on U.S.-listed ETF trades since late 2019, so price rarely decides the choice.
- 2Fractional shares matter most for small, regular contributions — Fidelity, Schwab, Robinhood, and M1 support them; Vanguard is limited.
- 3Fidelity is the strongest all-around pick; Vanguard suits index holders, Interactive Brokers fits global investors, M1 automates allocation.
- 4Choose on durable features — research, fractional shares, cash yield, account types — not on promotions or rates that change constantly.
Why $0 Commissions No Longer Decide the Question
In late 2019 the major U.S. brokers collectively dropped commissions on U.S.-listed stock and ETF trades to zero, and that pricing has held ever since. Fidelity, Schwab, Vanguard, Interactive Brokers, Robinhood, E*TRADE, and the rest all charge nothing to buy or sell an ETF online. That single change rewrote the comparison: the old question of "which broker is cheapest to trade" is essentially answered, and answered the same way everywhere.
So the real decision sits elsewhere. The features that now separate one broker from another are whether you can buy fractional shares, how deep the research and screening tools run, the quality of the mobile and desktop experience, what it costs to hold cash, and whether the platform fits the way you actually invest. A 22-year-old automating $50 a week has different needs than someone managing a seven-figure rollover IRA.
Tip: Don't pick a broker on commissions alone — they're $0 nearly everywhere. Weigh fractional shares, research tools, cash yields, and how the app fits your habits instead.
The Major Brokers at a Glance
Each of the large brokers has a durable identity that survives the constant churn of promotions and rate changes. Vanguard is the low-cost index pioneer with a famously clunky interface. Fidelity is the all-rounder with strong research and true fractional-share trading. Schwab is the full-service giant that absorbed TD Ameritrade and its thinkorswim platform. Interactive Brokers is the choice for global and international investors. Robinhood is the slick mobile-first app. M1 Finance automates investing through its "pie" system.
The table below summarizes the lasting strengths rather than this week's interest rate or sign-up bonus, which drift too quickly to be useful. Use it to narrow your shortlist, then read the deeper review of whichever two or three fit your situation.
| Broker | Best for | Fractional shares | Notable strength |
|---|---|---|---|
| Fidelity | All-around investors | Yes (down to $1) | Research + true fractional, no PFOF on equities |
| Vanguard | Long-term index holders | Limited | Lowest-cost in-house index funds |
| Schwab | Full-service + active | Yes (Stock Slices) | thinkorswim platform, broad lineup |
| Interactive Brokers | Global / international | Yes | Access to dozens of world exchanges, low margin |
| Robinhood | Simple mobile investing | Yes | Clean app, fast onboarding (uses PFOF) |
| M1 Finance | Hands-off automation | Yes | Automated "pie" portfolios + rebalancing |
The Features That Actually Matter Now
Fractional shares are the feature most worth checking. They let you put your whole contribution to work regardless of a fund's share price — if you have $100 and a share trades near $250, fractional trading buys 0.4 of a share instead of leaving cash idle. Fidelity, Schwab (via Stock Slices), Robinhood, M1, and SoFi all support fractional ETF or stock purchases. Vanguard's fractional support is limited, mostly to its own mutual funds rather than arbitrary ETFs.
Cash management is the quiet differentiator. Many brokers leave uninvested cash in a low-yield default sweep, while others automatically place it in a money-market fund that pays a competitive rate. Over a large balance that gap is real money. Research and screening tools matter more the more you tinker — Fidelity and Schwab lead here, while Robinhood and M1 deliberately keep things minimal. Finally, account types count: confirm your broker supports the wrappers you need, such as a Roth IRA, traditional IRA, or taxable brokerage account.
- Fractional shares — invest your full contribution, not just whole-share amounts.
- Cash sweep yield — whether idle cash earns a competitive money-market rate or near-zero.
- Research and screeners — depth ranges from Fidelity/Schwab (deep) to Robinhood (minimal).
- Account types — make sure IRAs, Roth IRAs, and custodial accounts you need are offered.
- Payment for order flow — Robinhood uses it; Fidelity does not route equity orders for PFOF.
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Matching a Broker to How You Invest
If you want one account to do everything well, Fidelity is the safe default: true fractional shares, strong research, no payment for order flow on equity orders, and a competitive cash sweep. If your plan is to buy and hold low-cost index funds for decades and you don't mind a dated interface, Vanguard's in-house funds are hard to beat on cost. If you value powerful trading tools alongside long-term investing, Schwab's combination of breadth and the thinkorswim platform fits.
If you trade or hold international securities, Interactive Brokers offers access to dozens of exchanges worldwide and low margin rates that specialists value. If you want the simplest possible mobile experience and don't need deep research, Robinhood delivers it, with the caveat that it earns revenue through payment for order flow. And if you'd rather set a target allocation once and let software handle the buying and rebalancing, M1 Finance's automated pies are built for exactly that.
Important: A broker's headline cash-sweep rate and promotional bonuses change constantly. Choose on durable features — fractional shares, research, account types — not on a number that may be different by the time you open the account.
How to Make the Final Call
Start with the wrapper, not the broker. Decide whether you're funding a taxable account, a Roth IRA, or a traditional IRA, then confirm your shortlist supports it. Next, decide if you need fractional shares — if you're investing small, regular amounts, you almost certainly do. Then weigh how much you'll lean on research tools versus wanting a clean, simple app.
Most investors are well served by a single mainstream broker holding a handful of broad funds such as VTI, VOO, or VXUS. There's no prize for spreading accounts across platforms. If you're opening your first account, our guide to opening a brokerage account walks through the paperwork step by step.
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Frequently Asked Questions
Which broker is best for ETF investing?
There's no single winner, but Fidelity is the strongest all-around choice for most ETF investors: $0 commissions, true fractional shares down to $1, deep research, and no payment for order flow on equity orders. Vanguard suits pure index buy-and-hold investors, Schwab fits those who also want active-trading tools, and Interactive Brokers is best for global exposure.
Do all brokers really charge $0 to trade ETFs?
For online trades of U.S.-listed ETFs, yes — every major U.S. broker has charged $0 commission since the industry-wide change in late 2019. You may still pay a small bid-ask spread on the trade itself, and broker-assisted or phone trades can carry a fee, but the standard online ETF trade is free across Fidelity, Schwab, Vanguard, Robinhood, and others.
Does it matter which broker I choose if commissions are the same everywhere?
Yes, just for different reasons than before. With commissions equalized, the deciding factors are fractional-share availability, the yield on uninvested cash, research and screening tools, the quality of the app, and which account types are supported. These differences can matter more over decades than a one-time commission ever did.
Can I move my ETFs to a different broker later?
Usually yes, through an in-kind ACATS transfer that moves your existing shares to the new broker without selling them — which avoids triggering capital-gains tax in a taxable account. The new broker typically initiates the transfer and may reimburse any outgoing fee charged by your old broker. It's worth confirming your specific funds transfer in kind before you start.
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Alex Harrington
CFA Level II Candidate, Finance & Economics
Alex Harrington is an independent ETF researcher and personal finance writer with over 8 years of experience analyzing exchange-traded funds. A CFA Level II candidate with a background in economics, Alex has reviewed 800+ ETFs and helped thousands of beginners build their first investment portfolios through clear, jargon-free education.
This content is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.