Best ETF brokerage firms

ETFs trading commissions vary from broker to broker. It can range anywhere between $4.95 to $10, and even $19.95 for T.Rowe Price. Below we list brokerage firms which are offering the lowest pricing on ETFs as well as companies that are offering the best selection commission-free ETFs.

TD Ameritrade

4.5-star brokerage firm rating

While company's $6.95 ETF trading commissions remain a little bit higher compare to Optionshouse and TradeKing, TD Ameritrade offers a great selection of commission-free ETFs, which other two companies do not provide.

TD Ameritrade offers 101 commission-free ETFs from major ETF providers sush as iShares, Vanguard, VanEck, Pimco, PowerShares, SPDR, WisdomTree and others. The arrays of TD Ameritrade's ETFs with no cost are independently picked by Morningstar Associates as the best ETFs in many categories such as fixed income, equity, commodities and more.

The brokerage provides ETF Market Center, where investors can find ETF screeners and the technical analysis and objective fundamental research tools to select ETFs for their portfolio.

To discourage short-term trading, TD Ameritrade charges an early redemption fee of $19.99 on ETFs that are held fewer than 30 days. Holding the same ETF for 30 days or more is a simple way to avoid the fee.

TD Ameritrade is one of the best companies for those people who are new to investing. Its long history in the brokerage industry, combination of high-tech and professional-grade research and educational tools, and great selection of commission-free exchange-traded funds are what make TD Ameritrade a solid choice for any type of ETF investors, from beginner to experienced traders.

  • In 2015, Forbes ranked TD Ameritrade's selection of commission-free ETFs as the best for investors who are looking for the most liquid and lowest cost ETFs.
  • In 2014, ETF.com ranked TD Ameritrade as the Best Online Broker for ETF-Focused Investors.

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Open an account: Join TD Ameritrade. Trade free for 60 days + Get up to $600.

Charles Schwab

4-star brokerage firm rating

Minimum to open: $1,000 for a cash account.

Charles Schwab offers a widest selection of commission-free ETFs. It provides access to 200 no-cost commissions. Yet, it is important to notice, that the broker offers its own ETFs. There are only few funds among 200 from other providers like iShares for example. To entice even more investors and drive more assets into proprietary ETFs, Schwab does not even charge a short-term redemption fee. Well, it's still better than nothing, However, traders who are interested in the most liquid low-cost ETFs with options for diversification might consider to choose TD Ameritrade with its excellent collection of commission-free ETFs.

Charles Schwab is a solid brokerage firm, a good choice for long-term investing or retirement savings. However, Schwab's requirement is to deposit $1,000 for both, a brokerage and IRA accounts. The broker offers excellent customer service, great research and powerful trading tools. Its advanced trading platform is only available to active traders. Buy-and-hold investors can take advantage of free web-base platform, though.

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Open an account: Open an account with Charles Schwab

Lowest Cost Discount Brokers For Investing In ETFs

There are a wide variety of ETFs that attempt to track assets like foreign stocks, corporate bonds, commodities/oil and currencies. Stock brokers offer various tools and trackers for discovering ETFs that fit to an investor's objectives.

ETFs (exchange-traded funds) have been rapidly increasing in popularity since their advent. They have a number of attractive features as opposed to stock or mutual funds. ETFs are great sources of asset classes for one's portfolio diversification. As most ETFS aren't actively managed, they have lower management fees than mutual funds. Exchange-traded funds trade like stocks, meaning investors can buy and sell them during the day as opposed to mutual funds, which usually execute at the close. That is why ETFs are becoming more popular.