Best brokerage firms for mutual funds investing. Top online brokerage accounts with the lowest trading commissions and the best selection of mutual funds.

With regard to investing in mutual funds, well-known big discount brokers such as Charles Schwab ($76), Fidelity ($49.99 or $75 for some funds) and TD Ameritrade ($49.99) are often considered as the best. They are also reputable investing companies that have gained the trust of many customers. They all provide a large number of mutual funds, including their own selections of commission-free NTF funds. The number of funds available as well as the investing cost varies from broker to broker. The latter often is very steep for big-name brokerage companies though.

Very often, less-advertised online brokerage firms offer lower commissions on mutual funds (below $20) and, as their big competitors, also provide a great number of mutual funds with a selection of commission-free NTF funds. This selection of mutual funds can also include funds from well-known fund families like Fidelity, Schwab, T.Rowe Price, Vanguard, American, USAA and others.

Best Brokers For Mutual Funds: Scottrade

Scottrade brokerage firm rating
  • Stocks & ETFs: $7
  • Options: $7 + $0.70 per contract
  • Mutual Funds: $17
  • Over 14,500 mutual funds, including 7,055 no-load mutual funds and 2,637 commission-free NTF funds
  • Access to Morningstar mutual fund analyst reports and ratings
  • Pre-defined screens and the mutual fund Select List to narrow down choices
  • The selection of mutual funds includes, but is not limited to American Funds, Goldman Sachs, John Hancock, JPMorgan, Pimco, RBC Global Asset Management, Russell, T. Rowe Price, USAA, Vanguard funds.

Scottrade Advantages

  • Clear and straightforward fees
  • Broad selection of investments
  • No account set up, maintenance or inactivity fees
  • No cost IRAs
  • Over 14,500 mutual funds, including 2,637 commission-free NTF funds
  • Free dividend reinvestment program (FRIP)
  • Free real-time streaming quotes and charts for non-professionals
  • Free online educational resources and free live investment workshops
  • Free online banking through Scottrade Bank
  • Over 500+ locations throughout the country
  • Ranks highest in the J.D. Power 2016 U.S. Self-Directed Investor Satisfaction StudySM
  • After-hours trading

Scottrade, the well-known and solid company, combines the convenience of an online stock broker with the comfort of a local business. The brokerage firm offer its clients more than 500 brick-and-mortar locations throughout the United States, and a unique dividend reinvestment program called the Flexible Reinvestment Program (FRP). A wide selection of investment options from stocks to municipal bonds and CDs, along with $7 stock trades, makes Scottrade a top option for investors.

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Best Brokers For Mutual Funds: TradeKing

TradeKing brokerage firm rating
  • Stocks & ETFs: $4.95
  • Options: $4.95 + $0.65 per contract
  • Mutual Funds: $9.95
  • Over 12,000 mutual funds, including load and no-load funds from most leading fund families
  • Lowest commissions on mutual funds ($9.95 buy or sell) among leading discount brokerage firms
  • TradeKing's Mutual Fund Center helps investors find top performers, screen, see in-depth breakdowns of fund characteristics
  • The selection of mutual funds includes, but is not limited to funds American Funds, Fidelity, Charles Schwab, Chase Investments, Citi Fund Management Inc, Deutsche Bank AG (London), Dodge & Cox, Global X, Goldman Sachs & Co/GSAM, Guggenheim Investments, USAA, Vanguard, WisdomTree, WellsFargo.

TradeKing Advantages

  • Very low commissions
  • Excellent customer support via email, phone and chat
  • Trader Network: an online community of investors
  • Customizable trading platform with responsive design
  • Free DRIPs/Dividend Reinvestment plans (whole and fractional shares)
  • Free real time streaming quotes for active traders
  • Free access to MarketGrader's research reports
  • Extensive educational resources
  • Extra hours trading

TradeKing is the definition of a discount broker, offering low commission equity trades, extensive educational material and trading network. TradeKing gets top marks for a history of excellent customer service and a new trading platform, TradeKing LIVE, that is fully customizable and user friendly. The research tools are intuitive and easy-to-use, which is why Barron’s has rated TradeKing very high for Site Usability the past few years. The investment choices are comparative with bigger names in the industry, and even include forex trading.

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The goal of a mutual fund is to make its investors money through capital gains and income through an underlying securities - stocks, bonds, money markets and other assets. The underlying securities help easily diversify investors' portfolios by investing in a single mutual fund.