Best ETF Brokers

Trading exchange-traded funds (ETFs) requires choosing a platform that aligns with your trading style, experience level and needs. 

Whether you’re a seasoned professional looking for advanced tools and global market access or a beginner looking for a user-friendly interface to get started with ETFs, this guide will give you an overview of the strengths and weaknesses of each platform.   

How We Chose the Best ETF Brokers

We chose the best ETF brokers by evaluating their fund access, fee structure and effective fund screening tools, prioritizing platforms that empower investors of all levels for cost-efficient portfolio growth.

6 Best ETF Brokers

Best for Cost-Conscious Investors: SoFi

SoFi Invest is there to help you plan for the future, including saving for a house down payment or paying for college and investing for large purchases. The platform will help rebalance your investments, avoid risk and help you stay “hands-off” with your investments.

Key Features:

• You can start investing through SoFi with as little as $1
• Make one-time or recurring payments depending on your financial situation
• Active and passive investing plans
• You can trade other assets like options and crypto, if you like

Who It’s Best For: SoFi offers trading with no commissions, simple management tools, and a range of other financial services that are excellent for anyone in any situation.

Interactive Brokers – Best for Advanced ETF Traders

Interactive Brokers (IBKR) is a premier platform for serious ETF traders who prioritize low costs, global market access and advanced trading tools. With its tiered commission structure and access to ETFs across various exchanges, it caters to active traders and those with complex investment strategies.

Key Features: 

• Fees: IBKR’s tiered commission structure, where costs decrease with higher trading volumes, can result in low per-share or percentage-based commissions for ETFs. It also offers a fixed-rate commission option. There is no minimum for most account types, but inactivity fees may apply to accounts with low trading activity and small balances.

• Investment Access: IBKR provides access to various ETFs, including those focused on specific sectors, geographies and investment strategies. The platform supports trading on many global exchanges, allowing access to ETFs outside the United States. Beyond ETFs, investors can trade stocks, options, futures, currencies and bonds on a single integrated platform.

• Platform Experience: IBKR offers powerful desktop (Trader Workstation), web (Client Portal) and mobile applications designed for active traders. Trader Workstation is customizable and provides advanced charting tools, real-time data feeds and sophisticated order types. The mobile app offers trading on the go with many of the features available on the desktop platform. 

• Tools/Education Highlights: IBKR offers many tools, including advanced charting with technical indicators, backtesting capabilities, risk-management tools and real-time news and analytics. It also offers educational resources like webinars and tutorials to help users navigate the platforms and understand trading concepts.

• Drawbacks: Interactive Brokers’ platforms and fee structures are complex and may be overwhelming for novice investors who prefer a simpler, more intuitive interface. The inactivity fees may deter buy-and-hold investors with smaller accounts who trade infrequently. 

Who It’s Best For: Active and sophisticated ETF traders who want low costs, broad international market access and advanced trading. 

eToro – Best for Beginners

eToro provides a user-friendly platform that simplifies ETF trading for beginners, particularly those interested in learning from and interacting with a community of investors. Its social trading features and commission-free ETF trading make it a good option for investors new to trading ETFs.

Key Features: 

• Fees: eToro offers commission-free trading for ETFs, which is a big advantage for beginners making smaller or frequent trades. However, investors may incur fees such as currency conversion, $5 per withdrawal charges and a $10 monthly inactivity fee after 12 months of no login activity.

• Investment Access: eToro provides access to more than 300 ETFs covering various sectors, indices and strategies. eToro’s selection may not be as extensive as other platforms, but it provides a solid starting point for diversification. It also offers access to stocks, cryptocurrencies and options.

• Platform Experience: The eToro platform is intuitive and visually appealing, making it easy for beginners to navigate on both desktop and mobile apps. Its interface is simple, with clear displays of asset prices and straightforward trading processes. The mobile app mirrors the desktop experience. 

• Tools/Education Highlights: Beginners can learn from other traders using eToro’s social trading feature, which allows them to follow and copy other users’ trades. eToro also provides educational resources through its Trading Academy, including courses and webinars designed for different experience levels, including ETF basics. It also offers a demo account with virtual funds for practice.

• Drawbacks: Social trading access is a plus for beginners, but relying only on others’ actions without understanding the underlying strategy is risky. Accounts are primarily in USD, so users depositing and withdrawing in other currencies will incur conversion fees. The withdrawal fee is also something to consider for smaller accounts. 

Who It’s Best For: Beginners who are interested in learning about ETF trading through a social platform and appreciate a user-friendly interface with commission-free ETF trading.

E*Trade – Best for Active Traders

E*Trade provides active ETF traders with robust platforms, competitive commission structures and tools designed for analysis and rapid execution. With its focus on empowering traders through technology and education, E*Trade caters to investors who actively manage their ETF portfolios. 

Key Features: 

• Fees: E*Trade offers commission-free trading for online U.S.-listed stocks, ETFs and options. For active traders executing 30 or more stock, ETF and options trades per quarter, the options contract fee drops from $0.65 to $0.50 per contract. Futures contracts are available at $1.50 per contract per side plus exchange and regulatory fees. Margin rates are tiered based on the debit balance.

• Investment Access: Active traders on E*Trade have access to a wide selection of ETFs across various sectors, asset classes and investment strategies. Beyond ETFs, the platform supports trading stocks, options, futures, bonds and mutual funds. It also offers 24-hour trading on some ETFs. 

• Platform Experience: E*Trade offers multiple platforms for different levels of trading activity. The web platform is intuitive for general use, while Power E*Trade, available on desktop and mobile, is designed for active traders. Power E*Trade has customizable layouts, advanced charting, more than 30 drawing tools, Level II quotes and integrated order-entry tools. A new platform, Power E*Trad Pro, is in a pilot phase and scheduled for full launch in June.

• Tools/Education Highlights: E*Trade provides tools such as advanced charting with technical pattern recognition, ETF and stock screeners with filtering criteria, options analytics and real-time market data. It also provides educational resources such as articles, videos, webinars and dedicated support for active traders. The Live Action scanner on Power E*Trad helps identify real-time trading opportunities based on technical, fundamental, earnings, sentiment and news events.

• Drawbacks: Less experienced traders may find Power E*Trade’s extensive features difficult to navigate. Although commission-free for most ETFs, active traders in options or futures will still have per-contract fees. Margin trading incurs interest charges that active traders should consider. 

Who It’s Best For: Active ETF traders who want a sophisticated trading platform with advanced analytical tools, customizable interfaces and competitive pricing for high-volume trading.

Plus500 – Best for Mobile Users

Plus500 offers a streamlined, mobile-centric platform for trading contracts for difference (CFDs) on ETFs. Its intuitive design and focus on accessibility are great for traders who prioritize trading on their smartphones or tablets. Plus500 primarily offers CFDs, which are leveraged derivative products that allow traders to speculate on the price movements of ETFs without owning the underlying asset. 

Key Features: 

• Fees: Plus500 typically does not charge brokerage commissions or account maintenance fees. Its revenue is mainly generated through the spread – the difference between the buy and sell prices of the CFD. Overnight funding fees may apply for positions held longer than one day. 

• Investment Access: Plus500 provides access to CFDs on many popular ETFs covering different indices, sectors and commodities. Users are not directly investing in the ETFs, but they can speculate on their price fluctuations. The range of ETF CFDs may be more limited compared to platforms offering direct ETF purchases. Plus500 also offers CFDs on other asset classes, including stocks, forex, cryptocurrencies and commodities. 

• Platform Experience: Plus500’s user-friendly mobile trading app is intuitive, with clear charts, easy order placement and accessible account management features.

• Tools/Education Highlights: The Plus500 platform offers basic charting tools with some technical indicators that are suitable for mobile viewing. It also provides price alerts and risk-management tools like stop-loss and take-profit orders. Educational resources available through the website include guides and FAQs on CFD trading. The depth of analytical tools and educaitonal content may be less extensive than platforms geared toward active, desktop traders.   

• Drawbacks: Plus500 offers CFD trading rather than direct ETF investment. CFDs are complex instruments that come with risk of losing money quickly because of leverage. The reliance on spreads as the man cost is less transparent than direct commissions for active traders. 

Who It’s Best For: Mobile-first users who are comfortable with the risks of CFD trading and want a simple platform to speculate on the price movements of ETFs. 

Charles Schwab – Best for All Trading Levels

Charles Schwab’s user-friendly platform caters to ETF investors of all experience levels. From beginners seeking simplicity and educational resources to active traders who want sophisticated tools, Schwab provides a balance of commission-free trading, extensive ETF selection, robust platforms and strong customer support.

Key Features: 

• Fees: Charles Schwab offers commission-free online trading for U.S. exchange-listed stocks ETFs and options. There are no account minimums to open or maintain most brokerage accounts. Options trades have $0.65 per-contract fee and futures trading is available with a per-contract fee plus exchange and regulatory fees. 

• Investment Access: Schwab offers access to a range of ETFs, including thos from its own popular and low-cost lineup and ETFs from other major providers covering divers investment strategies, sectors and geographies. Investors also can trade stocks, options, mutual funds, bonds and futures on the platform.

• Platform Experience: Charles Schwab offers platforms to suit different needs and trading styles. The mobile app and Schwab.com provide an intuitive and streamlined experience for beginners and long-term investors. For more active traders, the thinkorswim platform offers advanced charting tools, technical analysis capabilities and sophisticated order entry options. 

• Tools/Education Highlights: Schwab offers articles, videos, webinars and interactive tools covering ETF basics, investment strategies and market analysis. Thinkorswim provides advanced charting with numerous indicators, drawing tools, paper trading capabilities and a community for sharing ideas.

Who It’s Best For: ETF investors of all experience levels, from beginners who want educational resources to active traders looking for advanced tools and a wide selection of investment products.

Choosing the Right ETF Broker

Choosing the right ETF broker can impact your investment success. The platforms offer many options catering to a variety of trader profiles.

Interactive brokers are well-suited for advanced traders who want low costs and extensive global access, while eToro offers a beginner-friendly, social trading experience. Active traders will appreciate E*Trade’s platforms and tools and Plus500 provides a streamlined, mobile-first approach for CFD-based ETF speculation. Charles Schwab dlievers commission-free trading, a wide ETF selection and comprehensive resources.

The right brokerage platform’s features, fee structures and available ETF markets should align with your investment objectives and trading styles. 

Frequently Asked Questions