Fidelity Investments holds a narrow lead over Charles Schwab as an investment platform for purchasing exchange-traded funds. Charles Schwab closely rivals it with zero commissions on online ETF trades and customer service.
Offers thousands of commission-free ETFs and strong brokerage features.
But the ETF itself matters more than the brokerage
For long-term investing, I'd generally favor a broad, low-cost index ETF rather than trying to pick the “hottest” ETF. ETFs can provide substantial diversification, although a narrowly focused ETF isn't necessarily diversified.
For example, depending on your goal, you might investigate broad-market ETFs tracking:
S&P 500 — large U.S. companies
Total U.S. stock market — large, mid- and small-cap U.S. companies
Total world stock market — U.S. + international stocks
Bond-market ETFs — for reducing portfolio volatility
And don't choose solely based on a low expense ratio: the SEC notes that fees, trading costs, spreads, and other expenses can materially affect long-term returns.
If you tell me your age, how much you want to invest (e.g. $5,000 or $500/month), your time horizon, and whether this is for retirement or a regular brokerage account, I can suggest a specific ETF + brokerage combination and show you what the potential growth could look like.
The "best" place to invest in an Exchange-Traded Fund (ETF) depends heavily on your experience level, how you want to manage your portfolio, and the features you value most. Because most major brokerages have eliminated online commission fees for standard U.S. stock and ETF trades, you have several top-tier choices that charge $0 per trade.[](https://www.investopedia.com/best-online-brokers-4587872)
The leading brokerage platforms for ETF investing are categorized by their primary strengths:
Charles Schwab — Best for Customer Service & Research : Known for stellar 24/7 customer support, an extensive library of research tools, and a seamless transition if you ever want to upgrade to more advanced trading platforms like thinkorswim. Learn more at Charles Schwab.[](https://www.nerdwallet.com/investing/best/online-brokers-for-stock-trading)
Vanguard — Best for Buy-and-Hold / Index Investing : The pioneer of index funds and low-cost investing. While their interface is more utilitarian and built for long-term passive holding rather than active day-trading, it’s a natural home if you plan to buy Vanguard ETFs (like VTI or VOO) and hold them for decades. Visit Vanguard.
Interactive Brokers (IBKR) — Best for International & Advanced Investors : If you need global market access, advanced analytical tools, or low-cost margin rates, Interactive Brokers is a powerhouse, though its interface has a steeper learning curve. Explore options on Interactive Brokers.
If you’re in the U.S. and want to open an account to trade ETFs (exchange-traded funds), I’d start by comparing Fidelity, Charles Schwab, and Vanguard. All three are established brokerage firms, but the best choice depends on whether you want to invest for the long term, trade frequently, or keep things as simple as possible.
One important distinction: buying and holding ETFs for years is different from actively trading them. You generally want low costs, a reliable platform, and access to the ETFs you want—not necessarily the broker with the flashiest trading app.
My top choices for ETF trading
1. Fidelity Investments
(Best overall for most beginners)
Best for low-cost investing and flexibility
$0 online commissions on U.S.-listed ETFs and no account minimum.
Fractional ETF investing from $1, including eligible ETFs beyond Fidelity's own funds.
Strong research tools and recurring investment features.
Open an account:
2. Charles Schwab
Best for customer service and an all-around brokerage
$0 online commissions on listed ETFs.
No account or trading minimums.
A good option if you value customer support and a broad range of investing services.
Open an account:
3. Vanguard
Best for long-term, buy-and-hold ETF investing
Particularly appealing if you want to build a diversified portfolio and hold it for years.
Fractional investing is available for Vanguard ETFs.
A natural choice for investors who prefer Vanguard's index-fund lineup.
Open an account:
Quick comparison
Feature
Fidelity
Schwab
Vanguard
Online ETF commissions
$0 on eligible U.S. ETFs
$0 on listed ETFs
Generally $0 on online ETF trades
Minimum to open
$0
$0
Check account requirements
Fractional ETF shares
Broad eligible selection
Commission policies and fractional-share eligibility can vary by investment and may change. Confirm the current terms before opening an account.
Which type of account should you open?
Regular brokerage account: Best if you want to buy and sell ETFs without retirement-account withdrawal rules.
Roth IRA: Worth considering if you're investing for retirement and meet the eligibility requirements. Qualified withdrawals can be tax-free.
Traditional IRA: Another retirement option, with tax treatment that differs from a Roth IRA.
My recommendation
I'd choose Fidelity as the starting point for most people. It combines commission-free online ETF trading, $1 fractional investing, and useful research tools.
Remember that $0 trading commissions don't eliminate ETF expense ratios, bid-ask spreads, or investment risk.
One question so I can narrow this down for you: Are you planning to invest in ETFs for the long term, or actively trade them to make short-term profits?
The top choices categorized by what they do best include:
Fidelity: Best Overall and for Beginners. Fidelity offers $0 online commission for US-listed stocks and ETFs, a $0 account minimum, exceptional research and screening tools, and fractional share trading. It is widely praised for combining ease of use for beginners with deep analytical features for advanced investors.[](]()](]()]()
S&P 500 stocks through Stock Slices; ETF access differs
Vanguard: Best for Long-Term, Buy-and-Hold Investors. Known as the pioneer of index funds and low-cost investing, Vanguard is ideal if your strategy is strictly passive buy-and-hold retirement investing. While its interface is more utilitarian, it aligns with a long-term mindset.[](https://www.nerdwallet.com/investing/best/online-brokers-for-beginners)
