Best US Mutual Fund Brokers Compared

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A mutual fund is a managed portfolio of company equities and other financial instruments, such as bonds. US mutual fund brokers amalgamate a large body of investors and then invest on their behalf into carefully managed portfolio of stocks. They do this in return for a fee. Every investor will have a slice of the overall mutual fund, which will be proportionate to the overall holdings and number of investors in total. 

Best Mutual Fund Brokers 2024

US Mutual Fund AccountMutual Funds AvailableMutual Fund Trading CostsOur RatingMore Info
Interactive Brokers US Stock Trading48,000+0% – 3% or $14.95
(4.6)
See Platform

Our comparison table of US mutual fund brokers covers the key account features. These include, tight pricing, financial security, regulation, range of markets, added value and reviews. If you’re looking to compare US Mutual fund brokers, it makes sense to have all of the facts about this popular route to investment in the USA.

Interactive Brokers: Best overall mutual fund investment account

Interactive Brokers Review
Interactive Brokers

Name: Interactive Brokers

Description: Interactive Brokers is a major US online automated electronic broker company. The financial broker is listed on the Nasdaq Exchange with ticker IBKR. The firm operates in 150 electronic exchanges in 33 countries, and offers trading in 23 currencies. Interactive Brokers has more than 1.75 million institutional and retail customers.

Why we like them

Interactive Brokers is an exceptional trading platform that offers institutional-grade trading capabilities to private clients around the world. IBKR has some of the lowest trading and investing fees and the widest market range in the industry.

Pros

  • Very low dealing fees
  • Wide market range
  • Direct market access
  • Complex order types

Cons

  • Customer services can be slow
  • Pricing
    (5)
  • Market Access
    (5)
  • Apps & Platform
    (5)
  • Customer Service
    (3)
  • Research & Analysis
    (5)
Overall
4.6

FAQs:

Here are the answers to the most commonly asked questions by people searching for the best mutual fund brokers in America.

When you use US mutual fund brokers to invest, you take a slightly different route to purchasing a single share of a company’s stock or a bond issue. For example, with a mutual fund investment you won’t have voting rights. Instead, your share of that fund will represent a share of multiple investments across a range of securities. Investors will receive their return in the form of dividend distributions (which can be taken as cash or used to purchase more holdings in the fund), capital gains on underlying securities and rising prices of mutual share investments, again at the point of sale.

There are two different ways to invest through US mutual fund brokers. Firstly, you can use a fund supermarket which offers different mutual funds from a range of providers. Secondly, you can buy directly from fund companies such as Fidelity, T. Rowe Price or Vanguard.

Every investor will have their own preference for risk and reward and their own objectives for investing, for example, to fund a pension in later life. Some investors look for an income in the form of dividends and others will look for capital growth. It is important to look at individual mutual fund performance and have your own strategy for assessing which funds will be best placed to offer value to your portfolio.

Mutual funds offered by US mutual fund brokers offer a number of advantages including:

  1. Access to expertise: As mutual funds are managed, you don’t need to pick individual investments. Instead, you pay a fee for a professional to invest for you, using their skills and experience.
  2. Time: It is far quicker to invest in a mutual fund, than to research and buy individual securities.
  3. Diversification: mutual funds spread your risk across a range of holdings.
  4. Economies of scale: transaction costs are reduced because of the economies of scale involved in large-scale mutuals.
  5. Variety: There is a wide range of mutual funds on offer through US mutual fund brokers, covering all sectors of interest.
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