5 Best Platforms For Zero-Fee ETF Investing

So, you're looking to get into Exchange-Traded Funds, or ETFs. Smart move. They offer diversification, generally lower costs, and trade like stocks. But the first hurdle everyone hits is simple: where do you actually buy these things? Forget the jargon and the sales pitches for a moment.

Let's cut through the noise and talk about how you gain access to the ETF market, the different players involved, and how to make the right moves without getting tripped up.

Insights

• Accessing ETFs usually requires a brokerage account, though some robo-advisors offer managed ETF portfolios without direct trading access.
• Your main options for getting ETF access include online discount brokers, full-service firms, robo-advisors, and brokerage arms of major banks, each serving different needs and cost structures.
• Using limit orders instead of market orders is a critical tactic to control your purchase price, especially for ETFs that don't trade heavily.
• While many brokers boast commission-free ETF trading, you still face costs like bid-ask spreads and ongoing expense ratios – don't ignore them.
• Features like fractional share investing and quality research tools are becoming standard, making it easier to build positions and make informed choices.

Your Gateway: The Brokerage Account

Let's get one thing straight: you can't just walk into a Vanguard office or call up BlackRock and buy a few shares of their popular ETFs off the shelf – not unless you're moving institutional-sized money. For the rest of us, the gateway to buying and selling ETFs is a brokerage account.

Think of it as your command center for accessing the financial markets. It's an investment account held at a licensed brokerage firm that lets you deposit money and place orders for securities like stocks, bonds, and, yes, ETFs.

Why the middleman? Because ETFs trade on major stock exchanges (like the NYSE or Nasdaq) throughout the trading day, just like individual company stocks. Your broker is the licensed entity authorized to execute trades on these exchanges on your behalf.

Without that account, you're essentially locked out of the stadium. The broker handles the transaction, connecting buyers and sellers in the vast secondary market. This system provides the liquidity and accessibility that makes ETFs so popular for individual investors.

Choosing Your Weapon: Types of Brokerage Providers

Not all brokers are created equal. The landscape is diverse, offering different service levels, costs, and tools. Understanding the main types helps you pick the right platform for your strategy and needs.

The primary options available to investors include online discount brokers, the traditional full-service players, automated robo-advisors, and the investment arms of large banks.

1. Online Discount Brokers: The DIY Route

Firms like Charles Schwab, Fidelity Investments, E*TRADE, and Interactive Brokers dominate this space, alongside newer entrants like Robinhood and Webull. These platforms are the go-to for self-directed investors who prefer to make their own decisions.

Their main draw? Low or zero commissions on stock and ETF trades. Fidelity, for example, offers access to over 2,500 commission-free ETFs. They typically provide user-friendly websites and mobile apps, along with a decent suite of research tools and screeners. If you're comfortable managing your own portfolio and are fee-sensitive, this is often the most efficient path.

2. Full-Service Brokers: The Guided Approach

Think Merrill Lynch, Morgan Stanley, or Edward Jones. These firms cater to investors looking for a more hands-on relationship, complete with personalized financial advice and comprehensive wealth planning.

You'll generally pay more here, either through higher commissions, advisory fees based on assets, or other charges. But in return, you get a dedicated advisor who helps craft and manage your strategy. This model suits those who value professional guidance and are willing to pay a premium for it.

3. Robo-Advisors: Automation Nation

Platforms like Betterment and Wealthfront have carved out a niche by offering automated investment management, primarily using low-cost ETFs. You answer questions about your goals and risk tolerance, and their algorithms build and maintain a diversified portfolio for you.

While you don't typically pick and trade individual ETFs yourself, they handle the rebalancing and investment selection based on your profile. It's a set-it-and-forget-it approach that appeals to hands-off investors, often with lower advisory fees than traditional human advisors. Keep in mind, you're paying for the management service, even if the underlying ETF trades might be commission-free.

4. Bank-Affiliated Brokers: The Convenience Play

Many large banks, such as Chase (J.P. Morgan Wealth Management) and Wells Fargo Advisors, have their own brokerage divisions. The main appeal here is often convenience – managing your banking and investing under one roof.

Their platforms and fee structures can vary widely, sometimes competing directly with online discount brokers, other times leaning more towards a full-service model. If you value integration with your existing bank, it's worth exploring, but compare their offerings and costs against the specialists.

Executing the Trade: How to Actually Buy an ETF

Alright, you've picked your broker and funded the account. Now for the main event: buying your chosen ETF. The process is generally similar across platforms, whether you're using a website or a mobile app.

Choose Your Broker and Open the Account: This first step is critical. Consider the factors we discussed – fees, tools, support, account types (like a standard taxable account, Traditional IRA, Roth IRA). Opening an account is usually done online and requires personal and financial details.

Fund Your Account: You need cash in the account before you can trade. This is typically done via electronic funds transfer (EFT) from a linked bank account, wire transfer, or sometimes check deposit. You must ensure the funds have settled and are available for trading, which can take a few business days.

Research and Select Your ETF: Don't just throw darts. Use the broker's tools, ETF provider websites (like iShares, Vanguard, State Street), or independent financial sites to research ETFs. Look beyond the name.

Dig into the expense ratio (the annual fee), the underlying index or strategy, the specific holdings, trading volume (liquidity), and how it fits your overall portfolio. Increasingly, you'll also find specialized options, including cryptocurrency ETFs like Fidelity's Spot Bitcoin ETF (FBTC), available through major brokers.

Place the Order: Navigate to the trading section of your broker's platform. You'll need the ETF's ticker symbol – a unique identifier like SPY for the SPDR S&P 500 ETF or QQQ for the Invesco QQQ Trust tracking the Nasdaq-100.

Specify Order Details – Quantity and Type: Decide how much you want to buy. You can usually specify a number of shares or, increasingly, a dollar amount if your broker supports fractional shares. Buying fractional shares allows you to invest precise dollar amounts (e.g., $100) even if that doesn't equate to a whole number of shares, which is great for smaller investments or dollar-cost averaging.

Crucially, you need to choose an order type. A market order buys at the best available current price. A limit order lets you specify the maximum price you're willing to pay.

Use limit orders for ETFs, especially less liquid ones. Market orders can lead to nasty surprises if the price jumps unexpectedly between when you place the order and when it executes, particularly in fast markets or with ETFs that have wide bid-ask spreads.

Review and Submit: Always double-check everything – ticker symbol, quantity, order type, estimated total cost (including any potential commissions, though often zero for ETFs). Once satisfied, submit the order.

Confirmation: If you used a limit order, it will only execute if the market price reaches your specified limit price or better during trading hours. A market order should execute almost immediately. Once filled, you'll get a confirmation, and the ETF shares will appear in your account holdings.

Understanding the True Costs

The "race to zero" commissions has been great marketing, but don't assume ETF investing is entirely free. Understanding the different costs involved is vital for managing your returns.

Brokerage Commissions: While many major brokers now offer $0 commissions for online trading of U.S.-listed ETFs, it's not universal. Some brokers might still charge commissions, especially for certain types of ETFs or transactions. Always verify the commission schedule for the specific ETFs you plan to trade with your chosen broker.

The Bid-Ask Spread: This is an often-overlooked trading cost. It's the small difference between the highest price a buyer is willing to pay (the bid) and the lowest price a seller is willing to accept (the ask) at any given moment. For highly liquid ETFs (like those tracking the S&P 500), this spread is usually pennies.

But for less popular, thinly traded ETFs, the spread can be wider, meaning you effectively pay a bit more when you buy and receive a bit less when you sell. This is another reason why limit orders are your friend – they protect you from executing at an unfavorable "ask" price.

Ongoing ETF Costs (Expense Ratio): This isn't a trading cost, but it directly impacts your investment returns over time. The expense ratio is the annual fee charged by the ETF provider to cover management and operational costs, expressed as a percentage of your investment.

Competition has driven these down significantly. According to State Street's 2025 ETF outlook, average fees are around 0.12% for passive ETFs and 0.45% for active ETFs. While seemingly small, these fees compound, so lower is generally better, all else being equal.

Analysis

Choosing where to buy ETFs isn't just about finding the cheapest platform; it's about finding the right strategic fit. The zero-commission wars grabbed headlines, but savvy investors know that execution quality, platform tools, available research, and the hidden cost of the bid-ask spread can matter just as much, if not more, than saving a few bucks on commission – especially now that commissions are often zero anyway.

Online discount brokers offer tremendous value for confident DIY investors. The breadth of commission-free ETFs at places like Fidelity or Schwab is impressive. However, the sheer volume of choices can be overwhelming. Their research tools are helpful, but you need the discipline to use them effectively and avoid chasing performance or falling for thematic ETF hype without understanding the risks.

Full-service brokers still have a place, particularly for complex financial situations or for those who genuinely benefit from ongoing advice and planning. But you must be clear about the value you're receiving for the higher fees. Is the advice generic, or truly tailored and worth the premium?

Robo-advisors are interesting. They simplify diversification and automate discipline (like rebalancing), which is valuable for many, especially newer investors. The trade-off is less control and the ongoing advisory fee, which, while typically lower than a human advisor's, is still a drag on returns compared to managing a similar low-cost ETF portfolio yourself.

The rise of fractional shares is a significant development, democratizing access and making strategies like dollar-cost averaging much easier to implement precisely. Likewise, the availability of crypto ETFs directly within traditional brokerage accounts marks a major shift, bringing digital assets into the mainstream investment fold, albeit with their own unique volatility and regulatory considerations.

Ultimately, the "best" place depends on your experience, the complexity of your needs, how much support you want, and your sensitivity to different types of costs (commissions vs. advisory fees vs. trading spreads). Don't just follow the herd; assess which environment best supports your long-term investment strategy.

Final Thoughts

Finding where to buy ETFs boils down to selecting the right brokerage platform for your individual needs. Whether you prioritize rock-bottom costs and sophisticated tools with an online broker, seek personalized guidance from a full-service firm, prefer the automated approach of a robo-advisor, or value the convenience of a bank-affiliated option, there's a solution available.

Remember the key tactical points: use limit orders to control your entry price, understand the total costs beyond just commissions (spreads and expense ratios matter), and leverage features like fractional shares if they suit your strategy.

The ETF market itself continues to expand rapidly – State Street's 2025 outlook projects the Australian ETF market alone to hit AU$300 billion, reflecting global growth and innovation. New types of ETFs, from active strategies to cryptocurrency exposure, are constantly emerging.

Choosing the right access point – your broker – is the first step in navigating this dynamic landscape effectively. Make that choice deliberately, aligning it with your investment style, technical requirements, and cost tolerance. With this knowledge, you're better equipped to make informed decisions as you build your ETF portfolio.

"There shall be an ETF for every asset class, and it shall be virtually free to own."

Matt Hougan & Dave Nadig ETF.com Contributors