Best Discount Brokers: Lowest Mutual Fund Trading Fee

By Pinyo, on July 4, 2011

There is no definitive answer for who is the best discount broker. The best discount broker for you may not be the best for others — it really depends on your investment style and needs. My previous list of discount brokers focuses on brokerage firms for active traders who mainly trade stocks. This list focuses on investors who invest primarily in mutual funds. The list is sorted from the lowest commission cost to the highest; with additional information about mutual funds where available.

Since brokers can change their offers at any given time, it’s highly recommend that you visit the site and review the most recent information carefully.

Stock Brokers with Lowest Mutual Fund Trading Fees

Broker	Notes
TradeMONSTER	Get up to $250 for transferring your account to tradeMONSTER today. $7.50 for all online stock and ETF trades. $0.50 per contract. $12.50 minimum. $15.00 fee for mutual fund purchases. Free to sell.
OptionsHouse	Open an account today and receive 100 commission-free trades. Multiple promotions available. Barron’s rated best for options traders for 2009 and 2010. $3.95 for all online stock and ETF trades. $5.00 for 5 contracts or $8.50 plus $0.15 per contract for all option trades. $9.95 fee for mutual fund trades.
OptionsXpress	Open an account today and receive $100. $9.95 for all online stock and ETF trades. $1.25 per contract. $12.95 minimum. $9.95 fee for mutual fund trades.
Firstrade	Firstrade is currently offering 250 free trades for new accounts. $6.95 for all online stock and ETF trades. $6.95 plus $0.75 per contract for all option trades. $9.95 for online mutual fund trades with over 11,000 mutual funds.
Zecco Trading	$4.95 for all online stock and ETF trades. $4.95 plus $0.65 per contract for all option trades. $10.00 fee for mutual fund trades.
TradeKing	TradeKing earned 4-Star Rating in Barron’s 2012 Online Broker Survey for the sixth year in a row. $4.95 for all online stock and ETF trades. $4.95 plus $0.65 per contract. $14.95 fee for mutual fund trades.
Scottrade	Scottrade has over 500 local branch offices nationwide. $7.00 for all online stock and ETF trades. $7.00 plus $1.25 per contract for all option trades. $17.00 fee for mutual fund trades. Over 14,500 funds available.
ShareBuilder	Buy stocks for $4 with Automatic Investing. Open an account today and receive $50 new account bonus. $9.95 for all online stock and ETF trades. $1.25 per contract for all option trades. $19.95 fee for mutual fund trades. No Transaction Fee (NTF) program provides access to over 70 funds including the ING Mutual Funds.
E*Trade	E-trade is strong in research and trading tools. Open an account today and trade free for 60 days, and get up to $500 based on your deposit amount. $9.99 for all online stock and ETF trades. $9.99 plus $0.75 per contract for all option trades. $19.99 fee for mutual fund trades. Fees are lower for high volume traders.
Charles Schwab	Schwab has a well-rounded services and products portfolio, and offers more advice and research than many competitors. $8.95 for all online stock and ETF trades. $8.95 plus $0.75 per contract for all option trades. $49.95 for online mutual fund trades.No transaction fee when trading thousands of no-load, no-transaction-fee Mutual Fund OneSource® funds.
TD Ameritrade	Open an account today and trade free for 60 days, and get up to $600 based on your deposit amount. $9.99 for all online stock and ETF trades. $9.99 plus $0.75 per contract for all option trades. $49.99 fee for mutual fund trades. No-transaction fee (NTF) funds available.
Fidelity	Fidelity boasts a robust mix of investments, tools and banking services. $7.95 for all online stock and ETF trades. $8.95 plus $0.75 per contract for all option trades. $75 for online mutual fund trades. No transaction fee when trading over 1,400 Fidelity and non–Fidelity mutual funds.

In general, you should find a discount broker that offers mutual funds you’d like to invest in for no-transaction fee. Usually, you can get this by opening an account directly with the mutual fund company itself – e.g., Fidelity and Vanguard are the two best examples. If you do not want to open an account with the fund company, Zecco Trading, TradeKing, E*Trade offers the right balance between trade commission, research tools, and funds availability.

Investing Resources

In addition to the brokers listed above here are additional websites that might be of interest to you.

		Betterment is a simpler way to invest. Instead of doing your own investing, all you have to do is just answer a few questions about who you are and Betterment will automatically invest the money for you. Sign up today and get a $25 new account bonus.
		Morningstar offers free video reports, articles, data, and tools. Dig into their lineup of e-newsletters and investing classroom courses outlining sensible strategies for maximizing your investments. Premium membership includes analyst research, Portfolio X-Ray, investment picks, and more.

Pinyo is the owner of Moolanomy Personal Finance and an entrepreneur with over 20 years of business experience. He is interested in business management, investing and wealth management. He has written for many online publications, including American Express Currency and U.S. News Money. You can follow him on Facebook and Twitter.

Add Your Question or Comment (2 Comments)

1. Samson Smith:

   September 16, 2009 at 2:11 am

   Great post, this post will definitely help me and other people who is searching for such detailed information.
2. Delfin:

   March 24, 2011 at 8:25 am

   This what I am looking for the Stock Brokers with Lowest Mutual Fund Trading Fees.

   Thanks Pinyo for this wonderful list with details. Its really very helpful for me & I am sure will help others too.