6 Best ETF Brokers Reviewed for 2024

Exchange-traded funds (ETFs) offer many benefits, including diversification, passive investing, and access to difficult-to-reach markets. That said, you’ll need to ensure you’re buying and selling ETFs with a reputable online broker.

This guide ranks the best ETF brokers for 2024. We reveal the top brokers for supported ETFs, commissions and management fees, safety, account minimums, and other important factors.

Best ETF Trading Platforms Reviews

The top ETF brokers for 2024 will now be reviewed in full. Some of the important factors we discuss include ETF trading fees, supported exchanges, minimum investment requirements, and consumer protections.

1. eToro – 0% Commission ETF Trading on US and International Markets [Regulated and Ideal for Beginners] 

We found that eToro is the best ETF broker for beginners. It offers a proprietary trading dashboard that is simple to use, even for those who have never previously invested in ETFs. This can be accessed online or via the eToro app for iOS and Android. What’s more, the minimum first-time deposit requirement starts at $10 and USD payments are processed fee-free.

That being said, non-USD deposits are charged 0.5% – including euros, pounds, and Australian dollars. Nevertheless, eToro makes up for this with its 0% commission offering – which includes more than 400 supported ETFs. Unlike other ETF brokers, its commission-free service extends to international markets. This includes the UK, Hong Kong, France, the Netherlands, and Germany.

Some of the most popular ETFs listed by eToro track index funds, such as the FTSE 100, Dow Jones, NASDAQ 100, and China 50. Some ETFs track specific stock niches, such as dividend or growth stocks. eToro also lists ETFs that track commodities, including the SPDR Gold and the iShares Silver Trust. All supported ETFs come with a minimum investment requirement of $10.

This is because eToro supports fractional investing, which will appeal to those on a budget. eToro supports thousands of other financial instruments, all accessible from the same account. This includes more than 3,000 commission-free stocks from around the world. eToro also enables clients to buy Bitcoin and other cryptocurrencies.

However, cryptocurrencies can’t be purchased commission-free – eToro charges 1% per slide. Moreover, eToro charges an additional 2% if you want to withdraw cryptocurrencies to a private wallet. Nevertheless, we also like eToro for its smart portfolios – which are similar to ETFs. These are hand-picked and managed by eToro, rather than traditional ETF providers like iShares and Vanguard.

Smart portfolios give you access to niche markets that are often unavailable elsewhere. This includes everything from artificial intelligence and robotics to clean energy and the Internet of Things. There is a higher minimum investment requirement of $500 when opting for a smart portfolio. But no additional trading fees apply.

eToro also offers copy trading tools, which is another way to invest passively. Copy trading allows you to mirror successful investors who use the eToro platform to trade. All eToro markets and features can be tested via a free demo account – which comes pre-loaded with $100,000 in paper funds.

eToro is a safe ETF broker – licenses have been issued by FINRA, FCA, ASIC, and CySEC. This ensures that ETFs always remain in possession of the account holder, even if eToro went bust. It also keeps client funds in segregated bank accounts. eToro is also a member of various client protection schemes, including the SIPC and FSCS. Finally, eToro is rated ‘Excellent’ on TrustPilot, based on over 21,000 ratings.

76% of retail investor accounts lose money when trading CFDs with this provider.

2. XTB – Leading ETF Brokerage With 0% Commission and up to 500x Leverage  

XTB is a popular ETF brokerage that supports thousands of assets in a CFD form. Aside from ETFs, users can invest or trade stocks, forex, commodities, and indices with 0% commission on stocks and ETFs up to 100,000 EUR of monthly turnover. If this threshold is reached, the commission is 0.2%.

To make it even more cost-effective, XTB doesn’t charge fees on deposits and withdrawals, as well as for account maintenance. XTB supports multiple deposit options including cards, bank transfers, and online payments from Skrill and Neteller. Thanks to having no deposit minimums, anyone can deposit a small amount to test the waters. If they like what they see, they can always deposit more without additional cost.

XTB offers a mobile app where users can trade all markets from the palm of their hands. Users can choose from around 300 global ETFs with a minimum transaction value of only 10 EUR. There’s an ETF scanner to help users find the right ETF for their needs. For those who want to take some risk, XTB offers up to 500x leverage and short-selling orders.

Beginners who want to learn how to trade have access to free educational materials and courses. With XTB’s demo account, users can trade with virtual money until they feel comfortable enough to start trading with real money.

XTB is part of XTB Group, which is regulated in Poland, the UK, and Spain.

3. Webull – Invest in US-Listed ETFs From $5 and No Trading Commissions to Pay  

Webull is a US-based stock broker that supports more than 3,300 ETFs. This includes ETFs from popular fund managers like iShares, SPDR, Vanguard, and Fidelity. Do note that Webull only supports US-listed ETFs, which will limit your ability to diversify into international markets.

All ETFs supported by Webull can be bought and sold without paying any commission. Fractional ETF investments are supported – a minimum of $5 applies to each trade. This is also the case with stocks and options, meaning Webull is ideal for budget investors. Webull also supports Bitcoin and some of the best altcoins. However, we found that spreads start from 1% on cryptocurrency trades – which is considered expensive.

There is no minimum deposit requirement at Webull. This ETF broker accepts ACH and bank wires. Registered users also have access to a free demo trading account – this comes pre-loaded with $1 million in paper funds. The Webull trading dashboard is available on multiple device types. This includes desktop software for Windows and Mac, plus a mobile app for iOS and Android.

Alternatively, investors can trade via the Webull website. Either way, Webull offers plenty of analysis features – including financial news, pricing charts, and technical indicators. Webull is also popular for its retirement accounts. It supports rollover, traditional, and Roth IRAs on a fee-free basis. Webull also offers margin accounts, allowing investors to trade ETFs with leverage.

4. AvaTrade – Trade Leveraged ETFs With Multiples of up to 1:400          

AvaTrade is one of the best day trading platforms for contracts-for-differences (CFDs). It enables traders to speculate on ETF prices without owning the underlying assets. AvaTrade CFDs simply track the real-time value of the respective ETF. This offers flexibility to traders, including the option for going long or short.

AvaTrade is also one of the best ETF brokers for leverage. Eligible traders can buy and sell ETF contracts with leverage of up to 1:400. This translates to a minimum margin requirement of just 0.25%. However, leverage limits can be restricted based on your country of residence. Moreover, AvaTrade isn’t suitable for US clients – who cannot legally trade CFDs.

The minimum deposit requirement at AvaTrade is just $100. No deposit fees are charged and there’s also the option of opening a demo account. This offers a risk-free way to practice trading ETFs via CFDs. AvaTrade has its own native trading platform – accessible via web and mobile browsers, plus an iOS and Android app. AvaTrade also supports MT4 and MT5.

We also like that AvaTrade is heavily regulated – it holds licenses in nine different countries. AvaTrade is also suitable for trading other leveraged assets. This includes US and intentional stocks, indices, commodities, and cryptocurrencies. AvaTrade is also considered one of the best forex brokers, with over 50 pairs supported. All markets on AvaTrade are commission-free.

Trading CFDs and FX Options entails risk and could result in the loss of your capital.

5. Robinhood – Fractional ETF Investing From $1 and IRAs With a 3% Deposit Match           

Robinhood is a popular stock and ETF broker with over 10.6 million monthly active users. The platform is particularly popular with casual investors – there’s no minimum deposit requirement. Moreover, all supported markets can be traded from just $1 – regardless of the underlying price. This includes thousands of stocks and ETFs, not to mention options and cryptocurrencies.

All ETFs available at Robinhood are listed on the NYSE and NASDAQ. No international exchanges are covered, although US clients can access foreign assets via ADRs. Nevertheless, Robinhood offers commission-free trading on all supported markets. Deposits and withdrawals are fee-free too. However, only the first $1,000 of deposits is credited instantly. The balance can take up to five working days.

That’s unless you sign up for the Robinhood gold account – which offers much higher instant deposit limits. The gold account comes with other perks, including advanced market data, interest of up to 4.9% on uninvested cash, and access to margin accounts at discounted fees. Moreover, gold accounts get a 3% match on IRA contributions.

Without a gold account, the contribution is only matched by 1%. Robinhood is available through web browsers and its iOS and Android app. All supported devices offer a user-friendly investing experience. One of the main drawbacks is that Robinhood engages in ‘payment for order flow‘. This means that it re-routes client orders to selected market makers – often resulting in sub-par prices.

6. Libertex – Trade Emerging Market ETFs With a Margin Requirement of 5%           

Libertex is another CFD broker that makes our list – enabling traders to speculate on ETFs without taking ownership. This option will appeal to traders who want exposure to the emerging markets. For example, Libertex offers iShares ETFs from Mexico, Brazil, and China. It also offers an ETF that tracks leading stocks from the broader Latin America continent.

All supported ETFs can be traded at a commission of just 0.003% per slide. That’s just $0.03 for every $1,000 traded. Moreover, Libertex is one of the best high-leverage brokers for trading ETFs. There is a minimum margin requirement of just 5%, allowing you to multiply your positions by 20x. Libertex supports three trading platforms – all are compatible with desktop and mobile devices.

This includes MT4, MT5, and its own native trading suite. Libertex is also a great option for trading other leveraged markets. It supports everything from forex and commodities to stocks and cryptocurrencies. All markets support long and short trading. Like all CFD brokers, the main drawback is that Libertex doesn’t accept US clients.

It does, however, accept traders from over 120 countries. More than three million traders use Libertex and the platform was launched 25 years ago. Libertex has also won various awards this year. This includes the ‘Best Trading Experience’ in the Ultimate Fintech Awards. It takes minutes to open a Libertex account and the broker also offers a free demo trading facility.

Trading in financial instruments is a risky activity and can bring not only profits but also losses

How to Pick an ETF Broker: Our Methodology 

Hundreds of online brokers support ETFs. This allows you to choose a suitable broker based on your priorities, such as low fees, access to international markets, or specific trading tools and features.

Read on to discover our methodology when ranking the best ETF brokers for this guide.

Regulation and Consumer Protection

We only consider ETF brokers that are adequately regulated. This ensures that investors are trading in a legitimate and safe environment. For example, eToro is regulated by FINRA, meaning it can legally accept US clients. eToro is also regulated by the FCA (UK), CySEC (EU), and ASIC (Australia). Investors based in any of these regions can safely invest in ETFs.

• We also prefer ETF brokers that segregate client investments.
• This means that even if the ETF broker goes bust, they don’t have a claim over your ETF positions.
• This is also the case with uninvested cash, which should be kept in regulated tier-one bank accounts that are separate from the broker.

For the safest investing experience, choose an ETF broker that is a member of a consumer protection program. For example, UK investors should look for FSCS-eligible brokers. The FSCS covers brokerage clients up to £85,000 – should the provider go bankrupt. In the US, investors should use ETF brokers that are members of the SIPC. The SIPC covers investment accounts up to $500,000.

Supported ETF Markets

The most popular ETF markets are those that track leading index funds. This includes the Dow Jones, S&P 500, Russell 2000, and NASDAQ 100. The top ETF brokers also support international markets. For instance, the UK’s FTSE 100 or the Euronext 100. It’s also worth exploring whether emerging market ETFs are available, such as those in Asia, South America, and the Middle East.

In addition, some brokers offer ETFs that track specific stock types. For example, there are plenty of dividend stock ETFs, as well as those tracking growth stocks and small-cap stocks. It’s also possible to invest in industry-specific ETFs. For example, ETFs offering exposure to renewable energy, artificial intelligence, or FinTech.

Investors should also consider which fund managers supply ETFs. Not only will this have a direct impact on fees but also liquidity. For example, ETF powerhouses like iShares and Vanguard offer very competitive fees and attract plenty of trading volume. This ensures that you can enter and exit the market with ease.

However, if the broker only offers less common ETFs backed by smaller providers, liquidity could be an issue. Either way, you’ll want to check what ETFs are supported before choosing a broker. While you might only want to invest in a specific ETF right now, diversification might be required further down the line.

Brokerage Fees

Fees can quickly eat into your ETF profits if you’re investing through a high-cost broker.

We’ve broken down the main fees to be aware of when choosing the best ETF broker.

Commissions

Most ETF brokers offer commission-free access to the US markets. This means you can invest in the S&P 500, Dow Jones, and other popular index funds cost-effectively.

However, you’ll likely need to pay a commission when investing in international markets. This can vary depending on which exchange the ETF is listed. For example, expect higher commissions when investing in the emerging markets – such as South America or Asia.

At eToro, there are no trading commissions to pay on any supported ETF – including foreign markets.

Spreads

Commission-free brokers often make money from the spread – the difference between the bid and ask prices of the ETF. If the difference is too high, this means you’re buying and selling ETFs at unfavorable prices.

For example, suppose the bid (buy) price of an ETF is $10. The ask (sell) price is $11. This means that for every ETF share traded, you’re paying a $1 premium. Spreads are often dynamic, meaning they reflect broader market conditions.

Moreover, spreads are usually more competitive on highly liquid ETFs – such as those tracking the FTSE 100 or S&P 500.

Expense Ratio

ETF providers like iShares make money from the expense ratio. This covers all underlying charges, including their own commissions, spreads, and management fees.

Although expense ratios are not controlled by ETF brokers, they shouldn’t charge a markup. This isn’t always the case, so it’s worth checking.

Non-Trading Fees

Non-trading fees should also be considered when selecting an ETF broker. For instance, some brokers charge fees on deposits and/or withdrawals.

At Webull, investors pay $8 on bank wire deposits, although ACH is free. Investors should also consider foreign exchange fees when investing in foreign-listed ETFs.

Fractional Investments and Account Minimums

Unless you’re planning on investing large amounts, it’s worth using an ETF broker that offers fractional investments. This means that you can purchase a small fraction of one ETF share.

• For example, consider the Vanguard 500 Index Fund ETF (VOO) – which is one of the most popular ETFs tracking the S&P 500.
• This ETF currently trades at $377.32 per share.
• Like all supported ETFs, eToro has a minimum trade requirement of just $10 on VOO
• This means a $10 investment would get you 2.65% of one VOO share

Fractional investments also make it more affordable to create a diversified ETF portfolio. eToro isn’t the only ETF broker that offers fractional investments. This service is also available at Webull, Robinhood, Interactive Brokers, Trading212, and other leading brokers.

Some ETF brokers also have minimum account requirements. This means you’ll need to deposit a certain amount before you can start trading. Just make sure this aligns with your investment budget.

Research Tools

There are thousands of ETFs listed in the US alone, so knowing which investments to make can be challenging. The best ETF trading platforms offer research tools that can help clear the mist.

For example, eToro offers pricing charts with technical indicators and drawing tools. This will suit ETF investors focused on technical trends – such as 52-week highs and lows. eToro also offers financial news. Once you add an ETF to your watchlist or real portfolio, you can elect to receive news alerts as soon as they’re published.

Webull also offers useful research tools – including a fully-fledged ETF screener. This enables you to find ETFs based on your investing preferences.

Account Types

Some ETF brokers offer various account types. For example, if you’re looking to add ETFs to a retirement portfolio, look for a broker offering IRAs. Robinhood is a popular option for IRAs, as it offers a matching contribution of up to 3%. That said, this is reduced to 1% for those on standard accounts.

Alternatively, you might want to invest in ETFs via a margin account. Although many ETF brokers offer margin, you’ll need to check what financing fees apply. This is usually a certain percentage above the Federal Funds Rate.

Some people prefer investing through a standard investment account. This comes without thrills or tax advantages, but often provides access to a much wider range of ETFs.

Payment Methods

The best way to invest in ETFs is through dollar-cost averaging. Considering this requires regular deposits, it’s wise to check what payment methods are supported before selecting a broker.

We found that most ETF brokers support traditional bank transfers. Some – including eToro and AvaTrade, also support debit/credit cards and e-wallets.

eToro also offers recurring payments – allowing investors to deposit and invest a fixed amount. For instance, investing $200 at the end of each month directly into a Dow Jones ETF.

Mobile App

The best ETF brokers offer a user-friendly mobile app for Android and iOS. This enables you to keep tabs on your ETF investments no matter where you are located. Moreover, you’ll be able to buy and sell ETFs at the click of a button.

Make sure the mobile app offers full functionality and a solid user experience. A good way to gauge these metrics is by checking ratings and reviews on Google Play and the App Store.

Conclusion

In summary, we rank eToro as the overall best ETF broker for 2024. This user-friendly broker supports more than 400 ETFs from multiple markets and exchanges.

There are no trading commissions charged and fractional ETF investments of $10 are supported. eToro is also a safe ETF broker with licenses from many tier-one organizations.

76% of retail investor accounts lose money when trading CFDs with this provider.

References

• https://brokercheck.finra.org/firm/summary/298361
• https://www.sipc.org/for-investors/what-sipc-protects
• https://www.wsj.com/articles/robinhood-needs-to-steal-more-users-1c6877e8
• https://www.cnbc.com/2021/01/28/robinhood-interactive-brokers-restrict-trading-in-gamestop-s.html
• https://www.bloomberg.com/news/articles/2022-09-22/sec-poised-to-let-wall-street-keep-payment-for-order-flow-deals
• https://www.swift.com/your-needs/financial-crime-cyber-security/know-your-customer-kyc/kyc-process
• https://www.fscs.org.uk/media/press/2019/apr/higher-protection-limits/
• https://www.sipc.org/for-investors/introduction
• https://investor.vanguard.com/investment-products/etfs/profile/voo
• https://www.newyorkfed.org/markets/reference-rates/effr

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