Best ETF Brokers in 2025

What is an ETF or Exchange Traded Fund?

An ETF (Exchange Traded Fund) is a financial product that allows you to invest in a basket of assets in a single transaction. It is an index fund listed on a stock exchange, the goal of which is to replicate the performance of a benchmark index, such as the S&P 500 or the MSCI World.

Unlike traditional actively managed funds, an ETF follows passive management: it replicates the composition of the index it tracks, with lower fees compared to active funds. It is continuously tradable on the markets, just like a stock, which allows investors to buy or sell their shares at any time during the trading day.

ETFs are very popular due to their numerous advantages:

• Immediate diversification: By buying an ETF, the investor positions themselves on several assets in a single transaction.
• Reduced fees: ETF management fees are generally much lower than those of traditional investment funds.
• Accessibility: It is possible to invest in ETFs with a modest amount, and some brokers offer fractional purchases.
• Transparency: The composition of ETFs is generally accessible in real-time, allowing investors to know exactly what they are investing in.

Advantages of ETFs

ETFs offer instant diversification: a single transaction allows you to invest in a basket of assets reflecting the composition of the tracked index. For example, an ETF tracking the S&P 500 allows access to the 500 largest companies in the United States, while an ETF based on the Nasdaq 100 gives exposure to the leading companies listed on the Nasdaq.

What is an ETF Broker?

An ETF broker is a financial platform that allows investors to buy and sell exchange-traded funds (ETFs). These brokers provide different ways to invest depending on your financial goals, risk tolerance, and strategy.

In the U.S., there are two main types of brokers when it comes to ETF investing:

• Traditional brokers that offer direct ETF investing through a taxable brokerage account or a retirement account like an IRA (Individual Retirement Account).
• CFD brokers that allow you to speculate on ETF price movements via Contracts for Difference (CFDs), without actually owning the underlying assets.

Your choice will depend on your investment profile:

• If you're aiming for long-term growth with a passive strategy, consider using a traditional broker like Fidelity, Schwab, or Vanguard that offers access to real ETFs through a taxable brokerage account or IRA.
• If you're an active trader looking to speculate with leverage and short-term opportunities, you might consider CFD brokers. Keep in mind, however, that CFDs are not legal or available in the U.S. for retail investors, but they may be accessible through offshore brokers—at significantly higher risk and without regulatory protections.

How to Choose an ETF Broker?

Choosing an ETF broker is an essential step for investing effectively in the stock market. Some brokers allow you to buy ETFs directly, while others offer ETF CFDs. Each type of platform caters to different investment strategies. Here are the criteria to consider to make the right choice.

1. ETF Accessibility

Not all brokers offer the same access to ETFs. It is important to check:

• Available ETFs: Some brokers offer a wide selection of physical ETFs, while others only offer CFD ETFs.
• Access to international ETFs: Some brokers allow you to invest in European and American ETFs, while others restrict their offer to certain geographic areas.
• Eligibility for tax-advantaged accounts: If you want to optimize your taxation, choose a broker offering ETFs compatible with tax-advantaged accounts.

2. Brokerage and Management Fees

Fees directly impact the profitability of your investment. Here are the main costs to compare:

• Order fees: commission applied to each purchase or sale of an ETF. Some stock brokers offer free orders, while CFD brokers often apply a spread (the difference between the buying and selling price).
• Management fees: levied annually by the ETF issuer (generally between 0.05% and 0.50%).
• Inactivity fees: some brokers charge a fee if no orders are placed over a given period, particularly CFD trading platforms.
• Conversion fees: for ETFs listed in foreign currencies, there may be exchange fees on transactions.

3. Platform Ergonomics and Tools

Whether you are a beginner or experienced investor, an intuitive and efficient platform is essential. Check for:

• The quality of research tools and filters to easily find ETFs.
• The existence of a mobile app to manage your investments in real time.
• The availability of advanced charts and technical indicators for active investors, especially for those trading CFDs.

4. Account Type and Taxation

The type of account your broker offers plays a key role in how your ETF gains are taxed in the U.S.

• Taxable brokerage account: Offers full access to all U.S. and international ETFs. Profits from ETF sales are subject to capital gains tax (typically 0%, 15%, or 20%, depending on income level). Dividends are also taxed—some qualify for lower qualified dividend rates.
• Retirement accounts (IRA, Roth IRA, 401(k)): Investing in ETFs through a retirement account offers significant tax advantages.
• In a Traditional IRA or 401(k), gains are tax-deferred and only taxed upon withdrawal.
• In a Roth IRA, qualified withdrawals are entirely tax-free, including ETF gains and dividends. These accounts do not restrict ETF eligibility based on origin or asset type.
• CFD trading platforms: CFDs are not permitted for U.S. retail traders due to regulatory restrictions. However, if you invest in similar leveraged products (like leveraged ETFs or futures ETFs), gains are taxed as short-term or long-term capital gains, depending on holding period.

5. Leverage and Risk Management

If you want to use leverage, only brokers offering ETF CFDs will allow you to amplify your positions (generally with a leverage of x2 to x5). However, the risk of loss is increased, as leverage can also multiply losses. Make sure your broker offers:

• Negative balance protection to avoid losing more than your initial capital.
• Stop-loss and take-profit orders to manage your positions effectively.

6. The Quality of Customer Service

Good customer service is essential, especially for active investors. Before opening an account, inquire about:

• Available contact methods (phone, online chat, email).
• Support availability (days and hours of operation).
• The quality of educational resources offered (guides, webinars, tutorials).

7. Security and Regulation

Investing safely begins with choosing a broker that’s properly regulated. In the U.S., brokers must be:

• Registered with the SEC (Securities and Exchange Commission)
• Members of FINRA (Financial Industry Regulatory Authority)
• Covered by SIPC (Securities Investor Protection Corporation), which protects up to $500,000 in securities (including $250,000 in cash) in the event of broker insolvency

You can verify your broker’s registration and history using FINRA’s BrokerCheck tool.

If you ever consider using an international broker, ensure they’re regulated by a reputable authority such as:

• FCA (UK)
• BaFin (Germany)
• ASIC (Australia)

Which ETF Broker is Best for a Beginner?

If you're just getting started with ETF investing, it's important to choose a broker that offers a user-friendly platform, low fees, and educational tools to help you build confidence.

Key features to look for in a beginner-friendly ETF broker:

• Intuitive and easy-to-navigate interface
• Low or zero trading commissions on ETF purchases
• Broad selection of low-cost index ETFs (e.g., from Vanguard, iShares, Schwab)
• Ability to invest via taxable brokerage accounts or retirement accounts (like Roth IRA or Traditional IRA)
• Responsive customer support available in English (and sometimes Spanish)
• Access to educational resources: tutorials, investment guides, simulators, webinars

What are the different types of ETFs available in the United States?

In the United States, investors have access to a wide range of ETFs allowing them to invest in different assets and strategies. Here is a summary table of the main types of ETFs, with their description and some popular examples among U.S. traders.

Are ETFs Eligible for a Retirement Savings Plan?

Yes, some ETFs are eligible for a retirement savings plan, but not all. For an ETF to be included in a retirement savings plan, it must meet specific criteria imposed by U.S. regulations.

What Conditions Must an ETF Meet to Be Eligible for a Retirement Savings Plan?

An ETF is eligible for a retirement savings plan if it meets these conditions:

• It is domiciled in the United States.
• It invests primarily (at least 75%) in stocks of United States companies.

ETFs that invest primarily outside of the United States (e.g., S&P 500, Nasdaq-100, MSCI World) are not eligible for certain tax-advantaged accounts unless they use synthetic replication that complies with the quotas for U.S. equities.

Here are some examples of ETFs eligible for such accounts: 

How to Invest in ETFs Online

Investing in ETFs online is a simple and accessible method for diversifying your stock portfolio. Here are the essential steps to start investing effectively.

1. Choosing a Suitable Broker

The first crucial choice is that of the broker that will allow you to buy ETFs. To do this, you need to compare several criteria:

• Brokerage fees: Prioritize platforms with reduced fees.
• ETF Offer: Ensure the broker offers a wide selection of ETFs (stocks, bonds, sector, thematic, etc.).
• Account Type: Check whether you want to invest via a taxable brokerage account for unrestricted access to global ETFs.
• Security and Regulation: Opt for a broker regulated by the SEC (United States) or other recognized authorities.

2. Open an Investment Account

Once you have chosen a broker, you need to open an account by providing some documents:

• Identification (driver's license or passport).
• Proof of address (utility bill, tax statement).
• Bank statement for deposits and withdrawals.

Account validation can take a few hours to a few days, depending on the broker.

3. Deposit funds into your account

Before you can buy ETFs, you need to fund your account by making a deposit. Depending on the broker, you can deposit funds via:

💳 Bank transfer (most common method).
💰 Credit/Debit card (faster but sometimes with fees).
📱 Electronic wallets (PayPal, Skrill, etc., depending on the platforms).

4. Selecting ETFs to Buy

It's important to choose ETFs that are suitable for your strategy. You can invest in:

• Index ETFs (MSCI World, S&P 500) for a passive and diversified approach.
• Sector ETFs (technology, healthcare, renewable energy) to target a trend.
• Bond ETFs for a more defensive allocation.
• Dividend ETFs to generate passive income.

5. Placing a Buy Order

Once you've chosen an ETF, you need to place a buy order. There are several types of orders:

• Market Order: Immediate purchase at the current price.
• Limit Order: Purchase only if the ETF reaches a defined price.
• Stop Order: Purchase triggered when the price exceeds a certain threshold.

6. Monitor and Adjust Your Portfolio

Investing in ETFs requires regular monitoring to ensure that your portfolio remains aligned with your objectives. To do this:

• Analyze Performance: Track the performance of your ETFs through your broker or tools like Google Finance.
• Rebalance Your Portfolio: Adjust your asset allocation if a sector becomes too dominant.
• Invest Regularly: Adopt a Dollar Cost Averaging (DCA) strategy by buying ETFs at regular intervals to smooth out the risk.

What Fees Are Charged by an ETF Broker?

Investing in ETFs incurs fees that can impact the profitability of your portfolio. These costs vary depending on the type of account, the target market, and the investment method. Here are the main fees to anticipate with concrete examples.

1. Brokerage Fees

Brokerage fees are applied to each order to buy or sell ETFs. They can be fixed (example: $1 per order) or proportional (example: 0.1% of the amount invested). Some brokers offer commission-free ETFs under certain conditions, such as a scheduled purchase or a limited order per month.

Example of ETF Brokerage Fees

Buying an ETF for $1,000 with a 0.5% fee → $5 fee.

Buying the same ETF with a broker offering one free trade per month → $0 fee.

2. ETF Management Fees

These fees are directly levied by the ETF issuer and slightly impact the fund's performance. They are expressed as an annual percentage of assets under management.

Example of ETF Management Fees

• A global ETF with a 0.40% management fee incurs an annual cost of $4 for every $1,000 invested.
• An S&P 500 ETF at 0.07% costs only $0.70 for every $1,000 invested over a year.

3. Currency Conversion Fees

If the ETF is listed in US dollars (USD) or British pounds (GBP) and the account is in US dollars, currency exchange fees apply to purchases and sales. These fees vary between 0.1% and 1% depending on the platform.

Example of Currency Conversion Fees

Buying a Nasdaq-100 ETF in dollars for $2,000, with a currency exchange fee of 0.5% → $10 fee.

4. Inactivity Fees

Some brokers charge fees if no orders are placed for several months. These fees are generally levied after 6 to 12 months of inactivity and may be fixed or proportional to the account balance.

Example of inactivity fees

• An account inactive for 1 year with a fee of $10 per month results in a cost of $120 over the year.

5. Withdrawal fees

Some platforms charge fees to withdraw funds to a bank account. These fees may be fixed (example: $5 per withdrawal) or proportional (example: 1% of the amount withdrawn).

Withdrawal Fee Example

A withdrawal of $500 with a fixed fee of $5 results in a cost of 1% of the amount withdrawn.

6. Spreads and Overnight Fees (for ETF CFDs)

If you trade ETF CFDs, you need to consider:

• The spread: the difference between the buying and selling price, which can be fixed or variable.
• Overnight fees: applied when you keep a leveraged position from one day to the next.

Example of ETF CFD Fees

• Purchasing a S&P 500 ETF CFD with a spread of 0.2% on a $1,000 position → $2 in fees.
• Holding the CFD for 5 days, with overnight fees of 0.01% per day → $0.50 in cumulative fees.

What are the ETF Investment Strategies?

ETFs offer numerous investment strategies tailored to different investor profiles. Depending on your objectives (growth, passive income, protection against volatility, etc.), some approaches will be more suitable than others.

Here is a summary table of the main ETF investment strategies:

What is the taxation for income from ETFs in the United States?

ETF income in the United States is subject to different tax rules depending on the type of account used (taxable brokerage account or tax-advantaged retirement account) and the type of earnings (capital gains vs. dividends).

1. Taxation of ETFs in a taxable brokerage account

When you invest in ETFs through a standard taxable brokerage account, you may be taxed on two types of income:

Example

• You sell an ETF after holding it for over a year and realize a $2,000 gain → taxed at 15%, you’ll owe $300 in taxes.
• You receive $500 in qualified dividends → taxed at 15% = $75 in taxes.

2. Taxation of ETFs in retirement accounts (Traditional IRA, Roth IRA, 401(k))

ETFs held in retirement accounts enjoy favorable tax treatment:

Example

• You earn $5,000 in ETF gains inside a Roth IRA and withdraw after age 59½ → you owe $0 in taxes.
• In a Traditional IRA, you defer tax on that $5,000 until withdrawal, where it's taxed as ordinary income.

3. Foreign ETFs and withholding taxes

If you invest in foreign ETFs, such as those listed in Ireland or that hold foreign stocks, dividends may be subject to foreign withholding taxes.

• For example, U.S. investors who receive dividends from foreign stocks via an ETF may see withholding rates of 15–30%, depending on the country and tax treaties.
• You may be able to claim a foreign tax credit on your U.S. tax return using Form 1116.

Example

An Ireland-domiciled ETF pays $1,000 in dividends with 15% withholding → $150 withheld abroad; you report $1,000 as income and may claim $150 as a foreign tax credit.

4. Taxation of leveraged ETFs and derivatives (e.g., CFDs or options)

While CFDs are not available to U.S. retail investors, U.S. investors do trade leveraged or inverse ETFs and ETF options.

Example

You trade a 3x leveraged ETF and realize $3,000 in short-term gains → taxed at your ordinary income rate (e.g., 24% = $720 tax bill).

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.