Best Online Brokers for No-Transaction Fee (NTF), No-Load Mutual Funds: Fidelity, Etrade, Charles Schwab, Scottrade, TD Ameritrade, and Vanguard.



TD Ameritrade rating

TD Ameritrade

TD Ameritrade NTF, No-load Mutual Funds


TD Ameritrade offers its clients 4,051 no transaction fee mutual funds, and 5,441 no load mutual funds.

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Trade free for 60 days + get up to $600.


Charles Schwab rating

Charles Schwab


Charles Schwab NTF, No-load Mutual Funds


Charles Schwab offers its customers 6,682 no transaction fee mutual funds, and 11,089 no load mutual funds.

No-transaction-fee funds and other funds offered through Charles Schwab and all other online brokerage firms have other fees and expenses that apply to a continued investment in the fund and are described in the fund prospectus.

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Merrill Edge rating

Merrill Edge


Merrill Edge NTF, No-load Mutual Funds


Merrill Edge offers its clients 4,709 no transaction fee mutual funds, and 5,155 no load mutual funds.

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Scottrade rating

Scottrade


Scottrade NTF, No-load Mutual Funds


Scottrade offers its clients 2,600+ no transaction fee mutual funds, and 16,000 no load mutual funds.

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Trade free for 60 days + get up to $600.




What are NTF Funds?


Go to this article which explains what are NTF mutual funds and how do they work. The article also explains No Load, Load, Front End, Back End, and Level Loaded mutual funds.


The NTF Fund Investor


Mutual funds can be a great investment for those who prefer a simplified way to participate in the stock or bond market without acquiring a lot of knowledge in investing area. Risk is managed within the fund, so as long as market direction remains constant then there may be a high return. However, the broad array of sectors and fund types available make selection a challenge, but using the various ratings or screening tools can help narrow down the choices.


Can I Buy NTF Funds Through TD Ameritrade, Charles Schwab, Merrill Edge, or Scottrade


Yes. The process of buying no transaction fee funds through Scottrade and other firms is the same as the process of buying no-load funds. The only difference is that you will not be charged a commission. Here is a screenshot that shows how to find NTF funds at Scottrade. Buying funds is actually pretty easy - just about anyone can do it.


Brokers for NTF Funds


It should also be mentioned that, at Scottrade, all “no transaction fee funds” are also “no-load” funds. However, some no-load funds can still have a transaction fee (charged when selling). Investors looking to save the most money can go straight to the NTF funds, as all funds in that category carry no load.


Should I Change My Broker?


Nothing in the securities industry is ever fixed in stone, and this rule certainly applies to brokers. They actually change in various ways quite often; so you may find yourself wanting to switch brokerage firms at some point in your trading journey.

One area where brokers often change is in their pricing schedules. Small changes frequently occur. More significant changes are implemented less regularly, but they’re still part of the industry.

For example, a recent price war among broker-dealers caused a major shakeup, with some firms like Schwab and Fidelity becoming ultra-low cost brokers virtually overnight. The two companies reduced their equity commissions to $4.95, and this change undoubtedly caused some traders to leave previous brokers for Schwab or Fidelity. Brokerage houses that used to be very cheap—places like OptionsHouse or Ally Invest—are no longer the least brokers. Some brokers that were low-cost before the price war, Capital One Investing for example, are actually more expensive than several firms now.

Another reason investors change brokers is technical offerings. Brokerage houses will come out with a new app or platform that traders want to try. Maybe your current brokerage firm hasn’t updated its app or other technologies in quite some time. Meanwhile, another firm has rolled out a new trading platform that has no account minimums. Or maybe a broker has changed its trading requirements for a certain platform. Ally Invest LIVE, for example, used to have an account balance requirement; but the broker changed its policy and now allows all traders to use it.

Brokers also change when they are bought by a rival firm, or when they merge with another. This is happening right now in several situations. Scottrade, for example, has been purchased by TD Ameritrade, and OptionsHouse was recently acquired by E*Trade. Ally Financial has bought Ally Invest. Some of these acquisitions will take time to complete. When they are finished, significant changes may occur, not the least of which could be in the pricing schedules. ShareBuilder’s schedule was modified, for example, when it was acquired by Capital One.

A change in a broker’s product offerings might be a good reason to leave one place for another. Sometimes the number of fund offerings can change. E*Trade used to offer only about 1,300 no-load, no-transaction-fee funds. Today, it provides more than 4,400. Obviously, that’s a pretty significant change, enough of a change to justify leaving one broker, such as Merrill Edge who doesn’t provide many funds, for E*Trade.

Another frequent reason people change brokers is poor customer service. Some companies simply don’t provide enough competent assistance to their clients. Understandably, traders quickly grow tired of the deficient service they receive and decide to go elsewhere. Although a company like Robinhood has an unbeatable commission schedule, its customer service doesn’t quite measure up to TD Ameritrade’s. Investors who need satisfactory customer support would be wise to make the switch.


Updated on 10/19/2017.




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