Best ETF Brokers With The Lowest ETF Trading Fees in 2021

Top ETF brokers: the best online brokerage firms with the lowest ETF commissions. U.S. investment accounts with the lowest trading fees for ETFs.

WeBull rating


Webull ETF Commission

$0 per trade

Webull Advantages

Open Webull Account

$11-$2300 x 2 Free Stocks Give-away + $5 in Bitcoin.

Ally Invest rating

Ally Invest

Ally Invest ETF Commission

$0 per trade

Ally Invest Advantages

Open Ally Invest Account

Up to $3,000 cash bonus + $0 commission trades.

Best ETF Brokers

For investors who primarily trade exchange traded funds, there are several companies that offer the lowest broker commissions for ETFs trading. The attraction of ETFs is that one can select an exchange traded funds that represents a stock index such as the S&P 500, commodities such as gold, oil or sliver, and even a stock sector like biotech. It saves the investor from having to select a specific stock and minimizes the company risk associated with single stock investments. The ETF world has grown considerably, and there are now options that multiply returns (and losses) by 100-200%.

Since some traders like to use ETFs for shorter time frames, commissions are an important factor when selecting the best ETF broker. The lowest ETF commissions brokers are Webull and Ally Invest. An examination of these brokers’ commissions and services reveals a few differences to consider.


The commission at Webull is $0. This, combined with no account maintenance or inactivity fees, as well as easy to use trading tools makes this ultra-low-cost exchange traded funds brokerage company one of the best brokers for ETFs. One is limited in the areas of research and education, but that may be a low priority for ETF investors.

Ally Invest

Ally Invest’s ETF commission is $0 per trade. The broker doesn’t have account minimums as well as inactivity or maintenance fees. Ally Invest offers excellent trading tools, educational resources and customer service, so a trader does receive more value.

Best ETF Broker

Webull or Ally Invest?

As with most broker choices, exchange traded funds traders will have to make a selection based on the services rather than significant differences in commissions. Therefore, if you want the lowest ETF commissions then Ally Invest is your broker.

What are ETFs?

Exchange-traded funds (ETFs) are an attractive option for many investors. First introduced to the markets in 1993, ETFs combine the diversification benefits of mutual funds and the flexibility of individual stock ownership with lower fees and favorable tax treatment. These attributes have made ETFs a popular investment choice; currently, a few trillions dollars have been invested in ETFs worldwide. All top online brokerage firms offer ETFs with low fees and expenses.

Why have ETFs become so popular? The answer is rather straightforward – because an ETF is basically a mutual fund that trades like a stock. ETFs have many similarities with the traditional mutual funds familiar to most investors. As its name implies, ETFs typically focus on holding large “baskets” of stocks that are listed on a specific securities exchange such as the S&P 500. Individual investors purchase interests in ETFs from a large financial institution (ETF broker), which act as “middlemen” with the ETF. This ability to diversify is attractive to many investors because it mitigates the risks inherent in holding a smaller portfolio.

How Do ETFs Work?

The ETFs goal, much like a mutual fund, is to replicate the performance of the exchange or index. For example, one of the largest ETFs by market capitalization is Standard & Poor Deposit Receipts (SPDR). SPDR’s objective is to match the performance of the S&P 500 index for its investors.

In recent years, ETFs have evolved to include “exchanges” other than large market indexes. Today’s investor can participate in ETFs that hold commodities (such as gold, oil and agricultural products), bonds and even currencies.

How are ETFs, Stocks and Mutual Funds Different?

With all of these similarities, what makes ETFs different then mutual funds? The key difference between the two investment vehicles is the ability of the ETF investor to make trades throughout the day, while mutual funds generally allow purchase or sale transaction at the end of each business day for the net asset value of its shares. This factor presents a significant advantage for traders seeking to take advantage of intra-day fluctuations.

Essentially, ETFs allow the investor to deploy all of the strategies used with trading individual stock shares, while enjoying the benefits of diversification. Investors can use limit orders (contingent sell orders that are executed only when a defined price threshold is reached), short-selling (borrowing shares from a third party with the intent of returning them at a later date) and optioning (purchasing the right to buy a share in the future at a defined price). This combination of diversification and flexibility gives the investor the best of both worlds.

ETFs have other advantages over mutual funds as well. Because they are typically not actively managed, the fees and costs of ETF share ownership are generally lower than mutual funds; however, standard trading fees apply for executed transactions on the exchange. There are tax benefits as well – the potential capital gains tax liabilities that can be realized from ETF sales are greatly mitigated.

Niche ETFs

As mentioned above, in addition to the traditional “index” ETFs, there are an increasing number of actively managed “niche” ETFs that specialize in particular commodities or market areas. Commodities such as gold, tin, oil, natural gas and agricultural products are the most common and popular niche ETFs offered by the top online ETF brokers.

In 2021, the three largest niche ETFs specialized in gold, silver and natural gas. Other specialized ETFs are available for particular business areas such as health care, national markets and so on. ETFs can provide an attractive option for investors seeking the flexibility of stock trading and the safety of diversification, without the management fees and potential tax liabilities inherent in traditional mutual funds.

The popularity of ETFs in recent years had led to an explosion in available investment choices, from the traditional index-based ETF to specialized ETFs for particular sectors such as precious metals, energy and agricultural products. ETFs are poised to become even more prevalent as many institutions that offer employer-based 401(k) retirement plans now offer ETFs to plan participants. And, of course, all the best online ETF brokers in the United States offer all these exchange traded funds for trading.

As with any investment product, there are risks inherent in investing, as investors active in the market over the past ten years can attest. Nevertheless, the advantages of ETFs make it a smart move to consider them when building your investment portfolio.