Choose correctly, and you’ll be in a great spot to pick from a wide variety of low-cost funds and make trades for free. Poor decisions will result in fewer investment options and higher fees.
An online broker is essentially the same thing as a traditional broker, except, you guessed it, you utilize them via the internet.
They offer a wide range of low-cost index funds and ETFs, and this year dropped their trade commission fee to better compete with some new fintech companies (like Robinhood).
While they don’t have the absolute lowest fees or sexiest online platform, they do have a long history of being a trusted broker for index investors.
They do offer funds with 0% expense ratios. That’s right, 0%! That is something that neither Schwab or Vanguard offers at this point.