Sorting out the various mutual fund commissions and fees is a bit more complicated than comparing stock and options trading commissions. To start with, many brokers offer a selection of No Transaction Fee (NTF) funds. They may also offer separate Transaction Fee (TF) funds.
In addition, there are two types of mutual funds: Load and No Load. Load funds charge a fee for transactions, which are assessed either at the time of purchase (front loaded funds) or sale (back loaded funds). These fees are typically between 4 and 8% of the investment amount. Check the fund's prospectus for the appropriate fee. No load funds are simply funds that do not have these fees.
This means that we have four possible commission structures:
- No Transaction FEE (NTF) No Load
- No Transaction Fee (NTF) Load
- Transaction Fee (TF) No Load
- Transaction Fee (TF) Load
Keep in mind that mutual funds also typically charge management and expense fees. Check the fund's prospectus for the appropriate fees.
Click on the broker name links to go to each broker's commissions and fees page. Other aspects of mutual fund investment, including short term redemption fees and minimum investment amounts are shown in the Additional Notes column.
Broker | NTF No Load | NTF Load | TF No Load | TF Load | Additional Notes |
| E*TRADE | Yes | Yes | $19.99 | No | Short term redemption fee of $49.99 for NTF no load funds held less than 90 days. Excludes Direxion, ProFunds and Rydex mutual funds. Minimum investment determined by the fund company |
| eOption | No | No | $14.95 | $14.95 | Periodic investment withdrawal fee of $5 Short term redemption fees and minimum investments are determined by the fund company |
| Fidelity | Yes | Yes | No | No | Short term redemption fee of $75 for NTF no load funds held less than 180 days. Exceptions apply. Once 15 short term (held less than 180 days) trades are executed for NTF no load funds in a 12 month period, Fidelity will charge a transaction fee for each purchase. Exceptions apply. Minimum investment determined by the fund company |
| Firstrade | Yes | Yes | $9.95 | No | Short term redemption fee of $19.95 for all funds held less than 90 days. Minimum initial investment of $500. Minimum additional investments of $100. Redemptions of less than $500 will incur a fee of $19.95, unless the entire value of that fund is less than $500. |
| Interactive Brokers | No | No | $14.95 | No | Minimum initial investment of $3,000. Minimum additional investments of $1,000 Short term redemption fee is determined by the fund company |
| Merrill Edge | Yes | Yes | No | No | Short term redemption fee of 0.75% gross proceeds ($50 minimum, $250 maximum) for funds held less than 90 days Minimum investment determined by the fund company |
| OptionsHouse | No | No | $9.95 | $9.95 | Short term redemption fees and minimum investments are determined by the fund company |
| optionsXpress | No | No | $9.95 | $9.95 | Short term redemption fees and minimum investments are determined by the fund company |
| Schwab | Yes | Yes | $49.95 | $49.95 | Short term redemption fee of $49.95 for NTF no load funds held less than 90 days. Exceptions apply. Minimum investment determined by the fund company |
| Scottrade | Yes | No | $17 | $0 buy $17 sell | Short term redemption fee of $17 for NTF no load funds and $2 for TF no load funds held less than 90 days. Exceptions include Rydex, ProFunds and Direxion funds. Minimum fund purchase size is $100 or the fund's minimum initial investment |
| ShareBuilder | Yes | Yes | $19.95 | $19.95 | Short term redemption fee of $49.95 for NTF no load funds held less than 90 days. Excludes the ING Money Market Fund. Minimum investment determined by the fund company |
| SogoTrade | No | No | No | No | SogoTrade does not offer mutual fund investing |
| TD Ameritrade | Yes | Yes | $49.99 | No | Short term redemption fee of $49.99 for NTF no load funds held less than 180 days. Exceptions include ProFunds and Rydex funds. Minimum investment determined by the fund company |
| thinkorswim | Yes | Yes | $15 | $15 | The first three mutual fund trades per calendar month are free - after that all trades are $15 Short term redemption fees and minimum investments are determined by the fund company |
| TradeKing | No | Yes | $14.95 | No | Short term redemption fees and minimum investments are determined by the fund company |
| Vanguard | Yes | Yes | $8-35 | No | Short term redemption fee of 1% gross proceeds ($50 minimum, $250 maximum) for NTF no load funds held less than 90 days Minimum initial investment of $3,000 for NTF funds in non-retirement accounts and $1,000 for IRAs and TF funds |
| WellsTrade | Yes | Yes | $0-35 | No | Systemic Mutual Fund Purchase or Withdrawal Plan investment minimum is $100 or fund company minimum if greater Short term redemption fees and minimum investments are determined by the fund company |
| Zecco | No | No | $10 | $10 | Short term redemption fees and minimum investments are determined by the fund company |
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