You can buy ETFs through a brokerage account at banks, investment firms, or online brokers

An ETF (exchange-traded fund) trades like a stock on a public exchange, so you need a brokerage account to purchase one. The account itself is separate from where your money sits — you open the account at a broker, fund it with cash, and then use that broker's platform to place buy orders. Most brokers charge no commission to buy or sell ETFs, though some still do, and the cost of the ETF itself (its expense ratio) is built into the share price you pay.

The broker you choose determines what ETFs you can see, how much it costs to trade, what research tools you get, and whether you can set up automatic purchases. Some brokers specialize in low-cost index investing; others cater to active traders. The choice matters less than opening an account and starting, because you can move holdings later if you want to switch brokers.

Key Takeaways

  • You must open a brokerage account before you can buy any ETF, and the account is free to open at most brokers.
  • Online brokers like Fidelity, Schwab, and Vanguard charge zero commission on ETF trades and have low account minimums or none at all.
  • Banks and financial advisors can sell you ETFs, but often charge higher fees or require larger account balances than online brokers do.
  • Your choice of broker affects what ETFs are available to you, how much research you see, and what tools you have to track your holdings.
  • You can move your ETFs to a different broker later without selling them, though the process takes one to two weeks.

Online brokers with no commission and low minimums

The fastest and cheapest route for most people is an online brokerage. Firms like Fidelity, Charles Schwab, Vanguard, E*TRADE, and TD Ameritrade let you open an account online in minutes, fund it by bank transfer, and start buying ETFs the same day. None of them charge a commission per trade, and most have no account minimum — you can open an account with $1 and buy a single share of an ETF if you want.

These brokers differ in the number of ETFs they offer, the quality of their research tools, and the ease of their mobile apps. Vanguard and Fidelity tend to emphasize low-cost index ETFs; E*TRADE and TD Ameritrade offer more research for active traders. All of them provide educational content and customer support by phone. If you are unsure which one to use, Fidelity and Schwab are good starting points because they have large ETF selections, strong mobile apps, and no hidden fees.

Banks and financial advisors

You can buy ETFs through your bank's brokerage arm or through a financial advisor, but this route usually costs more. Banks often charge per-trade commissions (typically $5 to $10 per ETF purchase), require higher account minimums, and may steer you toward their own branded funds rather than the lowest-cost options. Financial advisors who manage your account charge an annual fee based on how much money you have with them, usually 0.5% to 1.5% per year.

This path makes sense if you want someone to help you choose which ETFs to buy and you are comfortable paying for that guidance. It does not make sense if you want to buy a single ETF or a small portfolio on your own — the fees will eat into your returns. If your bank offers commission-free ETF trading, that is competitive with online brokers, but check the list of available ETFs first, because banks often limit your choices.

Robo-advisors and automated investing platforms

A robo-advisor is a service that builds and manages an ETF portfolio for you automatically. Firms like Betterment, Wealthfront, and M1 Finance ask you a few questions about your goals and risk tolerance, then buy a mix of ETFs on your behalf and rebalance them over time. You do not pick individual ETFs — the platform does. Robo-advisors charge a management fee (usually 0.25% to 0.50% per year) on top of the ETF expense ratios.

This is useful if you want a hands-off approach and do not want to research which ETFs to buy. The downside is that you pay more in fees than you would buying ETFs directly through an online broker, and you have less control over exactly which funds are in your portfolio. Some robo-advisors have low or no account minimums, while others require $500 or $1,000 to start.

How to open an account and place your first trade

Opening an account at an online broker takes 10 to 15 minutes. You will need your Social Security number, a government ID, your address, and your employment information. The broker will ask you to choose an account type — most people start with a taxable brokerage account if they are saving outside of retirement, or an IRA if they are saving for retirement. Once your account is approved (usually within one business day), you can link a bank account and transfer money.

After your cash arrives (typically one to three business days), you can search for an ETF by its ticker symbol (a four- or five-letter code like SPY or VOO), see its current price, and place a buy order. You can buy a whole share or a fractional share — most brokers now let you buy $50 worth of an ETF even if one share costs $200. The order executes during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), and the ETF appears in your account immediately after.

Comparing costs across brokers

The main costs to compare are commission per trade, account minimums, and the expense ratios of the ETFs themselves. Commission is now zero at most online brokers, so that is rarely a deciding factor. Account minimums vary: Fidelity, Schwab, and Vanguard have none; some robo-advisors require $500 or $1,000. The expense ratio is set by the ETF issuer, not the broker, so it is the same no matter where you buy — a Vanguard S&P 500 ETF costs the same at Fidelity as it does at Schwab.

Some brokers charge fees for other services: wire transfers, account transfers to another broker, or inactivity. Read the fee schedule on the broker's website before you open an account. If you plan to move your account later, ask whether the broker charges an outgoing transfer fee (many do not anymore, but some still charge $50 to $100).

Moving your ETFs to a different broker

If you open an account at one broker and later want to switch, you can move your ETFs without selling them. This is called an ACAT transfer (Automated Customer Account Transfer). You initiate the transfer at your new broker, provide your old account number, and the new broker handles the rest. The process takes five to ten business days, and your account will be frozen during the transfer — you cannot buy or sell during this time.

Some brokers charge an outgoing transfer fee ($0 to $100), so check before you move. If you have only a small amount of money, the fee might not be worth it, and you could simply sell your ETFs, move the cash, and buy them again at the new broker. For larger accounts, an ACAT transfer is cleaner because you avoid selling and buying, which can trigger taxes if you have gains.

Frequently Asked Questions

Do I need a lot of money to start buying ETFs?

No. Most online brokers have no account minimum, and most now let you buy fractional shares, so you can start with $10 or $50. The only limit is the price of the ETF itself — if a share costs $100 and you have $50, you can buy half a share.

What is the difference between buying an ETF at a bank versus an online broker?

Banks often charge per-trade commissions and have higher minimums, while online brokers charge zero commission and have no minimums. Banks may also limit which ETFs you can buy. Online brokers are cheaper for most people, especially those starting small.

Can I set up automatic purchases of an ETF?

Yes. Most online brokers let you schedule recurring purchases — for example, $500 every month into a specific ETF. This is called dollar-cost averaging and is a common way to build a portfolio over time without trying to time the market.

What happens if my broker goes out of business?

Your ETFs are protected by SIPC (Securities Investor Protection Corporation), which covers up to $500,000 per account if a broker fails. Your ETFs are held in your name, not the broker's, so they belong to you regardless of what happens to the firm.

Can I buy ETFs in a retirement account like an IRA?

Yes. You can hold ETFs in a traditional IRA, Roth IRA, or SEP IRA. The rules about how much you can contribute and when you can withdraw apply to the account, not to the ETF itself. Most brokers let you open an IRA and buy ETFs in it the same way you would in a taxable account.