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Can you trade Mutual Funds on Robinhood? Alternatives in 2024

Mariana Vilaça| Updated January 23rd, 2024

Robinhood is a modern and user-friendly investment app from the US, founded in 2013. It has introduced the concept of commission-free trading in financial products such as stocks and ETFs, competing with its major rivals like Webull, E*TRADE, and TD Ameritrade.

Its 10+ million monthly active users can choose between investing in stocks, options, ETFs, and cryptocurrencies, all without trading fees. One drawback of Robinhood is the limited availability of investment options – including mutual funds – compared to its competitors, E*TRADE and TD Ameritrade.

Want to know if you can trade mutual funds on Robinhood? Wondering about alternative investment platforms to invest in mutual funds? We’ve got you covered!

Can you trade Mutual Funds on Robinhood?

Unfortunately, you are not able to trade mutual funds on Robinhood! As of this writing, Robinhood doesn’t offer mutual funds trading.

It’s possible that Robinhood’s decision not to offer mutual funds aligns with its business strategy and its focus on delivering a straightforward, commission-free trading experience. 

If you’re considering mutual funds, you may want to explore other brokerages or financial institutions that could provide them.

robinhood mutual funds

Source: Robinhood

Which Products Can I Trade on Robinhood?

Investment Option Availability
Mutual Funds

Best alternatives for investing in Mutual Funds

Can you trade Mutual Funds on Robinhood? Alternatives in 2024 1

#1 Best mutual funds broker overall

Min. deposit of $/€0
+48,000 mutual funds
Excellent reputation (founded in 1978)
View BrokerCan you trade Mutual Funds on Robinhood? Alternatives in 2024 2Read review
Interactive Brokers summary
Founded in 1978, IBKR is one of the world’s most trustworthy brokers. It offers an enormous range of financial products, including mutual funds. Also, it provides no custody fees and low, transparent commissions for over 48,000 funds worldwide from over 550 fund families.
Supported countriesWorldwide (exceptions apply)Fractional sharesYes
RegulatorsFINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS and MNB.Interest on uninvested cashEUR: 3.467%; USD: 4.83%; GBP: 4.75% (as of January 2024)
Products and MarketsStocks, ETFs, Options, Futures, Forex, Commodities, Bonds and Funds.
Can you trade Mutual Funds on Robinhood? Alternatives in 2024 3

#2 Best educational tools

Min. deposit of $/€0
+10,000 mutual funds
Great research and educational resources
View BrokerCan you trade Mutual Funds on Robinhood? Alternatives in 2024 2
Fidelity summary
Founded in 1946, Fidelity is a renowned brokerage firm with a strong reputation for trustworthiness. It offers a vast array of financial products, such as more than 10,000 global mutual funds (from Fidelity & other companies), stocks, bonds, and more.
Supported countriesUS, UK, Canada and othersFractional sharesYes
RegulatorsSEC and FINRAInterest on uninvested cashUSD: Up to 4.75%
Products and MarketsStocks, ETFs, Options, Mutual Funds, Crypto and Bonds
Can you trade Mutual Funds on Robinhood? Alternatives in 2024 5

#3 Best broker for advanced trading platforms

Excellent desktop trading platform
+13,000 mutual funds
Great customer support
View BrokerCan you trade Mutual Funds on Robinhood? Alternatives in 2024 2
TD Ameritrade summary
TD Ameritrade provides a diverse range of 13,000+ mutual funds from leading fund families, covering various investment goals and risk profiles. They offer tools and resources to help you select the right funds for your objectives, including cost-effective no-transaction-fee (NTF) options.
Supported countriesUS, India, China, among othersFractional sharesNo
RegulatorsSEC and FINRAInterest on uninvested cash0.35%
Products and MarketsStocks, ETFs, Options, Mutual Funds, Futures, Forex, Cryptocurrencies, Bonds and access to IPOs
Can you trade Mutual Funds on Robinhood? Alternatives in 2024 7

#4 Best for beginners

User-friendly tools
+6,000 mutual funds
No commissions on mutual funds (and in other instruments)
View BrokerCan you trade Mutual Funds on Robinhood? Alternatives in 2024 2
E*TRADE summary
E*TRADE is a well-known US broker, considered both reputable and beginner-friendly. They offer a wide range of financial products, including +6,000 mutual funds. In E*TRADE you can invest in mutual funds without paying sales loads, transaction fees, or commissions.
Supported countriesWorldwideFractional sharesYes
RegulatorsSEC and FINRAInterest on uninvested cashUSD: 0.15%
Products and MarketsStocks, ETFs, Options, Futures, Mutual Funds, Bonds, Retirment Plans, Managed Portfolios and Small business accounts
Can you trade Mutual Funds on Robinhood? Alternatives in 2024 9

#5 Best for Advanced traders

Four trading platforms with no minimum or fees
+17,000 mutual funds
Extensive research
View BrokerCan you trade Mutual Funds on Robinhood? Alternatives in 2024 2
Charles Schwab summary
Charles Schwab is a well-established financial services company that provides a wide range of investment and brokerage services. They offer a user-friendly platform that allows you to trade 17,000 mutual funds from more than 600 fund families
Supported countriesAustralia, Germany, Spain, UK, US and othersFractional sharesYes
RegulatorsSEC and FINRAInterest on uninvested cashUSD: UP to 5.09%
Products and MarketsStocks, ETFs, Index Funds, Mutual Funds, Options, Bonds and Money Market Funds
ally logo

#6 Best for Active traders

Min. deposit of $0
+17,000 funds available
Strong web-based platform
View BrokerCan you trade Mutual Funds on Robinhood? Alternatives in 2024 2
Ally Invest summary
Ally Invest is an online brokerage platform known for its user-friendly interface and competitive pricing. It offers a range of investment options alongside more than 17,000 mutual funds for you to choose to invest.
Supported countriesUSFractional sharesNo
RegulatorsSECInterest on uninvested cashUSD: 4.25%
Products and MarketsStocks, ETFs, Bonds, Options, Mutual Funds, Forex, Robo Portfolios

Brokers’ comparison table

Broker Minimum Deposit Supported Mutual Funds Available in the US? US Mutual Funds Fees
Interactive Brokers $0 Alternatives, Balanced, Bond, Commodity, Equity, Mixed Investments, Money Market and Stock Yes Lesser of 3% Trade Value or USD 14.95 per Transaction ( min. size on first order is $3,000 – $100 after it).
Fidelity $0 Domestic Equity, International Equity, Sectors, Fixed Income, Asset Allocation, Index, Money Market Yes $0 and no minimums to invest (in fidelity mutual funds)
TD Ameritrade $50 (electronic transfers); no account minimum Money Market Funds1 Yes In No-load Up to $49.95 or $74.95 ( funds from certain fund families) for buys;$0 for sells
E*TRADE $0 Alternatives, Balanced, Commodity, Domestic Equity, Life cycle, Money Market, Municipal Bond, Municipal State Bond, Non-traditional Equity, Specialty, Taxable Bond Yes For load funds depends on the fund. For No-load, it is $0.
Charles Schwab $0 Index, Active Equity, Bonds, Asset Allocation Yes Up to $74.95 and $0 in Charles Schwab
Ally Invest $0 for Self-Directed brokerage cash account; $2,000 for Self-Directed brokerage margin accounts. Bonds, stocks and other types of securities Yes Subject to charges from mutual fund

What Makes a Good Broker for Mutual Funds?

  • Diverse Fund Selection: This factor emphasises the importance of having access to a broad range of mutual funds. Diversification is a key principle in investing, and having a diverse selection of funds means you can spread your investments across different asset classes, industries, and strategies. This reduces the risk associated with having all your investments concentrated in a single fund.
  • Low Costs: Low costs refer to transaction fees and expense ratios. Transaction fees are charges imposed when you buy or sell mutual fund shares, and high fees can eat into your returns over time. Expense ratios are ongoing fees deducted from the fund’s assets to cover management and operational expenses. Lower costs mean more of your money stays invested and can potentially grow over time.
  • User-Friendly Platform: A user-friendly platform is crucial for your ease of use and navigation. A good platform should make it simple to research mutual funds, analyse their performance, and make investment decisions. Whether you’re an experienced investor or a beginner, a user-friendly interface streamlines the investing process and helps you make informed choices.
  • Regulatory compliance: It’s essential to select a broker that adheres to relevant regulations and is overseen by recognised regulatory bodies in the country where they operate. For instance, this would include being regulated by the Securities and Exchange Commission (SEC) in the United States. In the United Kingdom, brokers should adhere to the Financial Conduct Authority (FCA), and in Canada, the regulator is the Mutual Fund Dealers Association of Canada (MFDA). By choosing a broker regulated by reputable global regulatory bodies, you ensure that your mutual fund investments are protected and held to high standards of integrity and transparency.

These factors are essential when selecting a broker for mutual fund investments because they directly impact your ability to build a diversified, cost-effective, and secure investment portfolio while maintaining a smooth and user-friendly experience.

Bottom Line

Robinhood does not offer the option for mutual fund trading. For those interested in mutual funds, we recommend considering alternative brokerages such as Interactive Brokers, Fidelity, Charles Schwab, TD Ameritrade, E*TRADE and Ally Invest, which provide a wide array of mutual fund options and extensive tools for informed investment decisions.

Evaluate aspects like regulatory compliance, the quality of the trading platform, fees and the diversification of the available funds. Remember that each broker comes with its unique advantages and disadvantages, so making a selection aligned with your specific investment requirements is paramount.

Hopefully, we have helped you with your choice!

1Since TD Ameritrade was acquired by Charles Schwab, you can invest in other categories of mutual funds through a Schwab account.

Mariana Vilaça
Fintech Analyst

Mariana is currently a finalist in Management program at the University of Minho, and she also serves as a digital ambassador for a leading Big4 company in the field of financial consulting, Ernst & Young.

Mariana's primary areas of interest revolve around the exact sciences, numbers, and the financial sector. Presently, Mariana holds the position of COO at a junior initiative within her university, dedicated to promoting financial literacy among the youth and addressing the educational challenges faced in Portugal.