Best Mutual Funds Trading Platforms in UAE

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Investing in mutual funds is a great idea for investors with limited knowledge and time, who want a professional to handle their investment. We recommend buying mutual funds directly from the fund company or through their proprietary trading platforms because of lower overall costs.

In this guide, we break down the best trading platforms for mutual funds in UAE. Our team of analytics has compared 83 online brokers offering mutual funds in UAE and weighted their overall performance in 4 different categories.

Considering our research, this are the best trading platforms for mutual funds in UAE:

Best Trading Platforms for Mutual Funds in UAE

  • Interactive Brokers – Highest amount of funds available (over 45,000 worldwide mutual funds).
  • TD Ameritrade – Best for no-transaction-fee mutual funds (NTFs).
  • Ally Invest – Best for actively managed mutual fund investing.
  • Charles Schwab – Best for tax-exempt mutual funds investing and high-net-worth individuals with over $250,000 to invest.
  • Fidelity Investments – Best for retirement mutual funds investing with Fidelity Simplicity RMD Funds.
RANKPLATFORMGENERALPLATFORM SCOREBEST FORWEBSITE
#1Interactive Brokers45,000+ available mutual funds4.9 / 5Amount of available fundsOfficial website
#2TD Ameritrade13,000+ no-transaction-fee mutual funds4.8 / 5No-transaction-fee mutual fundsOfficial website
#3Ally InvestProfessionally actively managed mutual funds4.9 / 5Actively managed mutual fundsOfficial website
#4Charles SchwabTax-exempt mutual funds investing4.8 / 5Tax-exempt mutual funds investing & High-net-worth individualsOfficial website
#5Fidelity InvestmentsFidelity Simplicity RMD Funds4.7 / 5Retirement mutual funds investingOfficial website

Below we break down the best trading platforms in UAE for Mutual Funds, starting with the best rated – Interactive Brokers

01. Interactive Brokers

interactive-brokers-logo

With Interactive Brokers you can invest in over 17,000 funds without paying transaction fees and 45,000 funds in total. In 2020 Interactive Brokers expanded its mutual fund trading platform to include no-load mutual funds. You can also invest in stocks, bonds, and other asset classes via Interactive Brokers. There is no minimum deposit required and the standard pricing for mutual funds is 3% of the purchase value.

ProsCons
45,000+ worldwide mutual funds availableComplicated account opening
17,000+ no-transaction-fee mutual fundsTrading platform might be overwhelming for beginners
Other funds available at low commissions and no custody fees

02. TD Ameritrade

td-amitrade-logo

With a TD Ameritrade account, you can invest in more than 13,700 mutual funds without paying any fees. TD Ameritrade provides detailed information about each fund so that you know exactly what you’re investing in and how it is performing. This data is provided by Morningstar and gets updated quarterly. TD Ameritrade also offers forex, stocks, and bond trading. You can start investing in both no-load and load mutual funds with TD Ameritrade from $1.  

ProsCons
13,000+ Mutual funds of which most are no-transaction-fee (NTF) fundsMost mutual funds only for USA investors
Account opening from $1Account only fundable by traditional bank wire transfer
Offers forex, stocks, and bond trading

03. Ally Invest

ally-invest-logo

Ally Invest offers its clients over 12,000 mutual funds to invest in. They charge a $9,95 commission on no-load mutual funds and you can buy sales load mutual funds from $0. Ally Invest has exceptional customer service and you can start investing in mutual funds from $1 with them. 

ProsCons
12,000+ global mutual fundsSeparate account needed to invest in other asset classes
No minimum investment requiredHigh fees
Excellent 24/7 customer service

04. Charles Schwab

charles-schwab-logo

Charles Schwab is a broker founded in the 1970s that offers over 4,200 no-load, no-transaction-fee mutual funds to invest in. On other mutual funds, they charge a $74,95 commission. There is no minimum deposit required to open a trading account with them and this can be easily done online. 

ProsCons
4,200+ no-load, no-transaction-fee mutual fundsExtremely high fees
No minimum investment requiredLow amount of mutual funds compared to other brokers
Easy onboarding process

05. Fidelity Investments

fidelity-logo

With Boston-based Fidelity Investments you can invest in four zero-fee funds: the Fidelity Zero Total Market Index Fund, Fidelity Zero International Index Fund, Fidelity Zero Large Cap Index Fund, and Fidelity Zero Extended Market Index Fund. There are over 3,400 no-transaction-fee mutual funds in total and you don’t need to pay any trading fees as long as you hold the funds for at least 60 days. Fidelity Investments doesn’t have a minimum deposit requirement and they charge $49,95 on standard mutual funds. 

ProsCons
Multiple mutual funds availableHigh fees on non-free mutual funds
3,400+ no-transaction-fee mutual fundsMostly USA mutual funds
No minimum investment required

What is a Mutual Fund?

A mutual fund is a large investment portfolio that is shared among its investors. Mutual funds spread their risks by investing in many companies. When investing in a mutual fund, you become the owner of a small share of the portfolio. Mutual fund’s share prices change when the shares or other assets of their portfolio increase or decrease. The Net Asset Value of a mutual fund is calculated daily after the markets close. You can only buy and sell mutual funds when the market is open. Operators charge management fees for their services. 

Actively and Passively Managed Mutual Funds

When you invest in a mutual fund, a professional fund manager manages your investment actively or passively. Actively managed funds try to trade stocks at the right moments. Passively managed funds invest in different index funds. Passively managed funds usually have lower fees than actively managed funds. Mutual funds charge early redemption fees if you sell quickly which incentivizes a passive approach. Other types of mutual fund further explained here.

Reasons to Invest in Mutual Funds

We recommend investing in mutual funds to diversify your portfolio, keep your overall fees on a low level and to get your investment budget a professional management. Mutual funds are often part of retirement plans because they achieve higher returns than the yearly inflation rate. They are also a great option to balance your exposure when investing in high volatile assets like cryptocurrencies and stocks.
If you want to trade on your own we recommend you to check our selection of trading platforms and apps for UAE users.

Conclusion

Based on our review, we consider Interactive Brokers as the best trading platform in UAE for mutual funds. They offer a great selection of different mutual funds, competitive fees and no minimum deposit.

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Stefan Grasic (Dipl.-Jur) is the World Wide Director of research for Buisness24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active Crypto, Forex and general investment researcher advising blockchain companies at their start up level. He keeps fit by mountain biking, surfing, skiing and lots of other adrenaline sports.