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.
Below we break down the best trading platforms in UAE for Mutual Funds, starting with the best rated – Interactive Brokers
01. Interactive Brokers
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.
|45,000+ worldwide mutual funds available||Complicated account opening|
|17,000+ no-transaction-fee mutual funds||Trading platform might be overwhelming for beginners|
|Other funds available at low commissions and no custody fees|
02. TD Ameritrade
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.
|13,000+ Mutual funds of which most are no-transaction-fee (NTF) funds||Most mutual funds only for USA investors|
|Account opening from $1||Account only fundable by traditional bank wire transfer|
|Offers forex, stocks, and bond trading|
03. Ally Invest
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.
|12,000+ global mutual funds||Separate account needed to invest in other asset classes|
|No minimum investment required||High fees|
|Excellent 24/7 customer service|
04. Charles Schwab
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.
|4,200+ no-load, no-transaction-fee mutual funds||Extremely high fees|
|No minimum investment required||Low amount of mutual funds compared to other brokers|
|Easy onboarding process|
05. Fidelity Investments
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.
|Multiple mutual funds available||High fees on non-free mutual funds|
|3,400+ no-transaction-fee mutual funds||Mostly 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.
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.