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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, these are the best trading platforms for mutual funds in UAE:
Best Trading Platforms for Mutual Funds in UAE
- Interactive Brokers – The 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– Best for retirement mutual funds investing with Fidelity Simplicity RMD Funds.
| RANK | BROKER | PLATFORM SCORE | BEST FOR | WEBSITE |
|---|---|---|---|---|
| #1 | Interactive Brokers | 4,9/5 | The highest amount of funds available (over 45,000 worldwide mutual funds) | Official website |
| #2 | TD Ameritrade | 4,1/5 | Best for no-transaction-fee mutual funds (NTFs) | Official website |
| #3 | Ally Invest | 0,0/5 | Best for actively managed mutual fund investing | Official website |
| #4 | Charles Schwab | 4,1/5 | Best for tax-exempt mutual funds investing and high-net-worth individuals with over $250,000 to invest | Official website |
| #5 | Fidelity | 4,2/5 | Best for retirement mutual funds investing with Fidelity Simplicity RMD Funds | Official website |
Below we break down the best trading platforms in UAE for Mutual Funds, starting with the best rated – Interactive Brokers
01. Interactive Brokers
Min Deposit: 0 ($2000 for margin account)
Fees: 4.9
Assets available: 4.9
Total Fees:
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.
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.
Pros
- 45,000+ worldwide mutual funds available
- 17,000+ no-transaction-fee mutual funds
- Other funds available at low commissions and no custody
Cons
- Few deposit and withdrawal options
- Research and education materials missing
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.
Pros
- 13,000+ Mutual funds of which most are no-transaction-fee (NTF) funds
- Account opening from $1
- Offers forex, stocks, and bond trading
Cons
- Most mutual funds only for USA investors
- Account only fundable by traditional bank wire transfer
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.
Pros
- 12,000+ global mutual funds
- No minimum investment required
- Excellent 24/7 customer service
Cons
- Separate account needed to invest in other asset classes
- High fees
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.
Pros
- 4,200+ no-load, no-transaction-fee mutual funds
- No minimum investment required
- Easy onboarding process
Cons
- Extremely high fees
- Low amount of mutual funds compared to other brokers
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.
Pros
- Multiple mutual funds available
- 3,400+ no-transaction-fee mutual funds
- No minimum investment required
Cons
- High fees on non-free mutual funds
- Mostly USA mutual fun
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 funds 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 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.
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.
Disclaimer
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.