3 Best Brokers for Investing in the S&P 500
I have over $1 million invested in index funds, and the S&P 500 is the heart of it. It’s how I’ve built most of my wealth, and it’s where I’d recommend almost any new investor start first. For buying the S&P 500, my three favorite brokers are Fidelity, Charles Schwab, and SoFi®.
All three charge no commissions and no monthly fees, and each gives you a cheap way to own index funds. The S&P 500’s long-run average return is 9.98% a year since 1928, including dividends, according to Motley Fool Money research. That kind of track record makes it easy to stay invested.
Here are my top broker picks for S&P 500 investing in July 2026.
1. Fidelity: a huge lineup of low-cost index funds
Fidelity is my top pick for S&P 500 investing, and it’s one of two brokers I’ve used for over a decade. Its Fidelity 500 Index Fund tracks the S&P 500 for a 0.015% expense ratio. That’s about $1.50 a year for every $10,000 you invest. Fidelity charges no commissions on stocks and ETFs, and there’s no account minimum.
Why I like it: Fidelity has a massive range of account types to choose from, so it can grow with you over time. When I first started I just had 401(k) with Fidelity — but that’s grown to Roth and traditional IRAs, brokerage accounts, and even custodial investment accounts for my kids. Fidelity is a low-cost broker that fits almost any investor stage of life. The app and website are clean, and help is easy to reach.
Who it’s best for: Fidelity is best for investors who want the widest range of cheap index funds in one place. It fits brand-new investors and lifelong buy-and-hold investors equally well. If you plan to own an S&P 500 fund for decades, this is my long-time home base.
2. Charles Schwab: S&P 500 investing with strong research
Charles Schwab is the other broker I use personally, and it’s a great home for index investors. The Schwab S&P 500 Index Fund tracks the index for a 0.02% expense ratio, or about $2 a year per $10,000 balance. Schwab charges no commissions on stocks and ETFs and has no account minimum.
Why I like it: Schwab has some of the best research and tools in the business. It acquired TD Ameritrade a few years ago, and continues to grow its tools for investors who want a little more hands-on experience. Schwab also runs new-account promotions worth a look before you sign up.
Who it’s best for: Charles Schwab is best for investors who want low costs plus deeper research and planning tools. It suits people who like to dig into their investments, not just set and forget.
3. SoFi®: an approachable way for beginners to start
SoFi® is my pick for brand-new investors who want a modern, intuitive app. You can buy S&P 500 ETFs like VOO at no commission cost, and fractional shares let you start with just $5. SoFi® has no account minimum and no trading commissions on stocks and ETFs. Terms apply.
Why I like it: SoFi® has an extremely intuitive and user-friendly app — which is perfect for beginners. This removes any intimidation from investing or getting confused over the basics. SoFi® is also committed to offering low-cost investing, with minimal fees for users. If I were starting from scratch today, SoFi® is probably where I’d go for the cleaner app and modern feel.
Who it’s best for: SoFi® is a strong fit for beginners who want a friendly app and don’t need advanced tools. It fits people starting small, automating contributions, and keeping things simple. For owning the S&P 500 it does the job well.
How to start investing in the S&P 500
Getting started is easier than you’d think. The hardest part is just opening an account (which actually isn’t that hard at all). Once it’s open, transfer in a small amount of money and buy a fund that tracks the S&P 500. That’s really all it takes.
From there, growing wealth over time takes consistent contributions. My best recommendation is to automate your investments by transferring in a little bit each and every month. Only invest money you already have, and let the index do the heavy lifting over time.
I’ve kept my own investing boring for years, and boring has worked. If you want to compare a few more options first, take a look at our roundup of the best online stock brokers. The hardest part is just starting, so open that account today.