4 Best Brokers for Index Funds in August 2026

You can own a piece of every major U.S. company for less than the cost of lunch. That’s the magic of index funds, and it’s why they anchor my personal portfolio. For buying them in 2026, the top brokers are Fidelity, Charles Schwab, SoFi®, and Vanguard.

Each of these brokers keeps fees low and makes it simple to buy a huge range of index funds. The S&P 500’s average annual return since 1928 is about 9.98%, including dividends, according to Motley Fool research. These brokers are the easiest way to grab a share of that.

1. Fidelity: index funds with a 0% expense ratio

Fidelity is my top pick and the broker I’d recommend to people who are just starting out. I manage a stack of accounts with Fidelity, and have been buying index funds for over a decade.

Fidelity has a few ZERO index funds that charge a 0% expense ratio, with no minimum. But even if you want an index fund from a different manager, there are no trading fees or commissions on ETFs.

Fidelity also won Best Stock Broker for ETFs in Motley Fool Money’s 2026 awards, so index ETFs are just as easy to buy.

2. Charles Schwab: built for index funds inside your IRA

Charles Schwab won Best Stock Broker for IRA Investors in Motley Fool Money’s 2026 awards. And that’s why I mostly recommend people open IRAs on this platform.

My wife keeps her Roth IRA there, along with a regular brokerage account. Schwab has a deep menu of low-cost index funds that cover the total market, the S&P 500, international stocks, and way more.

Schwab also has a few new customer promotions to check out, for both new customers as well as transferring portfolios from other brokers.

3. SoFi Active Investing: buying index funds from your cellphone

SoFi Active Investing is a great place to start if you’re completely new to investing. SoFi® won Best Stock Broker for Beginners in Motley Fool Money’s 2026 awards. It has no monthly account fees, no commissions on trades, and a clean app that can also handle your everyday banking. See terms.

New SoFi® members also get a free 30-minute session with a financial planner, which can help point a first-timer in the right direction.

4. Vanguard: the birthplace of the index fund

Vanguard index funds are arguably the most popular to buy. Founder John Bogle created the first index fund in 1975 and became known as the “father of index funds” before his death in 2019. If you plan to buy Vanguard’s own funds, buying them straight from the source is hard to beat.

Personally, I find the interface a touch old-school and clunky. But honestly, if you’re a buy-and-hold investor, this barely matters. You won’t be inside the portal much once everything is on autopilot.

My 3 favorite index funds to buy

There are thousands of index funds to choose from. But I’ve grown a huge portfolio mostly with three main funds. My recommendation to most investors is to keep it as simple as possible.

Here are the three I love:

• VTI (Vanguard Total Stock Market ETF) owns the entire U.S. stock market in one ticker.
• VOO (Vanguard S&P 500 ETF) tracks the 500 largest U.S. companies, the classic core holding.
• VXUS (Vanguard Total International Stock ETF) covers developed and emerging markets outside the U.S.

The majority of my portfolio is spread across these funds. I am a buy-and-hold investor, with 20+ years before I will be thinking about retirement. My strategy is to set-and-forget it, and let compound interest do most of the work.

The best broker is the one that gets you buying index funds this month, not next year. Any of these four will do the job well. Compare your options with our guide to the best stock brokers, then open an account and put your first dollars to work.