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This guide helps users to find the best trading platforms in UAE for mutual funds. Investing in mutual funds is popular among UAE investors who want a professional to handle their investment. With the wide range of online brokers (reliable and scams) that offer investing in mutual funds in UAE, it can be challenging for users to choose the ideal provider for their needs.
Proper research, comparison, and background analysis on brokers can help investors avoid selecting a platform with high fees, limited assets, lack of regulation, and poor customer support.
This guide assesses 58 online brokers in UAE for users to review and choose the optimal platform for their needs. To help them make an informed decision, a list of the best mutual funds trading platforms in UAE is shared below, followed by detailed reviews and comparisons.
Best Trading Platforms in UAE for Mutual Funds
- 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.
Top 5 Online Brokers in UAE For Mutual Funds Reviewed
Online brokers in UAE with the highest rated platforms for mutual funds are reviewed below.
01. Interactive Brokers
Min Deposit: $0
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
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.
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
Tips To Find The Ideal Brokers and Platform For Investing In Mutual Funds in UAE
The most important criteria for finding an online broker with the ideal platform for mutual funds in UAE are listed below.
- Range Of World Wide Mutual Funds
- Trading Fees and Other Trading Costs – the cost of investing in mutual funds including management fees and transaction fees
- Minimum Investment Requirements – the minimum amount that can be invested
- Trading Platform Features – features related to investing in funds, such as research and analysis tools
- Customer Support – available channels, times, and languages spoken, including email, phone, live chat in English and Arabic.
- Deposit and Withdrawal Methods – the broker has to accept a wide range of payment methods to allow for easy deposits and withdrawals.
- UAE Availability – UAE residents must be able to sign up and open an account.
Top Broker For Mutual Funds Compared
Key features of online brokers with the highest rated platforms for mutual fund are compared in the table below.
| Broker | Available Mutual Funds | Types of Mutual Funds | Minimum Investment | Available Trading Platforms | Deposit & Withdrawal Methods | Customer Support Options | Regulators |
|---|---|---|---|---|---|---|---|
| Interactive Brokers | 25,000+ | Index funds, No-load funds, Load funds | $0 for IBKR Lite, $10,000 for IBKR Pro | Trader Workstation, IBKR Mobile, IBKR WebTrader | Bank Transfers, Check, Online Bill Pay, Direct Rollover, Trustee-to-Trustee | Live Chat, Phone, Email | SEC, FINRA, NYSE, FCA and other regional authorities |
| TD Ameritrade | 13,000+ | Index funds, No-load funds, Load funds, Money market mutual funds | $0 | thinkorswim, Web Platform, TD Ameritrade Mobile App | Bank Transfers, Check, Wire | Phone, Live Chat, Email, Branches | FINRA, SEC |
| Ally Invest | 12,000+ | Index funds, No-load funds, Load funds, Money market mutual funds | $0 | Ally Invest Web Platform, Ally Mobile | Bank Transfers, Wire | Phone, Live Chat, Email | FINRA, SEC |
| Charles Schwab | 3,000+ | Index funds, No-load funds, Load funds, Money market mutual funds | $1 for Schwab Funds, $0 for other funds | StreetSmart Edge, Web Platform, Schwab Mobile | Bank Transfers, Check, Wire | Phone, Live Chat, Email, Branches | FINRA, SEC |
| Fidelity | 10,000 + | Index funds, No-load funds, Load funds, Money market mutual funds, Fidelity ZERO funds | $0 for most, some funds may require a minimum | Fidelity Web Platform, Active Trader Pro, Fidelity Mobile | Bank Transfers, Check, Wire | Phone, Live Chat, Email, Branches | FINRA, SEC |
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
With the variety of online brokers in UAE offering different platforms and features, it can be hard to find the ideal choice for individual needs. Comparing and evaluating the services of different providers requires time and knowledge.
This guide does the hassle by evaluating top platforms for different types of traders and investment goals. The results of our analysis and comparison of the best mutual funds trading platforms in UAE are wrapped up in the table below.
| RANK | BROKER | PLATFORM SCORE | BEST FOR | WEBSITE |
|---|---|---|---|---|
| #1 | Interactive Brokers | 4,9/5 | Wide range of mutual funds (over 45,000 worldwide) | Official website |
| #2 | TD Ameritrade | 4,1/5 | No-transaction-fee mutual funds (NTFs) | Official website |
| #3 | Ally Invest | 4,0/5 | Actively managed mutual fund investing | Official website |
| #4 | Charles Schwab | 4,0/5 | Tax-exempt mutual funds investing and high-net-worth individuals with over $250,000 to invest | Official website |
| #5 | Fidelity | 4,0/5 | Retirement mutual funds investing | Official website |
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.
FAQ
Are all mutual funds Halal?
No, not all mutual funds are Halal. To be certain that a mutual fund is in compliance with Sharia law, traders need to look for funds that are labelled as “Islamic” or “Shariah-compliant”. These funds are managed according to Islamic principles, with the help of Shariah financial advisors.
Are mutual funds legal in UAE?
Mutual funds are regulated by the Securities and Commodities Authority (SCA) and are a legal investment in the UAE.
How are profits of mutual funds taxed in the UAE?
Profits generated with mutual funds in UAE are subject to a 0% private and corporate income tax.
Are mutual funds a good option for beginners?
Yes, mutual funds are recommended investments for beginners because of their professional management, low minimum investment requirements, high liquidity and diversification.
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. 51% 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
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
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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.
Stefan Grasic is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level.