In early 2025, E-Trade launched a series of five no-fee index mutual funds, making it the second major online brokerage to offer no-cost funds, following Fidelity Investments.

E*Trade, the brokerage platform owned by Morgan Stanley (NYSE:MS), disclosed plans to launch five zero-cost mutual funds, available exclusively to its customers, according to a regulatory filing ...

E*Trade makes most of its money from the float and by charging fees on certain transactions. Learn more about how E*Trade makes money from users and partnerships.

Municipal money market funds are particularly appealing to high-income investors, as the interest earned is generally exempt from federal income tax and, in many cases, state income tax as well.

VMMXX has historically produced higher yields than other Vanguard money market funds, as well as the majority of money market funds offered at other firms. VMMXX currently yields 0.78%.

These Vanguard mutual funds are in addition to the 32 Vanguard commission-free ETFs E*TRADE included on its platform of more than 250 commission-free ETFs in June.

Open a new E*TRADE account, deposit funds and earn up to $6,000 in bonus cash with promo code OFFER24. Limited-time offer ends Jan. 31, 2025.

By eliminating commissions on all funds, including those from Vanguard and Fidelity that are only available for a fee on some other big platforms, E*Trade may have gained an edge.

The funds will have no management fee and no minimum, but can only be bought through an E*Trade account, according to a filing.