Ask Matt: Buying 'the market' is commission-free

• Investing in the broad market has a big advantage: cost
• You shouldn't pay any commissions when you buy 'the market'
• Most major mutual fund companies and brokerages provide transaction-free funds that invest in broad indexes

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: If I just want to invest in "the market" do I have to pay a commission?

A: If you want to buy and sell individual stocks, you'll likely pay a commission. But you shouldn't be paying any commissions to invest in the market.

Index mutual funds and exchange-traded funds are baskets of stocks that allow investors to easily buy into hundreds if not thousands of stocks. These investments give investors the power of diversification, by spreading their money over hundreds of companies in different industries.

But investing in the broad market has another big advantage: cost. Nearly all index mutual funds and exchange traded funds that invest in a broad basket of stocks can be bought for $0 commissions.

On the mutual fund side, nearly all the major mutual fund companies and brokerages provide transaction-free mutual funds that invest in broad indexes like the Standard and Poor's 500. Meanwhile, several of the leading brokerage firms like Charles Schwab, Fidelity and TD Ameritrade offer a number of ETFs that let investors buy ETFs for $0 commission.

The bottom line is if you just want to invest in the market, don't pay commission. There will be annual fees for the funds, but those will be miniscule next to any commissions you might have racked up.