Decide between mutual funds and ETFs

As we have just discussed, index funds are the best instruments to start investing. However, index funds come in two flavors:

1. Mutual Funds. They are funds directly managed by a financial institution.
2. Exchange-Traded Funds (ETFs). They are funds traded on the stock market.

Both of these alternatives are index funds. They both invest in a large number of shares and replicate the index itself. You will need to decide whether you want to invest in mutual funds or ETFs.
The only notable difference is how you invest in them.
To invest in a mutual fund, you will not need to access the stock market. You will be able to invest in mutual funds through a financial institution such as Vanguard or BlackRock. Your big national banks (UBS, for instance, in Switzerland) will also offer access to some mutual funds.
On the contrary, to invest in an ETF, you will need access to the stock market. You will use a broker as the intermediary. And then you will purchase shares of an ETF as it was a stock.
Mutual funds are simple to invest in. However, there is a big issue with them in many countries. Most of us do not have access to good mutual funds. We have access to many funds from our banks. But these funds are significantly more expensive and smaller. So, they are inferior alternatives.
It is the reason why most people in Europe are investing (or should be investing) through Exchange Traded Funds (ETFs).
If you have access to good mutual funds, for instance, in the United States, you can start to invest directly with them. You will need to have a broker account.
If you do not have access to good mutual funds, you will invest through a broker account (more on that later).