Charles Schwab vs E*TRADE
An honest side-by-side comparison of two of our top investment platforms picks — pricing, strengths, weaknesses, and who each one is really for.
Charles Schwab
Ranked #2 of 15 in this directory
Leading full-service brokerage with excellent customer service and branch network
E*TRADE
Ranked #5 of 15 in this directory
Established online brokerage with powerful tools now part of Morgan Stanley
Our pick: Charles Schwab. Our editors rank Charles Schwab higher overall in Investment Platforms — but E*TRADE can be the better fit depending on your budget and use case below. How we review
Compare the details
| Charles Schwab | E*TRADE | |
|---|---|---|
| Pricing model | Freemium | Freemium |
| Starting price | See website | See website |
| Category | Brokerage | Brokerage |
| Editorial rank | #2 of 15 | #5 of 15 |
Strengths
Charles Schwab
- ✓Zero-commission trades with access to the thinkorswim platform from TD Ameritrade
- ✓Excellent customer service consistently rated among the best in the industry
- ✓Physical branch network for in-person consultations and support
- ✓Schwab Intelligent Portfolios offers free robo-advisory with no advisory fee
- ✓Comprehensive banking products including checking, savings, and credit cards
E*TRADE
- ✓Power E*TRADE platform offers excellent options and futures trading tools
- ✓Morgan Stanley integration provides premium research access
- ✓Wide range of investment products including managed portfolios
- ✓Strong mobile app for both casual and active investors
- ✓Comprehensive retirement account options and planning tools
Watch out for
Charles Schwab
- !Schwab Intelligent Portfolios requires a $5,000 minimum investment
- !Integration of TD Ameritrade features is still ongoing
- !Fractional shares limited to S&P 500 stocks through Schwab Stock Slices
- !International trading options are more limited than some competitors
E*TRADE
- !Some advanced features are only available on specific platforms
- !Mutual fund commissions apply for non-NTF funds
- !Account interface can feel fragmented between E*TRADE and Morgan Stanley
- !Margin rates are higher than some discount competitors
Best use cases
Charles Schwab
- →Investor wanting a full-service platform with both online and branch access
- →Active trader seeking the advanced thinkorswim charting and analysis tools
- →Saver wanting integrated brokerage and banking under one roof
E*TRADE
- →Options trader wanting powerful analysis tools on Power E*TRADE
- →Employee with Morgan Stanley stock plans wanting an integrated brokerage
- →Active trader seeking a well-established platform with comprehensive tools
About each tool
Charles Schwab
Charles Schwab is a premier investment platform offering zero-commission stock and ETF trading, a vast mutual fund marketplace, and comprehensive financial planning services. Following its merger with TD Ameritrade, Schwab now combines the best of both platforms including the thinkorswim trading platform. Schwab is known for outstanding customer service, a network of physical branches, and a commitment to serving everyday investors. The company offers proprietary Schwab Intelligent Portfolios robo-advisory service and a full range of banking products.
E*TRADE
E*TRADE, now a subsidiary of Morgan Stanley, is a pioneer in online brokerage offering zero-commission trading, the Power E*TRADE platform for active traders, and a comprehensive range of investment products. The integration with Morgan Stanley has expanded E*TRADE's capabilities to include access to Morgan Stanley research and workplace stock plan management.
Still deciding? Browse all 15 options with honest pros, cons, and pricing.
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