E*TRADE vs Vanguard
An honest side-by-side comparison of two of our top investment platforms picks — pricing, strengths, weaknesses, and who each one is really for.
E*TRADE
Ranked #5 of 15 in this directory
Established online brokerage with powerful tools now part of Morgan Stanley
Vanguard
Ranked #3 of 15 in this directory
Pioneer of index investing with the lowest-cost funds in the industry
Our pick: Vanguard. Our editors rank Vanguard 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
| E*TRADE | Vanguard | |
|---|---|---|
| Pricing model | Freemium | Freemium |
| Starting price | See website | See website |
| Category | Brokerage | Brokerage |
| Editorial rank | #5 of 15 | #3 of 15 |
Strengths
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
Vanguard
- ✓Lowest-cost index funds and ETFs in the industry
- ✓Investor-owned structure eliminates conflicts of interest
- ✓Manages over $8 trillion — the most trusted name in index investing
- ✓Zero-commission trading on stocks and ETFs
- ✓Excellent target-date retirement funds for set-it-and-forget-it investing
Watch out for
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
Vanguard
- !Trading platform and website feel outdated and slow
- !Not designed for active or frequent trading
- !Customer service can have long wait times during busy periods
- !Mutual fund minimums can be high for some flagship funds
Best use cases
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
Vanguard
- →Long-term passive investor building wealth with low-cost index funds
- →Retiree wanting target-date funds for simplified retirement portfolio management
- →Cost-conscious investor who prioritizes the lowest possible expense ratios
About each tool
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.
Vanguard
Vanguard invented the index fund and remains the gold standard for low-cost, long-term investing. The company is unique in being owned by its funds, which are in turn owned by their shareholders — this structure eliminates conflicts of interest and keeps costs as low as possible. Vanguard manages over $8 trillion in assets and offers some of the lowest expense ratios in the industry. While not designed for active trading, Vanguard is the ideal platform for buy-and-hold investors focused on building wealth through diversified, low-cost portfolios over decades.
Still deciding? Browse all 15 options with honest pros, cons, and pricing.
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