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E*TRADE from Morgan Stanley and Interactive Brokers are two very popular brokerage platforms for investors of all experience and skill levels. Both have quite a lot in common, but there are some key differences, especially regarding investment offerings and trading platforms. In this E*TRADE vs. Interactive Brokers comparison, we'll take a side-by-side look at both, to see if one might be the better choice for you.
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Rating 
4.90/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Rating
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
| Commissions |
Commissions |
Commissions |
| Account Minimum |
Account Minimum |
Account Minimum |
| Learn More |
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Both of these brokers have relatively low commissions across the board. Both have commission-free stock and ETF trading, and charge no more than $0.65 per contract for options trades, with lower rates for customers who trade higher volumes of options.
E*TRADE from Morgan Stanley has eliminated commissions on all mutual funds that don't have a sales charge (load). Interactive Brokers bases its mutual fund commissions on a percentage of the trade amount, capped at $14.95, but offers plenty of mutual funds with no transaction fees.
E*TRADE doesn't offer cryptocurrency trading, but Interactive Brokers does, with a rather low commission range of 0.12% to 0.18% of the trade. And finally, it's worth noting that Interactive Brokers has somewhat of a complex commission structure in a few ways, such as different commissions, including small stock and ETF commissions for "IBKR Pro" accounts, and tiered commissions for futures, currencies, and more.
| E*TRADE | Interactive Brokers | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0.50-$0.65 per contract | $0.15-$0.65 per contract |
| Crypto commissions | N/A | 0.12%-0.18% |
| Mutual fund commissions | $0 | $0-$14.95 |
| Account transfer fee | $75 (full transfers) | $0 |
| Account maintenance fee | $0 | $0 |
Both of these brokers offer a wide variety of investment products. Both offer stock and ETFs, as well as options. They also offer bonds and futures trading through their platforms, as well as plenty of mutual funds.
Having said that, there are a few important differences. E*TRADE is one of the few major brokers that still doesn't allow for fractional share trading of stocks and ETFs, while Interactive Brokers allows investors to trade fewer than one share at a time. E*TRADE from Morgan Stanley also doesn't offer cryptocurrencies or foreign currency (forex) trading, while Interactive Brokers facilitates trading in a few cryptocurrencies and is one of the most popular forex platforms.
| E*TRADE | Interactive Brokers | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | No | Yes |
| Options | Yes | Yes |
| Mutual funds | Yes, over 6,000 | Yes, over 48,000 |
| CDs | Yes | No* |
| Bonds | Yes | Yes |
| Futures | Yes | Yes |
| Crypto | No | Yes |
| Currencies | No | Yes |
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2026.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Full-service investing at every experience level | $0 commission for online U.S. stock and ETFs*. No account fees****. |
Learn More for Fidelity
On Fidelity's Secure Website. |
4.90/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Low-cost investing with a full-featured platform | $0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares. |
Learn More for Charles Schwab
On Charles Schwab's Secure Website. |
4.80/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
Low fees on stocks, ETFs, crypto, and options | $0 on trades of stocks, ETFs and their options. Other fees may apply. |
Learn More for Robinhood
On Robinhood's Secure Website. |
Both of these brokers offer all of the major investment account types. Both allow you to open joint accounts, and both offer margin trading. For investors who want to put their portfolio on autopilot, they both have robo-advisory services -- for example, E*TRADE offers E*TRADE Core Portfolios from Morgan Stanley.
For retirement, both offer traditional and Roth IRAs, just like most brokers. But E*TRADE has a few additional options for self-employed investors, such as SIMPLE IRAs and Solo 401(k)s.
E*TRADE from Morgan Stanley could also be the better choice if you prefer to do your banking and investing with the same institution. Because it is owned by Morgan Stanley (which is a chartered bank), it offers checking and savings account products to its customers. To be sure, Interactive Brokers offers a fantastic yield on cash balances held in its brokerage accounts, but it isn't a true bank account replacement.
| E*TRADE | Interactive Brokers | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | Yes, E*TRADE Core Portfolios from Morgan Stanley | Yes, Interactive Advisors |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRA | SEP IRA, SIMPLE IRA, Solo 401(k) | SEP IRA only |
| Custodial | Yes | Yes |
| Checking | Yes* | No |
| Savings | Yes | No** |
| Credit card | No | No |
The various mobile apps and trading platforms offered by both E*TRADE and Interactive Brokers are a strong point.
E*TRADE offers an easy-to-use and feature-packed web trading platform that should meet the needs of most investors, as well as the E*TRADE from Morgan Stanley Mobile app that facilitates easy trading on the go. In addition, there's the Power E*TRADE platform that is a high-powered trading interface, designed for sophisticated stock and options traders. And unlike some others that offer high-tech platforms, the Power E*TRADE platform comes in app form as well.
Interactive Brokers offers a similar mix of platforms. The IBKR Desktop platform is the newest, and is designed to make it easy for beginners to buy and sell stock, as well as for experienced investors to place complex trades. For more sophisticated investors, the IB Trader Workstation (TWS) is a desktop trading platform that is packed with features, analytical tools, and trading capabilities. There's also the IBKR Mobile app-based platform that is great for experienced traders, as well as the IBKR GlobalTrader app that is an easier-to-use mobile platform.
The bottom line is that both offer a variety of ways to trade from home and on the go. But generally speaking, E*TRADE from Morgan Stanley is the more beginner-friendly broker of the two.
Both of these brokers are solid choices, especially for experienced traders and sophisticated investors. E*TRADE from Morgan Stanley may be the better choice for beginners, while Interactive Brokers is more focused on active and experienced investors and traders. However, both of these are platforms with lots of variety of investment options and account types, as well as reasonable commissions and fees.
On E*TRADE's Secure Website.
2026 Award Winner
E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.
Commission-free; other fees apply
$0
Open and fund a brokerage account and get up to $1,500. Terms apply.
On E*TRADE's Secure Website.
A great low-cost option for small trade volume. While the interface isn't as clean or modern as that of other brokers, it gets the job done. Interactive Brokers is also a great choice for options investors, traders, and those trading on margin.
As low as $0 stock trades
$0
Motley Fool Stock Disclosures
Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.E*TRADE services are available just to U.S. residents.
Interactive Brokers disclosure:
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and is not responsible for the accuracy of any products or services discussed.
Fidelity disclosure
Investing involves risk, including risk of loss
* - $0.00 commission applies to online U.S. equity trades and exchange-traded funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at Fidelity.com/commissions. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.
**Fidelity Crypto® is offered by Fidelity Digital Assets®. Investing involves risk, including risk of total loss. Crypto as an asset class is highly volatile, can become illiquid at any time, and is for investors with a high risk tolerance. Crypto may also be more susceptible to market manipulation than securities. Crypto is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Investors in crypto do not benefit from the same regulatory protections applicable to registered securities. Fidelity Crypto® accounts and custody and trading of crypto in such accounts are provided by Fidelity Digital Asset Services, LLC, which is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business (NMLS ID 1773897). Brokerage services in support of securities trading are provided by Fidelity Brokerage Services LLC (“FBS”), and related custody services are provided by National Financial Services LLC (“NFS”), each a registered broker-dealer and member NYSE and SIPC. Neither FBS nor NFS offer crypto as a direct investment nor provide trading or custody services for such assets. Fidelity Crypto and Fidelity Digital Assets are registered service marks of FMR LLC.
***Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
****Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See Fidelity.com/commissions for further details.
Robinhood disclosure
Margin borrowing increases your level of market risk, as a result it has the potential to magnify both your gains and losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. Regardless of the underlying value of the securities you purchased, you must repay your margin loan. Robinhood Financial can change its maintenance margin requirements at any time without prior notice. If the equity in your account falls below the minimum maintenance requirements (varies according to the security), you’ll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood Financial may be forced to sell some or all of your securities, with or without your prior approval. For more information please see Robinhood Financial’s Margin Disclosure Statement, Margin Agreement and FINRA Investor Information.
Margin trading involves risk and may not be suitable for all investors. Borrowing on margin increases your level of market risk and can amplify both gains and losses.
Robinhood Financial may change maintenance margin requirements at any time without prior notice. If the equity in your account falls below minimum maintenance requirements, you may need to deposit additional cash or collateral. If those requirements are not met, Robinhood Financial may sell securities in your account without prior approval.
The 3% matching on annual contributions requires a subscription with Robinhood Gold ($5/mo) and customers must stay subscribed to Gold for 1 year from the date of the first eligible deposit to keep the full Gold match. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. Match rate subject to change. Non-Gold customers receive a 1% match. Offer only applies to self-directed IRAs. For more information refer to the IRA Match FAQ.
You must have compensation (wage income) in order to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.
The Robinhood IRA is available to any U.S. customer with a Robinhood brokerage account in good standing.
The 3% matching on annual contributions requires a subscription with Robinhood Gold ($5/mo) and customers must stay subscribed to Gold for 1 year from the date of the first eligible deposit to keep the full Gold match. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. Match rate subject to change. Non-Gold customers receive a 1% match. Offer only applies to self-directed IRAs. For more information refer to the IRA Match FAQ.
You must have compensation (wage income) in order to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.
The Robinhood IRA is available to any U.S. customer with a Robinhood brokerage account in good standing.
Robinhood Strategies charges an annual management fee of 0.25% on the net portfolio value of each managed account. Eligible Robinhood Gold subscribers pay no management fees on the portion of their managed account net portfolio value that exceeds $100,000, thereby limiting the annual management fee to $250. Other fees apply.
All investments involve risk and loss of principal is possible.
Brokerage services are offered through Robinhood Financial LLC, ("RHF") a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, ("RHS") a registered broker dealer (member SIPC).
RHF and RHS are not banks. All are separate but affiliated entities. Securities offered by RHF are not FDIC insured and involve risk, including possible loss of principal.
Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC.
Portfolio management of managed accounts by Robinhood Asset Management, LLC (“Robinhood Strategies”), an SEC-registered investment advisor.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before trading options.
Cryptocurrency trading is offered through Robinhood Crypto, LLC (NMLS ID 1702840). Trading and holding digital assets involves significant risk, including the risk of substantial loss. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.
*Trading and owning digital assets involves significant risk, including the risk of substantial loss. Cryptocurrency trading is offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the
New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.
** Network fees may apply. Availability may be subject to regulatory approval in certain states.
