Updated
Fact Checked
Ashley Maready
Charles Schwab and E*TRADE have been household names for decades, and each offers features that make them "just right" for specific investors. However, the two brokers are far from identical.
In this overview of Charles Schwab vs. E*TRADE, we'll examine everything, from fees to available investments. By the time you finish reading this comparison, you should have a better idea of which broker would be a better fit for you.
Charles Schwab vs. E*TRADE: At a glance
| Offer |
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|---|---|---|
| Rating |
Rating image, 4.5 out of 5 stars.
4.5/5
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 image, 4.5 out of 5 stars.
4.5/5
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 |
Commission-free; other fees apply |
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades |
| Account Minimum | $0 | $0 |
| Next Steps |
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Charles Schwab vs. E*TRADE: Commissions & fees
Both brokerages have managed to keep costs low, which is a good thing. No one wants their investment dollars going toward expensive fees. Neither company charges a commission for mutual funds purchased online without using a broker. You can also trade stocks and ETFs without paying a commission.
Charles Schwab and E*TRADE charge a fee for moving money out of your account. However, Charles Schwab charges $25 less than E*TRADE.
| Charles Schwab | E*TRADE | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0 + $0.65 per contract | $0 + up to $0.65 per contract |
| Crypto commissions | N/A | N/A |
| Mutual fund commissions | $0 | $0 |
| Account transfer fee | $50 ($0 for partial transfers) | $75 (outgoing) |
| Account maintenance fee | N/A | $15 per month (may be waived) |
Data source: Schwab and E*TRADE.
Charles Schwab vs. E*TRADE: Investments available
Both companies offer stocks and ETFs, options, CDs, bonds, and futures. Where Charles Schwab shines is in the sheer volume of mutual funds it offers. With nearly 17,000 to choose from, Charles Schwab offers over 60% more than E*TRADE.
Charles Schwab also offers fractional shares and currencies, making it the clear winner in terms of investment availability. Neither offers cryptocurrency.
| Charles Schwab | E*TRADE | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | Yes | No |
| Options | Yes | Yes |
| Mutual funds | Yes, choose from nearly 17,000 mutual funds from more than 600 fund families | Yes, choose from nearly 6,500 mutual funds |
| CDs | Yes | Yes |
| Bonds | Yes | Yes |
| Futures | Yes | Yes |
| Crypto | No | No |
| Currencies | Yes | No |
Data source: Schwab and E*TRADE.
Charles Schwab vs. E*TRADE: Account types available
Charles Schwab also offers two account types unavailable to E*TRADE customers -- a custodial account and access to a Schwab-related credit card. American Express Platinum Card® for Schwab offers loads of features, including the ability to rapidly rack up rewards points. Terms apply.
One feature offered by both brokerages is a robo-advisor, an algorithm-driven investment service that automatically invests for you based on your financial situation and goals. While robo-advisors are not for everyone, it's nice to give new investors the option. Charles Schwab calls its robo-advisor Schwab Intelligent Portfolios. E*TRADE's version is called E*TRADE Core Portfolios.
If you're hoping to keep most of your financial accounts under one roof, Charles Schwab makes the goal easier to accomplish. However, that's not to say Schwab blows E*TRADE away. E*TRADE offers its Complete™ IRA and IRA for Minors, both of which prove valuable to the right investors.
| Charles Schwab | E*TRADE | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | Yes | Yes |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRAs/Retirement | Yes, SEP IRA, SIMPLE IRA, Solo 401(k) | Yes, Rollover IRA, Beneficiary IRA, E*TRADE Complete™ IRA, IRA for Minors |
| Custodial | Yes, the Schwab One® Custodial Account allows you to make financial gifts to a minor while teaching the child how investments work. | No |
| Checking | Yes | Yes |
| Savings | Yes | Yes |
| Credit card | Yes, under the American Express Platinum Card® for Schwab | No |
Data source: Schwab and E*TRADE.
Charles Schwab vs. E*TRADE: Mobile app and trading platforms
Given the number of people who do the bulk of their trading online and on the go, the quality of a broker's mobile app and trading platforms matter. Here's a breakdown of what each broker brings to the table.
Charles Schwab
Platform highlights
- StreetSmart Edge: Desktop-based platform featuring a customizable layout so you can show only what's important to you and how you invest.
- thinkorswim: Geared toward advanced investors, thinkorswim is especially good at helping investors take on options trades.
- Schwab Stock Slices: Laid out to allow anyone (from novice to advanced traders) to buy and sell fractional shares of stock.
- Extensive research library: Easy-to-find research on just about any question a new investor may have.
Mobile app
Opinions regarding Charles Schwab's mobile apps are a mixed bag. iOS users give it 4.8 out of 5 stars, but Android users rate the app a measly 2.4.
E*TRADE
Platform highlights
- Basic web platform: Features analyst research, free streaming market data, and an intuitive layout that makes it easy to make trades.
- Power E*TRADE platform: Features clear graphics showing the maximum profit or loss for a specific options trade, high-tech charting, Level II quotes, and live Bloomberg TV feed.
Mobile app
iOS users also appreciate the E*TRADE mobile app more than Android users. E*TRADE's iOS app rates a decent 4.6 out of 5 stars, but that rating falls to 3.9 among Android users.
Final take
Charles Schwab and E*TRADE each offer appealing features, and once an investor learns the ropes, either can be an effective trading vehicle. However, Charles Schwab has been around longer and ranked No. 1 in the J.D. Power 2023 Full-Service Investor Satisfaction Study. That said, with its robust trading platform, E*TRADE is a great option for active traders. Both platforms provide an impressive array of educational and research materials.
By the slimmest of margins, we have to say that Charles Schwab currently has an edge over E*TRADE, thanks primarily to Schwab's greater number of investment options.
Alternatives to Consider
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 2024.
| Account | Fees | Account Minimum | |
|---|---|---|---|
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Featured Offer
Rating image, 4.5 out of 5 stars.
4.5/5
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 |
$0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold | $0 | |
|
$0 for stocks, $0 for options contracts | $0 | |
Rating image, 5.0 out of 5 stars.
5.0/5
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 |
$0 commission for online U.S. stock and ETF trades; trade fractional shares for as little as $1 | $0 |
Our Brokerages Experts
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Charles Schwab and Intuit. The Motley Fool recommends the following options: short June 2024 $65 puts on Charles Schwab. The Motley Fool has a disclosure policy.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are 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. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
E*TRADE services are available just to U.S. residents.
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
For rates and fees for the American Express Platinum Card® for Schwab, click here