Which broker is better for beginners?

Schwab gets my vote for beginners. Fractional shares let you start investing with as little as $5, the platform is approachable without being dumbed down, and you've got access to thinkorswim when you're ready to level up. Plus with 400+ branches nationwide, in-person help is never far away.

Can I transfer my account from E*TRADE to Schwab (or vice versa)?

Yes -- both brokers support ACAT transfers, making it relatively painless to move your investments in-kind without selling everything first. Just note that E*TRADE charges a $75 outgoing transfer fee versus Schwab's $50, so factor that in if you're making the switch.

Charles Schwab vs. E*TRADE (2026): Which Broker Should You Choose?

Choosing between Charles Schwab and E*TRADE from Morgan Stanley is honestly one of the better problems to have as a new investor. Both are rock-solid, time-tested brokers with zero-commission trading and plenty of features to grow into.

I'll be straight with you: I lean toward Schwab for most beginner investors, and I'll explain why as we go. That said, E*TRADE has some real advantages -- especially if you're an active trader who wants powerful tools and a sleek platform.

The right choice really does come down to how you plan to invest. Let's break it all down.

Charles Schwab vs. E*TRADE: At a glance

Offer	Charles Schwab	E*TRADE from Morgan Stanley
Rating	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.	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.
Commissions	Commissions $0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.	Commissions Commission-free; other fees apply
Account Minimum	Account Minimum $0	Account Minimum $0
Learn More	Learn More for Charles Schwab On Charles Schwab's Secure Website. Read Full Review	Learn More for ETRADE from Morgan Stanley On ETRADE's Secure Website. Read Full Review

Comparing fees: Pretty even across the board

Good news right out of the gate -- neither broker is going to bleed you dry with fees. Both Charles Schwab and E*TRADE offer $0 commission trading on stocks and ETFs, and both charge $0.65 per contract on options.

For most everyday investors that's really all that matters.

Fee Type	Schwab	E*TRADE
Stock & ETF trades	$0	$0
Options	$0 + $0.65/contract	$0 + up to $0.65/contract
Mutual funds	$0	$0
Account transfer fee	$50 full transfer ($0 partial)	$75 full transfer ($25 partial)
Account maintenance fee	N/A	N/A

Data source: Schwab and E*TRADE.

Where things get interesting is in the details. E*TRADE drops its options rate to $0.50 per contract if you're making 30+ trades per quarter -- a small perk for active traders. For futures, Schwab charges $2.25 per contract while E*TRADE comes in cheaper at $1.50.

One fee worth knowing about: if you ever want to transfer your account out, Schwab and E*TRADE both charge different fees. Not a dealbreaker, but worth keeping in mind.

Investments available: Schwab has a slight edge

Both brokers cover all the essentials, like stocks, ETFs, options, mutual funds, bonds, CDs, and futures. But when it comes to sheer variety, Schwab pulls ahead.

The mutual fund selection is a good example. Schwab offers access to around 14,500 mutual funds, which is still significantly more than E*TRADE's 5,000+.

Schwab also offers fractional shares through its Stock Slices feature, while E*TRADE still doesn't. One caveat worth mentioning: Schwab's fractional shares are limited to S&P 500 companies with a $5 minimum per slice -- so it's not quite as flexible as some competitors, but it's still a meaningful advantage over E*TRADE having nothing at all.

On crypto, neither broker lets you buy individual cryptocurrencies directly. Schwab offers exposure through crypto ETFs, futures, and other crypto-linked products, and has indicated it plans to offer spot crypto trading once the regulatory environment allows.

E*TRADE is in a similar boat with crypto ETF access only. So call that one a draw for now -- though watch this space.

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 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.	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.	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.	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.

Account types: Schwab offers more under one roof

Both brokers cover a lot of the same ground here, so don't let anyone tell you one massively outshines the other on account variety. Here's what you get with both:

Both Schwab and E*TRADE offer:

Individual and joint brokerage accounts
Traditional and Roth IRAs
Custodial accounts for minors
Robo-advisor services
Checking and savings accounts
Margin accounts
Coverdell Education Savings Accounts (ESAs)

Where Schwab pulls slightly ahead:

HSA-linked investing through Schwab's Health Savings Brokerage Account -- a great perk for anyone with a high-deductible health plan who wants to invest their HSA funds. Note that it requires opening through an eligible HSA provider like Lively, not directly through Schwab
The American Express Platinum Card® for Schwab -- letting you funnel rewards points directly into your brokerage account, which is a pretty cool perk

Both also offer robo-advisors if you'd rather put your money on autopilot -- Schwab Intelligent Portfolios and E*TRADE Core Portfolios from Morgan Stanley, respectively. Great options for beginners who want a hands-off start.

Mobile apps and trading platforms: Both are solid

Both brokers have invested heavily in their platforms and it shows. Here's the breakdown:

Charles Schwab

Flagship Schwab Mobile app is intuitive and beginner-friendly -- it doesn't just show you numbers, it explains them
Thinkorswim is a powerhouse desktop platform with hundreds of technical indicators, advanced charting, and paper trading
Two-app approach works well -- one for everyday investing, one for serious trading

E*TRADE

A mobile-first pioneer with two highly rated apps -- E*TRADE Mobile and Power E*TRADE
E*TRADE Mobile is great for everyday stock and ETF trading
Power E*TRADE is excellent for active traders who want advanced charting, real-time data, and options tools
Clean, intuitive interface that's particularly welcoming for newer investors

There's really no clear winner here. Either way you're in good hands and the difference really comes down to personal preference.

So, which broker should you choose?

Both Charles Schwab and E*TRADE are excellent brokers and you really can't go wrong with either. That said, Schwab gets the slight edge for most investors with a slightly broader investment selection, fractional shares, and a couple more account types. It's a broker you can genuinely grow into for decades.

E*TRADE is the better pick if you're an active trader who wants a clean, powerful mobile experience and loves the Power E*TRADE platform -- especially if you're hitting 30+ trades per quarter for that reduced options rate. Sound like a good fit? Open an account with E*TRADE today.

But for most people just getting started? Schwab is the move in my humble opinion. Click here to get started with Charles Schwab now.

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2026 Award Winner

Charles Schwab

Our Rating:

4.90/5

Bottom Line

Charles Schwab pioneered the low-cost brokerage model decades ago, and that legacy continues with its lineup of no-commission-fee offerings. The robust lineup of account types, investment vehicles, and high quality app round out the stacked feature set.

Read Full Review

Fees:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.

Account Minimum:

$0

Learn More for Charles Schwab

On Charles Schwab's Secure Website.

2026 Award Winner

E*TRADE from Morgan Stanley

Our Rating:

4.90/5

Bottom Line

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.

Read Full Review

Fees:

Commission-free; other fees apply

Account Minimum:

$0

SPECIAL OFFER

Open and fund a brokerage account and get up to $1,500. Terms apply.

Learn More for E*TRADE from Morgan Stanley

On E*TRADE's Secure Website.

FAQs

Schwab gets my vote for beginners. Fractional shares let you start investing with as little as $5, the platform is approachable without being dumbed down, and you've got access to thinkorswim when you're ready to level up. Plus with 400+ branches nationwide, in-person help is never far away.
Yes -- both brokers support ACAT transfers, making it relatively painless to move your investments in-kind without selling everything first. Just note that E*TRADE charges a $75 outgoing transfer fee versus Schwab's $50, so factor that in if you're making the switch.

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