Charles Schwab and E*TRADE are both heavyweights and early entrants into online brokerage. Their long experience in the business and very large customer base provide them both with significant resources to invest in their platforms and services. Although Charles Schwab is the larger of the two, both brokers have the size and experience to serve investors and traders of all types. They have also grown even larger in recent years, after Morgan Stanley purchased E*TRADE in 2020, and following Schwab's purchase of TD Ameritrade in the same year. In 2024, size matters because larger firms are able to expand access to new assets like 澳洲幸运5官方开奖结果体彩网:spot cryptocurrency ETFs.

E*TRADE and Charles Schwab were quick to go commission-free for stocks and ETFs. They also offer similarly excellent tools and screeners as part of their platforms. While E*TRADE and Schwab are both very good online brokers that have many common features on their respective mobile, web, and desktop platforms, and consistently rank highly in all the categories we measure. we will take𝐆 a closer look at the differences between them to help you decide which is right for your investi💜ng or trading needs.

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• Account Minimum: $0
• Fees: $0 for stock/ETF trades, $0.65 per contract for options

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• Account Minimum: $0
• Fees: No commission for stock, ETF, and mutual fund trades; options are $0.50-$0.65 per contract, depending on trading volume

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Usability

Both Charles Schwab and E*TRADE have robust platforms that offer streaming quotes and allow you to trade stocks and ETFs commission-free. The two brokers have the capability ᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚto handle conditional market orders on their intuitive platforms. Charles Schwab and E*TRADE also make it easy to check balances, access fundamental and financial information, and conduct research on stocks.

Both platforms have a web version and a streaming version, with the streaming versions being the most robust. Schwab has a single mobile app offering, while E*TRADE has a mobile platform for each of i🌠ts online and computer workstations that replicates the web or de💦sktop experience.

Usability Verdict: E*TRADE

Overall, we found E*TRADE’s platforms easier to use, but this category was very close. 

Trade Experience

Desktop Trade Experience

Charles Schwab has a website and a fully integrated thinkorswim online and desktop platforms, all of which have real-time data streams and stock screeners. While the website does not offer many customization options, thinkorswim's platforms can all be customized for things such as information shown in the top account balances line, the ability to save specific stock or ETF searches, and even the ability to customize the trade ticket. Thinkorswim greatly increased the charting capabilities at Schwab and provided an upgrade to Schwab's whole trading experience.

E*TRADE’s offerings include a standard website that, while mostly intuitive, has a two-level menu system that can sometimes be confusing. Trading on E*TRADE is simple and straightforward: Enter a symbol, select an order type and quantity, and preview and approve. E*TRADE’s platforms allow you to create customizable watchlist views and the watchlists can be easily created from screeners. More advanced traders will lean towards the Power E*TRADE platform with powerful charts, technical pattern recognition, probability analysis, and other trading tools.

E*TRADE’s recent platform redesign has improved its options offerings, as it now uses a drop-down menu 😼that shows the various strategies and can even help determine a strategy based on risk tolerance and sentiment on the expected price direction of the security. E*TRADE allows users to trade directly from a chart, and you can track your order visually.

Desktop Trade Experience Verdict: Schwab

While the technology was quite close and both brokers offer screening tools, portfolio analytics, news, and educational material, we feel Schwab's integration of thinkorswim puts it slightly above E*TRADE in terms of serving the most active traders.

Mobile Trade Experience

Charles Schwab’s mobile platform is intuitive and easy to use, and you can trade the same asset classes ⛎as the desktop version. Investors and traders can see basic information such as balances and news on stocks in your portfolio. The Schwab mobile app also provides charts, Schwab’s research rating, a quote summary, news, earnings and announcements, and margin requi🦩rements for individual securities. Schwab provides an easy drop-down menu for selecting up to four leg options strategies, but the mobile app does not provide options profitability graphs or high level options analytics.

The mobile platform’s inability to handle contingent orders is another notable weakness. Schwab’s mobile app will meet the needs of most investors, but active traders (especially options traders), will prefer the thinkorswim mobile app that f♋ully mirrors the 💛features of the thinkorswim desktop and web apps. Again, this is a big change for Schwab in terms of closing the gap with E*TRADE when it comes to active traders.

E*TRADE offers its customers the choice of two m𝔉obile apps corresponding to the different platforms, web and desktop. The E*TRADE mobile app is focused on watchlists, market research, quotes, and portfolio management, so it is excellent for investors, but less so for active traders. The regular E*TRADE app, just like the website, provides third-party investment research, real-time data streaming, and market news from Bloomberg TV. Now with Morgan Stanley as an owner, Morgan Stanley research is🐲 available through the app (and all platforms).

The Power E*TRADE app is designed for active investors and traders, and has a deeper set of tools and functions. This includes the ability to trade stocks, ETFs, basic and complex options up to four legs, and futures all from a single trade ticket. E*TRADE's mobile apps also support contingent orders. E*TRADE’s apps do not have fixed income, so active bond investors will find an important gap at E*TRADE. 

Mobile Trade Experience Verdict: Schwab

Overall, we give Charles Schwab the edge for mobile offerings. It is very close, with both brokers giving investors the option to pick the app that best suits them, but thinkorswim brings a fresh experience aimed at heavy traders to Schwab.

Range of Offerings

Charles Schwab and E*TRADE both have very similar offerings. Neither of them offer direct exposure to cryptocurrency, but you'll find a wide range of assets at either broker.

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Order Types

The Charles Schwab and E*TRADE platforms both provide multiple order types. Schwab offers one-triggers-other (OTO), one-triggers-two orders (OTT), one-cancels-other (OCO), and orders contingent on spread price, price, volume, and time on its desktop platform. Thinkorswim also offers traders an oppor📖tunity to enter more sophisticated orders, such as a limit order with an OCO contingent order, and stop loss and profit taking levels.

E*TRADE offers contingent, bracketed, OTO, OCO, one-triggers-a-one-cancels-other ꦿ(OTOCO) on its website and desktop platforms, and contingent and OTO orders on its mobile platforms.

Order Types Verdict: Schwab

We give Schwab the edge because of the specialized orders available through thinkorswim.

Trading Technology

Schwab provides price improvement on more than 97% of its orders by using its own proprietary order routing system with an average execution speed of 0.05 seconds and a savings to investors averaging $22.84 per order (500-1,999 share trades in S&P 500 shares). E*TRADE also uses its own system for order routing and the average time to fill an order is approximately 0.09 seconds with a price improvement of $8.75 per order (100-9,999 share trades in S&P 500 shares). These are not apples-to-apples comparisons. In our analysis, we found that Charles Schwab generally saw $0.0190 per share in price improvement and E*TRADE came in lower at $0.0092 per share. In terms of payment for order flow (PFOF), something both brokers accept, E*TRADE was higher with $0.0014 per share to Charles Schwab's $0.0006 in the period we looked at. These are nowhere near the industry leaders in PFOF, but still worth noting.

Both firms offer portfolio margining, but Schwab offers frac൲tional shares while E*TRADE only offers fractional shares in its dividend reinvestment and robo-advisor offerings.

Trading Technology Verdict: Schwab

Both fill their orders quickly, but Schwab gets the small edge over E*TRADE for trading technology.

Costs

Both Schwab and E*TRADE were quick to adopt commission-free trading, so neither company charges commissions for stock and ETF trades. E*TRADE charges options traders with less than 30 trades per quarter $0.65 per contract and $0.50 per contract for active traders with over 30 trades. Schwab charges $0.65 per options contract for all traders. For those trading over-the-counter stocks, Schwab charges $6.95, while E*TRADE charges $6.95 for less active investors and $4.95 for more active account holders. Neither company charges inactivity or minimum fees, and both charge $25 for broker assisted trades.

In fixed income, Schwab does not charge commissions for T-Bills, Notes, bonds, TIPS, and new 澳洲幸运5官方开奖结果体彩网:certificate of deposit (CD) issues. At E*TRADE, secondary market transactions for CDs and corporate, municipal, agency, and zero-coupon bonds are $1 per bond, with a $10 minimum and $250 maximum commission. E*TRADE is less expensive for trading mutual funds outside of the no transaction fee program, with E*TRADE charging $0 per trade compared to $75 at Schwab.

At Schwab, margin rates are slightly lower than E*TRADE’s. E*TRADE charges 13.20% for account balances of $10,000, and Schwab comes in at 12.575%. As the balances go up, the difference remains roughly consistent, with Schwab charging 11.075% at $100,000 to E*TRADE's 11.70%.

Costs Verdict: Schwab

While it is a bit of a mixed bag in regards to which pr⛄oducts you specifically trade, Schwab offers lower margin rates and fixed income fees, giving it the edge in costs. E*TRADE may still appeal to lower-balance account holders who want robo-portfolios. Tr💃aders focusing on options trading are likely to find Schwab and E*TRADE pricey in comparison to lower cost brokers catering to this market.

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Account and Research Amenities

Both E*TRADE and Schwab have excellent research, news, account analytics, screeners, calculators, and tax reporting tools for account holders. E*TRADE has seen a jump in the amount of quality research available across platforms with the integration of Morgan Stanley's offerings and ratings. We found Schwab to have the better ETF screener, but both brokers had strong screeners in addition to options-specific screeners. E*TRADE’s charting offering used to be better than Schwab’s because it has better drawing tools and you can visually see orders and positions on charts. Schwab's integration of thinkorswim has erased that edge as both platforms now have great charting tools and technical studies.

Account and Research Amenities Verdict: Tie

E*TRADE no longer has a large charting edge on Schwab. Both firms continue to expand the breadth of information they give to investors.

Compare Account and Research Amenities

Portfolio Analysis

Both Schwab and E*TRADE have excellent suites of analytics for accounts, margin, and buying power, in addition to calculators covering retirement and long term planning. They also offer all the tax reporting tools an investor needs.

Portfolio Analysis: Schwab

The brokers are both excellent in this category. Schwab and E*TRADE offer portfolio analysis galore along with excellent tools but Schwab gets the thinkorswim bump here due to the additional backtesting capabilities it brings for active traders.

Education

Again, both platforms have a broad range of educational offerings, including many artic♛les, videos, and classes. E*TRADE has a lot of good information for new investors covering long-term investing, tax planning, and options and futures. E*TRADE also recently introduced Virtual Learning Environments, which are full-day structured online events with targeted learning objectives, such as beginner options. Schwab also has a ♚very robust array of educational offerings.

Both E*Trade and Schwab increased the volume of webcasts and online events as a result of the COVID-19 pandemic, but Schwab offers more of this programming than E*Trade. Schwab also has a branch network to assist customers further, while E*Trade has been absorbed into Morgan Stanley's branch presence.

Education Verdict: Schwab

We give the edge to Schwab in the education category because of the volume of information, including five hours of daily live programming, and a branch network with professionals that can also educate investors.

Customer Service

Both E*TRADE and Schwab offer customer service to account holders and potential customers with 24/7 support by phone. Additionally, Schwab offers support via chat with a live person. The support received is generally good, and customers can speak with live brokers and financial advisors.

Customer Service Verdict: Schwab

E*TRADE's customer service is not lacking, but Schwab’s customer service is better and it also has a branch network that can provide service. Schwab has the advantage in customer service. 

Security

Schwab and E*TRADE are tied when it comes to security. Both Schwab and E*TRADE have strong security that includes two-factor authentication for all platforms. E*TRADE hasn't reported any significant outages or data breaches in the past year. Schwab hasn't experienced outages or data breaches in the past year either.

Schwab carries excess Securities Investor Protection Corporation (SIPC) insurance provided by London insurers with an aggregate limit of $600 million, limited to a combined return to any customer of $150 million, including cash of up to $1.15 million. E*TRADE clients will be covered under the Morgan Stanley excess of Securities Investor Protection Corporation (SIPC) supplemental insurance policy, which has an aggregate limit of $1 billion. This amount is above and beyond the required insurance by SIPC.

Security Verdict: Tie

Charles Schw💛ab and E*TRADE are both up to industry standards when it comes tไo security.

Available Account Types

Charles Schwab and E*TRADE both offer the full range of commonly used account types. This includ൲🐭es:

• Individual taxable
• Traditional individual retirement accounts (IRAs)
• 澳洲幸运5官方开奖结果体彩网:Roth IRAs
• Rollover IRAs
• Simplified employee pension (SEP) IRAs
• Custodial accounts
• 529 college savings plan and education savings accounts (ESAs)
• Trusts

Available Account Types Verdict: Tie

There are some differences with E*TRADE offering an IRA specifically for minors and Schwab offering a global account with access to 12 international markets in local currency. That said, most investors will find the account types they need with either broker.

The Bottom Line

While E*TRADE and Schwab are very competitive with each other, we give the nod to Schwab for the average investor by the smallest of margins. This is because Schwab has better customer service, a larger breadth of educa♏tional offerings, superior screeners, and lower commissions for fixed income. More importantly, Schwab closed a big gap in trading experience for more active investors by finally finishing the integration of thinkorswim and the retirement of the TD Ameritrade brand. That said, the competition was very close, and other investors may find E*TRADE the better choice. E*TRADE is cheaper in terms of options with enough volume and has a comparable trading platform.

All in all, however, both brokers are excellent choices for the majority of investors and traders. The main exceptions are highly sophisticated traders that want control over routing their own orders, even lower options commissions, and direct access to cryptocurrencies. 

How We Pi𓃲cked the Best Online Brokers and Trading Pl🦄atforms

Providing readers with unbiased, comprehensive reviews of online brokers and trading platforms is a top priority for Investopedia. We combined our industry research, subject matter expertise, and investor survey data to guide the research and weighti♕ngs for our 2024 online broker awards. To collect the data, we sent a digital survey with 110 questions to each of the 26 companies we included in our rubric. Additionally, our team of researchers verified the survey responses and collected any missing data points through online research and conversations with each company directly. The data collection process spanned from Feb. 19 to March 19, 2024.

We then developed a proprietary model that scored each company to rate its performance across 11 major categories and 89 criteria to find the best online brokers and trading platforms. The score for each company’s overall star rating is a weighted average of the criteria in the following categories:

Additionally, during our 2024 research, many of the companies we reviewed gave us live demonstrations of their platforms and services via video conferencing methods and also ๊granted our team of expert writers and editors access to liv♈e accounts so they could perform hands-on testing.

Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of theꦓ top online brokers and trading platforms.

Learn more about 澳洲幸运5官方开奖结果体彩网:how we review online brokers.