E*TRADE vs Charles Schwab: what’s the difference?
E*TRADE and Charles Schwab are leading US brokerages that allow investors to trade stocks, exchange-traded funds (ETFs), options, and more with $0 commission on online stocks and ETF trades.
While they share many similarities, they differ in trading platforms, product fees, and service focus.
E*TRADE is an online brokerage owned by Morgan Stanley. It offers self-directed brokerage accounts with access to US stocks, ETFs, options, mutual funds, bonds, certificates of deposits (CDs), and futures. The firm is a digital-first platform, with web, mobile, and desktop tools for active investors.
Charles Schwab is a full-service brokerage that provides self-directed investing via its brokerage accounts. Investors can trade stocks, ETFs, options, mutual funds, futures, and fixed income products with $0 commission for online US stocks and ETF trades. Charles Schwab offers an advanced trading platform, thinkorswim, for traders who want research and charting capabilities.
| Category | E*TRADE | Charles Schwab |
|---|---|---|
| Service type | Online brokerage for investing in US stocks, ETFs, options, mutual funds, bonds, CDs, and futures. | Full-service brokerage for investing in trade stocks, ETFs, options, futures, and fixed income investments. |
| Stock/ETF commission | [$0](https://us.etrade.com/what-we-offer/our-accounts/brokerage-account)per online US stock and ETF trade. | [$0](https://www.schwab.com/pricing)per online US stock and ETF trade. |
| Options pricing | $0 base and $0.65 per contract ($0.50 if ≥30 trades/quarter). | $0 base and $0.65 per contract. |
| Account minimum (brokerage) | $0 | $0 |
| Best for | Active traders who want access to the Power E*TRADE platform. | Investors seeking advanced thinkorswim tools and advisor support. |
E*Trade vs Charles Schwab: Key services
E*TRADE and Charles Schwab both offer commission-free stock and ETF trading, and access to a wide range of asset classes, but they differ in their focus.
E*TRADE has an intuitive platform and advanced options trading tools, supported by various bonds and CDs, while Charles Schwab has its professional-level thinkorswim suite, extensive research capabilities, and allows integration with full-service resources.
E*TRADE
- Brokerage access: Provides self-directed accounts for trading US stocks, ETFs, options, mutual funds, bonds, CDs, and futures. Its fixed-income offering is broad, providing investors with many options for bonds and CDs.
- Trading platforms: The company offers the Power E*TRADE platform (web and mobile) with an intuitive design and options strategy tools, and Pro (desktop) for advanced analytics and risk management. These platforms are ideal for active options traders.
- Support and resources: E*TRADE offers educational resources, market research, and customer service to self-directed clients who manage their own portfolios.
Charles Schwab
- Brokerage access: It offers self-directed brokerage accounts with trading in US stocks, ETFs, options, mutual funds, futures, and fixed-income securities. There is also Schwab Stock Slices, which allows fractional share investing in S&P 500 firms.
- Trading platforms: Features the thinkorswim suite (desktop, web, and mobile), offering advanced charting, screeners, and highly customizable strategies. It is designed for active and professional-level traders who need robust analytics.
- Support and resources: Offers in-depth research reports, extensive educational resources, and integration with Charles Schwab’s wider financial services, giving clients access to more comprehensive support than a brokerage-only model.
Both firms deliver broad brokerage access with $0 commission stock and ETF trades.
E*TRADE appeals to investors seeking intuitive platforms and advanced options tools, while Charles Schwab is ideal for those who want professional-grade research, customization, and access to a full-service financial provider.
E*TRADE vs Charles Schwab: Fees
E*TRADE and Charles Schwab charge $0 for online US stock and ETF trades, but differ in options pricing, futures commissions, and mutual fund costs, which can make one brokerage more cost-effective than the other depending on how you invest.
| Category | E*TRADE | Charles Schwab |
|---|---|---|
| Stocks & ETFs | $0 online trades | $0 online trades |
| Options | $0 + $0.65 per contract ($0.50 with 30+ trades/quarter) | $0 + $0.65 per contract |
| Futures | $1.50 per contract, per side | $2.25 per contract, per side |
| Mutual funds | $0 for no-load, no-transaction-fee funds | $0 for OneSource funds; up to $74.95 per trade otherwise |
| Advisory programs | None for brokerage; Core Portfolios: 0.30% | None for brokerage; Intelligent Portfolios $0, Premium $300 setup + $30/month |
| Expense ratios | Fund-level only | Fund-level only |
E*TRADE vs Charles Schwab: Minimum account sizes
Both E*TRADE and Charles Schwab allow investors to open a standard brokerage account with no minimum balance, but their automated and advisory services have different entry requirements. The table below compares the minimum account sizes for each platform’s main account types.
| Account type | E*TRADE | Charles Schwab |
|---|---|---|
| Standard brokerage | $0 minimum | $0 minimum |
| Robo / automated portfolios | $500 (Core Portfolios) | $5,000 (Intelligent Portfolios); $25,000 (Premium) |
E*TRADE vs Charles Schwab: The pros and cons
E*TRADE and Charles Schwab both offer $0 stock and ETF trading and broad investment access, but they differ in trading tools, derivatives pricing, fixed-income access, and advisory depth. These differences make each platform better suited to different investing styles.
Pros of E*TRADE
- $0 stock and ETF commissions: Online US-listed stock and ETF trades are commission-free, with discounted options pricing for frequent traders.
- Strong options trading platforms: Power E*TRADE web, mobile, and Pro desktop platforms offer advanced charting, options analytics, and intuitive trade execution.
- Broad fixed-income access: Investors can access a wide selection of bonds and certificates of deposit (CDs) directly through the platform.
Cons of E*TRADE
- Higher OTC stock fees: OTC trades cost $6.95 per trade, or $4.95 for frequent traders, which is higher than standard equity commissions.
- Limited integrated wealth management: E*TRADE offers fewer in-house advisory and full-service wealth management options compared with large brokerages.
- Less emphasis on futures trading: Futures are available at $1.50 per side per contract, but the platform prioritizes equities and options.
Pros of Charles Schwab
- $0 stock and ETF commissions: Schwab matches E*TRADE on commission-free online US stock and ETF trades.
- Advanced thinkorswim platform: The thinkorswim desktop, web, and mobile platforms provide deep research tools, customization, and advanced charting.
- Extensive mutual fund selection: Schwab offers dozens of proprietary no-load mutual funds and thousands of no-transaction-fee funds through OneSource.
Cons of Charles Schwab
- No options volume discounts: Options trades cost $0.65 per contract, with no reduced pricing for high-volume traders.
- Higher futures commissions: Futures trades are priced at $2.25 per side per contract, higher than E*TRADE’s rate.
- Higher advisory minimums: Schwab Intelligent Portfolios requires $5,000, and the Premium tier requires $25,000, raising the entry point for automated advice.
E*TRADE vs Charles Schwab: Technology and security
E*TRADE and Charles Schwab both provide secure digital platforms with SIPC protection up to $500,000 and guarantees against unauthorized account activity.
ETRADE focuses on a mobile-first, trader-oriented experience through Power ETRADE, offering intuitive navigation, advanced charting, and options tools, alongside encryption, two-step verification, and FDIC-insured cash sweep programs.
Charles Schwab integrates the thinkorswim platform into a broader brokerage ecosystem, combining advanced trading tools with research, education, and advisory services. Accounts are protected by SIPC, with FDIC insurance for eligible cash balances.
Final verdict: E*TRADE vs Charles Schwab
E*TRADE and Charles Schwab both offer $0-commission trading and no minimums for standard brokerage accounts, but they tend to suit different types of users.
ETRADE is better aligned with traders who value an intuitive, trading-first experience across web, mobile, and desktop platforms, along with easy access to options, futures, bonds, and CDs. Its Power ETRADE tools are designed to support frequent trading and streamlined execution.
Charles Schwab is better suited to investors who want a full-service brokerage experience, combining advanced trading tools through thinkorswim with extensive research, education, mutual fund access, and long-term investing features such as fractional shares.
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