Charles Schwab vs. E*TRADE

Charles Schwab and E*TRADE are two of the most popular investment platforms available today. Both are full-service brokerages, supporting most mainstream assets and research data. Furthermore, they are largely comparable in both price and services. There are, however, some crucial differences between them. When deciding between Charles Schwab vs. E*TRADE, this is what to consider before making your decision.

If you need help building an investment plan for retirement or creating a financial strategy, consider speaking with a financial advisor who can help.

Charles Schwab vs. E*TRADE: Fees

When comparing Charles Schwab vs. E*TRADE, their fee structures are almost identical. Both companies charge no commissions and few trading fees on stocks and exchange-traded funds (ETFs) with no inactivity fees, deposit fees or withdrawal fees.

Both firms charge $0.65 per contract to trade options although E*TRADE reduces the cost of options to $0.50 per contract for high-volume traders that place over 30 trades per quarter. To trade futures, Schwab charges $2.25 per contract while E*TRADE only charges $1.50 per contract, per side, before fees.

Schwab charges up to $74.95 to trade mutual funds, although it also offers a selection of no-load, no-fee mutual funds through its Schwab Mutual Fund OneSource. In comparison, E*TRADE charges nothing for no-load funds and varying fees for load funds.

In short, both E*TRADE and Schwab will provide access to a significant number of no-fee funds, allowing you to trade several thousand mutual funds for free. Although the listings differ, both trading platforms offer enough free options that even investors with little money can find something that works for their portfolio.Finally, both firms offer broker-assisted trading for an additional $25 fee.

Charles Schwab vs. E*TRADE: Services & Features

When it comes to services and features, there are many similarities between E*TRADE vs. Schwab.

With both brokerages, you can trade all the must-have securities, including stocks, ETFs, bonds, mutual funds, options and futures. However, only Schwab supports cryptocurrency.

Both platforms provide in-depth trading data. Investors can look up price information, trading volume, volatility indicators and all other major technical indicators. With some investments, you can even access data for the entire life of the asset. Both platforms allow for customizable charts that allow you to compare assets or data within the same interface for easy analysis.

Both platforms have even created a dual-brand approach to investing. Schwab and E*TRADE have both expanded their offerings to provide different programs for both sophisticated traders and beginner investors.

In Schwab’s case, it offers a new platform powered by Ameritrade called thinkorswim (formerly StreetSmart Central). Available via desktop, web or mobile app, it includes advanced charting abilities with hundreds of technical indicators and drawing tools. You can try it free for 30 days.

E*TRADE accommodates its users with an advanced platform called Power E*TRADE. This program offers better customization, more technical tools and more in-depth data analysis, supported by real-time data.

Compared to Schwab’s thinkorswim, Power E*TRADE is more complex, making it well-suited for highly experienced and professional traders. However, it is very likely that the average beginner will become too overwhelmed by the steeper learning curve Power E*TRADE requires.

Both Charles Schwab and E*TRADE offer paper trading and Schwab does not. This type of virtual trading allows you to build your investing experience by making simulated trades using fake money. You can test different investment strategies and experiment with different types of securities without committing any of your money.

Charles Schwab vs. E*TRADE: Online & Mobile Experience & Mobile Experience

The trading experience with both Schwab and E*TRADE proves largely consistent, as both Charles Schwab and E*Trade offer some of the best investment apps in the industry.

With either app, users will find a clean, efficient interface, although novice investors may find E*TRADE’s platform more user-friendly. E*TRADE’s brand has always been considerate of newcomers, and that continues with its modern incarnation.

Both on the website and app, E*TRADE makes it easier to navigate around your trading space with a design that emphasizes basic but crucial data, such as price history. This may require additional research for experienced investors, but it certainly creates a less daunting experience for newcomers.

This is not to say that E*TRADE’s platform is lacking. Investors can still quickly access a generous selections of asset classes, with options ranging from bonds to ETFs, all illustrated in the classic candy cane-colored candlestick charts that make up investing. All of this may prove somewhat confusing to newcomers, but they are still likely to appreciate the streamlined interface compared to Schwab’s many intricacies.

Meanwhile, Schwab offers three ways to access its products and services: Power E*TRADE Pro, Power E*TRADE Web and Power E*TRADE App. Investors can research investments and track the markets before placing trades. There are additional bonus features, such as Bloomberg TV on E*TRADE Mobile and the Behind the Move price tracker for the Power E*TRADE app.

In additionOverall, however, Schwab favors extensive original analysis and data collection. Inexperienced investors will likely take little value from market research. However, sophisticated investors are likely to appreciate this expert analysis and find it highly useful when refining their diversification strategies and determining the best asset allocations for their investments.

Charles Schwab vs. E*TRADE: Account Types & Minimums

When choosing between Charles Schwab vs. E*TRADE brokerage accounts, be sure to research the types of accounts available and their minimum requirements to get started.

Charles Schwab

Schwab offers one of the broadest selections of account types in the industry. In addition to standard taxable brokerage accounts, with several types of investments available.

Schwab offers several types of retirement accounts, including open traditional IRAs, Roth IRAs, rollover IRAs, inherited IRAs, custodial IRAs and small business IRAs. There are also custodial accounts, trust accounts and college savings plans.

For easier investing, Schwab offers its Schwab Intelligent Portfolios, a robo-advisor providing automated portfolio management with a $5,000 minimum. For standard brokerage accounts, there is no minimum deposit requirement.

Investors can also manage their insurance and banking needs through Schwab. You can open a checking and savings account, apply for a home mortgage, open a line of credit or get a new credit card. There are also several types of insurance available, including life insurance and disability insurance.

E*TRADE

ETRADE also has a strong lineup of account types, including taxable brokerage accounts with several different types of securities.

Unlike Schwab, it does not offer fixed-income investments, money market accounts, cash management accounts, annuities or direct cryptocurrency investments.

However, like Schwab, it offers several individual retirement accounts, including traditional and Roth IRAs, rollover IRAs, inherited IRAs, an IRA for minors and its E*TRADE Complete IRA for retirement investors over the age of 59½.

Instead of choosing your own investments, you can choose from E*TRADE’s Core Portfolios, which utilize a robo-advisor service to automate investing for the more passive investor. A $500 minimum investment is required, but like Schwab, there is no required minimum deposit for E*TRADE’s standard brokerage accounts.

Schwab stands out for its generous selection of account types even offering forex trading, trust accounts and an education savings accounts, which are unavailable from Schwab. E*TRADE also offers custodial accounts for minors and an education savings account, in addition to banking services like checking and savings accounts, as well as CDs and lines of credit.

However, both platforms remain competitive in retirement account options and provide some of the best robo-advisor services with relatively low entry points.

Charles Schwab vs. E*TRADE: Who Should Use It?

The truth is, when weighing Charles Schwab vs. E*TRADE, both specialize in similar investment services with low costs and tiered services to suit both new and advanced investors.Unless you trade at a very high level, you are not likely to see a significant difference between these two platforms.

However, there are some minor differences. Charles Schwab offers expanded banking services, while E*TRADE accommodates newer investors with its simplified approach and paper trading feature that Schwab lacks.

It is best to research each platform and explore the available features. You will quickly find that although they are both well-designed products, each has its own layout and idiosyncrasies.

The best way to choose between Charles Schwab vs. E*TRADE is to give each service a test drive before actually investing any money.

Bottom Line

Businessman checks his portfolio using a mobile app.

Schwab and E*TRADE are two of the largest and most well-established trading platforms on the market. They offer largely identical prices and services, but E*TRADE takes a beginner-friendly approach while Schwab targets investors with in-depth features and research.

When deciding whether to open an account with Charles Schwab vs. E*TRADE, consider consulting a financial advisor who can provide guidance based on your existing portfolio and financial goals.

Tips for Investing

Once you’ve settled on a financial goal, consider talking with a financial advisor so you can develop an investment plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s matching tool matches you with vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Before you make a choice, be sure you learn a little bit more about everything that E*TRADE and Schwab have to offer. In our reviews we dive into the details of E*TRADE’s platform, and we do the same with Schwab.