Charles Schwab vs. E*TRADE: Which Broker Is Right for You?
Review
Updated
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Charles Schwab and E*TRADE from Morgan Stanley 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.
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| Rating |
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
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 |
Commissions |
Commissions |
| Account Minimum |
Account Minimum |
Account Minimum |
| Learn More |
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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 from Morgan Stanley.
| 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) |
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 |
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 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
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 |
Managing your finances under one roof | $0 for stocks,¹ $0 for options contracts⁴ |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
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 |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
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 |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
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 from Morgan Stanley.
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 |
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.
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.
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.
Charles Schwab and E*TRADE from Morgan Stanley 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 from Morgan Stanley 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.
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.
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
$0
2025 Award Winner
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.
Commission-free; other fees apply
$0
Open and fund a brokerage account and get up to $1,000. Terms apply.
On E*TRADE's Secure Website.
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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.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
E*TRADE services are available just to U.S. residents.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
For rates and fees for the American Express Platinum Card® for Schwab, click here
