E*TRADE vs. Interactive Brokers: Which Broker Is Right for You?
Review
Updated
If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
E*TRADE from Morgan Stanley and Interactive Brokers are two very popular brokerage platforms for investors of all experience and skill levels. Both have quite a lot in common, but there are some key differences, especially regarding investment offerings and trading platforms. In this E*TRADE vs. Interactive Brokers comparison, we'll take a side-by-side look at both, to see if one might be the better choice for you.
| Offer |
|
|
|---|---|---|
| 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 |
Both of these brokers have relatively low commissions across the board. Both have commission-free stock and ETF trading, and charge no more than $0.65 per contract for options trades, with lower rates for customers who trade higher volumes of options.
E*TRADE from Morgan Stanley has eliminated commissions on all mutual funds that don't have a sales charge (load). Interactive Brokers bases its mutual fund commissions on a percentage of the trade amount, capped at $14.95, but offers plenty of mutual funds with no transaction fees.
E*TRADE doesn't offer cryptocurrency trading, but Interactive Brokers does, with a rather low commission range of 0.12% to 0.18% of the trade. And finally, it's worth noting that Interactive Brokers has somewhat of a complex commission structure in a few ways, such as different commissions, including small stock and ETF commissions for "IBKR Pro" accounts, and tiered commissions for futures, currencies, and more.
| E*TRADE | Interactive Brokers | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0.50-$0.65 per contract | $0.15-$0.65 per contract |
| Crypto commissions | N/A | 0.12%-0.18% |
| Mutual fund commissions | $0 | $0-$14.95 |
| Account transfer fee | $75 (full transfers) | $0 |
| Account maintenance fee | $0 | $0 |
Both of these brokers offer a wide variety of investment products. Both offer stock and ETFs, as well as options. They also offer bonds and futures trading through their platforms, as well as plenty of mutual funds.
Having said that, there are a few important differences. E*TRADE is one of the few major brokers that still doesn't allow for fractional share trading of stocks and ETFs, while Interactive Brokers allows investors to trade fewer than one share at a time. E*TRADE from Morgan Stanley also doesn't offer cryptocurrencies or foreign currency (forex) trading, while Interactive Brokers facilitates trading in a few cryptocurrencies and is one of the most popular forex platforms.
| E*TRADE | Interactive Brokers | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | No | Yes |
| Options | Yes | Yes |
| Mutual funds | Yes, over 6,000 | Yes, over 48,000 |
| CDs | Yes | No* |
| Bonds | Yes | Yes |
| Futures | Yes | Yes |
| Crypto | No | Yes |
| Currencies | No | Yes |
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. |
Both of these brokers offer all of the major investment account types. Both allow you to open joint accounts, and both offer margin trading. For investors who want to put their portfolio on autopilot, they both have robo-advisory services -- for example, E*TRADE offers E*TRADE Core Portfolios from Morgan Stanley.
For retirement, both offer traditional and Roth IRAs, just like most brokers. But E*TRADE has a few additional options for self-employed investors, such as SIMPLE IRAs and Solo 401(k)s.
E*TRADE from Morgan Stanley could also be the better choice if you prefer to do your banking and investing with the same institution. Because it is owned by Morgan Stanley (which is a chartered bank), it offers checking and savings account products to its customers. To be sure, Interactive Brokers offers a fantastic yield on cash balances held in its brokerage accounts, but it isn't a true bank account replacement.
| E*TRADE | Interactive Brokers | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | Yes, E*TRADE Core Portfolios from Morgan Stanley | Yes, Interactive Advisors |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRA | SEP IRA, SIMPLE IRA, Solo 401(k) | SEP IRA only |
| Custodial | Yes | Yes |
| Checking | Yes* | No |
| Savings | Yes | No** |
| Credit card | No | No |
The various mobile apps and trading platforms offered by both E*TRADE and Interactive Brokers are a strong point.
E*TRADE offers an easy-to-use and feature-packed web trading platform that should meet the needs of most investors, as well as the E*TRADE from Morgan Stanley Mobile app that facilitates easy trading on the go. In addition, there's the Power E*TRADE platform that is a high-powered trading interface, designed for sophisticated stock and options traders. And unlike some others that offer high-tech platforms, the Power E*TRADE platform comes in app form as well.
Interactive Brokers offers a similar mix of platforms. The IBKR Desktop platform is the newest, and is designed to make it easy for beginners to buy and sell stock, as well as for experienced investors to place complex trades. For more sophisticated investors, the IB Trader Workstation (TWS) is a desktop trading platform that is packed with features, analytical tools, and trading capabilities. There's also the IBKR Mobile app-based platform that is great for experienced traders, as well as the IBKR GlobalTrader app that is an easier-to-use mobile platform.
The bottom line is that both offer a variety of ways to trade from home and on the go. But generally speaking, E*TRADE from Morgan Stanley is the more beginner-friendly broker of the two.
Both of these brokers are solid choices, especially for experienced traders and sophisticated investors. E*TRADE from Morgan Stanley may be the better choice for beginners, while Interactive Brokers is more focused on active and experienced investors and traders. However, both of these are platforms with lots of variety of investment options and account types, as well as reasonable commissions and fees.
On E*TRADE's Secure Website.
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.
A great low-cost option for small trade volume. While the interface isn't as clean or modern as that of other brokers, it gets the job done. Interactive Brokers is also a great choice for options investors, traders, and those trading on margin.
As low as $0 stock trades
$0
On Interactive Brokers' Secure Website.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
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.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
E*TRADE services are available just to U.S. residents.
Interactive Brokers disclosure:
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and is not responsible for the accuracy of any products or services discussed.
