ETrade vs. Schwab – A Detailed Comparison
Discover our detailed comparison of ETrade and Schwab to help determine which is best for you. Whether you’re a seasoned trader or just starting out, choosing the right platform can significantly impact your trading experience.
To make your research easier, we manually found key data for ETrade and Schwab across the internet and compiled it all in this article.
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- Best overall investing platform
- Banking and investing options
Overview of ETrade
Founded in 1982, ETRADE was one of the first companies to offer electronic trading to individual investors, making it easier for the general public to participate in the stock market without the need for traditional face-to-face transactions with brokers. ETrade offers competitive pricing for derivative trading and offers a trading platform for charting and analysis.
✓ Good research tools
✓ User-friendly app
✓ Great customer support
ETrade is Best For
ETrade is best for long-term investors and active traders alike, but it is just okay compared to other platforms. If you are a long-term investor, ETrade is great, but it doesn’t offer as much flexibility with fractional shares. It is also not the broker of choice for active traders, since much better platforms like tastytrade and thinkorswim are available.
Overview of Schwab
Charles Schwab is a well-established brokerage firm known for its wide range of investment products and services. Schwab also provides a user-friendly online platform and mobile app, along with educational resources to help clients make informed investment decisions. Additionally, they offer banking services, retirement accounts, and access to financial advisors.
✓ thinkorswim charting tools
✓ Best overall investing platform
✓ Banking and investing options
Schwab is Best For
Schwab is a great brokerage for long-term investors and active traders alike. With its recent acquisition of TD Ameritrade and the thinkorswim platform, Schwab is suitable for anybody looking to trade and invest in the stock market.
Key Characteristics of ETrade and Schwab
| Platform | Platform Type | Tradeable Assets | Charting Features | Data | Premium Pricing |
|---|---|---|---|---|---|
| ETrade | Brokerage Platform | Stocks, ETFs, Mutual Funds, Options, Futures, Futures Options, Crypto, Bonds | Power ETrade Platform | Real-time data with funded account | No premium features |
| Schwab | Brokerage Platform | Stocks, ETFs, Mutual Funds, Options, Index Options, Futures, Futures Options, Bonds | thinkorswim platform | Real-time data with funded account | No premium features |
Trading Features and Tools
| Platform | DRIP | Margin Trading | Insurance | Mobile App |
|---|---|---|---|---|
| ETrade | Yes, no fees in most cases | Yes | SIPC/FDIC Insured | Yes |
| Schwab | Yes, no fees | Yes | SIPC/FDIC Insured | Yes |
Trading Costs and Commissions Compared
| Fee Type | ETrade | Schwab |
|---|---|---|
| Equity Commission | Free | Free |
| Option Commission | $0.65 per contract | $0.65 per contract |
| Futures Commission | $1.50 per contract | $2.25 per contract |
| Futures Options Commission | Must call to activate futures options | $2.25 per contract |
| Option Exercise Fee | None | None |
ETrade vs Schwab – Bottom Line
Choosing between ETrade and Schwab depends on your specific trading needs, preferred trading tools, and the type of assets you’re interested in.
Both platforms offer distinct advantages, but by considering the detailed comparison above, you can select the one that aligns best with your trading strategy and goals.
For more detailed reviews and comparisons, continue exploring our other articles on brokerage platform comparisons.
What is the Overall Best Charting Software?
I have reviewed and used nearly every trading platform available, and I believe that TradingView is the best overall charting software available. Here are some reasons why:
- All of TradingView’s key features are free to use
- TradingView provides real-time data for free whenever possible
- You are not tied to a single broker and can use whichever you want while charting on TradingView
- You can track all markets on a single platform, including stocks, ETFs, crypto, forex, and futures.
- TradingView has an excellent economic calendar and various screeners
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