ETrade vs. Vanguard – A Detailed Comparison
Discover our detailed comparison of ETrade and Vanguard 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 Vanguard across the internet and compiled it all in this article.
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 Vanguard
Vanguard was founded by the legendary investor John Bogle. Bogle is also credited with creating the first retail index fund, providing retail investors with a low-cost vehicle to invest in the broader stock market. Vanguard is known for offering low-cost mutual funds and ETFs with trillions of AUM.
✓ Best for investors
✓ Low-cost investing funds
✓ Retirement planning tools
Vanguard is Best For
Vanguard is best for long-term investors who want a low-cost set-it-and-forget-it investing approach. It is not great for active traders due to its lack of charting and trading tools. While Vanguard is an excellent and well-established brokerage, it is somewhat dated and not suitable for those who want a lot of control over their investments.
Key Characteristics of ETrade and Vanguard
| 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 |
| Vanguard | Brokerage Platform | Stocks, ETFs, Mutual Funds, Options, Bonds | Price history for Vanguard funds | 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 |
| Vanguard | Yes, no fees | Yes | SIPC Insured | Yes |
Trading Costs and Commissions Compared
| Fee Type | ETrade | Vanguard |
|---|---|---|
| Equity Commission | Free | Free |
| Option Commission | $0.65 per contract | $0 + $1-per-contract fee |
| Futures Commission | $1.50 per contract | No futures |
| Futures Options Commission | Must call to activate futures options | No futures options |
| Option Exercise Fee | None | None |
ETrade vs Vanguard – Bottom Line
Choosing between ETrade and Vanguard 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?
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- TradingView has an excellent economic calendar and various screeners
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