Using data from our latest annual broker review which tested more than a dozen different online brokers
over six months, we can compare Charles Schwab vs E*TRADE to determine which broker is best. Let's dive in.
First, we will break down the commission charges of both brokers for placing stock and options trades. E*TRADE charges $6.95 per stock trade which is $2.00 more than Charles Schwab which charges customers $4.95 per trade. Looking at trading options, Charles Schwab's base fee is $4.95 while E*TRADE's is $6.95. Each option contract then costs $0.75 at E*TRADE and $0.65 at Charles Schwab. Instead of flat rate fees, several brokers charge a per-share fee instead. For a complete review of trading charges, read our full online broker reviews
Next, investors want to make sure they can trade the investment vehicle they want. Charles Schwab and E*TRADE provide clients with Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, E*TRADE boasts an offering of 8998 mutual funds compared to Charles Schwab's 5509 available funds. And, commission free ETFs deserve a comparison, Charles Schwab offers 244 commission free ETFs versus E*TRADE's total of 156.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Charles Schwab nor E*TRADE offers virtual trading. For mobile trading, Both Charles Schwab and E*TRADE offer clients access to an iPhone App, iPad App and Android App. Online banking is also used by many customers, and multiple full-service brokerages provide these services. Checking Accounts and Debit Cards are available to clients of E*TRADE while Charles Schwab offers customers Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans. All factors considered, when it comes to platform tools, research, and mobile trading, E*TRADE finished with awards Best in Class - Research and Best in Class - Mobile Trading, while Charles Schwab came up with Best in Class - Platforms & Tools and Best in Class - Research.
Overall, Charles Schwab boasts 4.50 stars versus E*TRADE's 4.00 stars.