Using data from the StockBrokers.com 2017 Broker Review which tested 16 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, with its regular stock trades costing $6.95, is more expensive than Charles Schwab's rate of $4.95 per trade. Looking at trading options, Charles Schwab's base fee is $4.95 while E*TRADE's is $6.95. Option contracts are pricier at E*TRADE, costing $0.75 versus $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 alongside E*TRADE offer clients Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, E*TRADE boasts an offering of 8652 mutual funds compared to Charles Schwab's 5165 available funds. And, commission free ETFs deserve a comparison, Charles Schwab offers 229 commission free ETFs versus E*TRADE's total of 133.
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, Charles Schwab along with E*TRADE both support the 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 was rated Best in Class - Research and Best in Class - Mobile Trading in 2017, while Charles Schwab was rated Best in Class - Platforms & Tools and Best in Class - Research.
Overall, Charles Schwab comes out on top with 4.50 stars over E*TRADE's 4.00 stars.