The StockBrokers.com annual broker review assesses more than a dozen different brokers over six months, surfacing the best online stock brokers
. This review compares Charles Schwab vs E*TRADE. Is Charles Schwab or E*TRADE a better online broker?
First, we will make a comparison of the stock and option trading fees for trading with both brokers. E*TRADE charges more than Charles Schwab for placing regular stock trades ($6.95 and $4.95, respectively). 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. Note that some brokers charge a per-share fee instead of a flat-fee commission. For a full breakdown of commissions, read our online broker reviews
For our next comparison of these two brokers, being able to trade the way you want is a must. Charles Schwab and E*TRADE provide clients with Stock Trading, Options Trading, Mutual Funds and Futures Trading. When it comes to mutual funds, E*TRADE offers its clients access to 8998 different mutual funds while Charles Schwab has 5509 available funds, a difference of 3,489. Commission free ETFs can also be a nice plus, E*TRADE offers 270 commission free ETFs versus Charles Schwab's total of 244.
Last but not least, by breaking down important features, tools, etc that each broker offers, we can really help to separate the two. 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. Furthermore, some investors like to bank online, and multiple brokerages provide these services to clients. 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. On the whole, when it comes to tools, research, and mobile trading, E*TRADE was rated Best in Class - Research and Best in Class - Mobile Trading, while Charles Schwab was rated Best in Class - Platforms & Tools and Best in Class - Research.
Overall, both Charles Schwab and E*TRADE hold a 4.50 star rating.