Using data from our latest annual broker review which tested more than a dozen different online brokers
over six months, we can compare E*TRADE vs Interactive Brokers 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 more than Interactive Brokers for placing regular stock trades ($6.95 and $0 (the broker charges a per share rate instead), respectively). With options, the base fees charged are $6.95 (E*TRADE) and $0 (Interactive Brokers). Each option contract then costs $0.75 at E*TRADE and $0.70 at Interactive Brokers. 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. E*TRADE alongside Interactive Brokers offer clients Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, Interactive Brokers boasts an offering of 10051 mutual funds compared to E*TRADE's 8998 available funds. And, commission free ETFs deserve a comparison, with E*TRADE having the upper hand thanks to its 225 available commission free ETFs compared to Interactive Brokers's offering of 45.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Interactive Brokers offers virtual trading while E*TRADE does not. For mobile trading, Both E*TRADE and Interactive Brokers 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. Clients can have Checking Accounts and Debit Cards at E*TRADE while customers at Interactive Brokers can have Debit Cards. All factors considered, when it comes to platform tools, research, and mobile trading, Interactive Brokers was rated Best in Class - Mobile Trading, while E*TRADE was rated Best in Class - Research.
Overall, both E*TRADE and Interactive Brokers hold a 4.50 star rating.