Comparing brokers side by side is no easy task. For our annual broker review, we assess over a dozen brokers on hundreds of different variables to find the best online broker
. Yielding a database of over 5,000 data points, let's compare E*TRADE vs Interactive Brokers.
To start this comparison, first, we will take a look at the online broker commission rates for placing regular stock and options trades. E*TRADE charges $6.95 per stock trade which is $6.95 more than Interactive Brokers which charges customers $0 (the broker charges a per share rate instead) per trade. Looking at trading options, Interactive Brokers's base fee is $0 while E*TRADE's is $6.95. Interactive Brokers's per contract rate of $0.70 is less than E*TRADE which charges $0.75. It's important to note that not all brokers charge a flat fee per trade. Thus, it is important to read the full commission notes for each broker, which we include with each online broker review
Next to commission rates, being able to trade what you want is important. E*TRADE and Interactive Brokers provide clients with Stock Trading, Options Trading, Mutual Funds and Futures Trading. Looking at mutual funds, Interactive Brokers boasts an offering of 11000 mutual funds compared to E*TRADE's 9062 available funds. Commission free ETFs can also be valuable for customers, with Interactive Brokers falling behind E*TRADE, offering 48 commission free ETFs compared to E*TRADE's 295.
Trading access aside, by comparing popular features and functionality, we can break down relevant differences between both brokers. Interactive Brokers makes virtual trading available to clients, while E*TRADE does not. Taking a look at mobile trading, Both E*TRADE and Interactive Brokers offer clients access to an iPhone App, iPad App and Android App. Not to be left out, online banking is also a nice benefit for many investors, and some brokerages provide these services to clients. Clients can have Checking Accounts and Debit Cards at Interactive Brokers while customers at E*TRADE can have Checking Accounts, Savings Accounts and Debit Cards. On the whole, when it comes to tools, research, and mobile trading, Interactive Brokers finished with awards Best in Class - Platforms & Tools and Best in Class - Mobile Trading, while E*TRADE came up with Best in Class - Research and Best in Class - Mobile Trading.
Overall, both E*TRADE and Interactive Brokers share a rating of 4 stars.