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 $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. 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 and Interactive Brokers provide clients with Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, Interactive Brokers offers its clients access to 10051 different mutual funds while E*TRADE has 8998 available funds, a difference of 1,053. And, commission free ETFs deserve a comparison, with Interactive Brokers falling behind E*TRADE, offering 45 commission free ETFs compared to E*TRADE's 225.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Interactive Brokers has virtual trading, E*TRADE doesn't. For mobile trading, E*TRADE and Interactive Brokers both have a 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, neither E*TRADE nor Interactive Brokers were rated Best in Class - Platforms & Tools, Best in Class - Research and Best in Class - Mobile Trading.
Overall, both E*TRADE and Interactive Brokers are rated 4.50 stars.