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 E*TRADE vs Interactive Brokers. Is E*TRADE or Interactive Brokers 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 Interactive Brokers for placing regular stock trades ($6.95 and $0 (the broker charges a per share rate instead), respectively). For options trading, E*TRADE has a base fee of $6.95, and Interactive Brokers a base fee of $0. Option contracts are pricier at E*TRADE, costing $0.75 versus $0.70 at Interactive Brokers. 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. Both E*TRADE and Interactive Brokers support Stock Trading, Options Trading, Mutual Funds and Futures Trading. When it comes to mutual funds, E*TRADE trails Interactive Brokers by 1,053 total mutual funds, with Interactive Brokers offering 10051 and E*TRADE offering 8998. Commission free ETFs can also be a nice plus, with Interactive Brokers falling behind E*TRADE, offering 45 commission free ETFs compared to E*TRADE's 156.
Last but not least, by breaking down important features, tools, etc that each broker offers, we can really help to separate the two. Interactive Brokers makes virtual trading available to clients, while E*TRADE does not. For mobile trading, E*TRADE along with Interactive Brokers both support the 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 Interactive Brokers offers customers Debit Cards. On the whole, when it comes to tools, research, and mobile trading, Interactive Brokers posted awards Best in Class - Platforms & Tools and Best in Class - Mobile Trading in 2018, while E*TRADE found itself with Best in Class - Research and Best in Class - Mobile Trading.
Overall, both E*TRADE and Interactive Brokers are rated 4.00 stars.