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Interactive Brokers vs Vanguard 2022

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November 02, 2022

Is Interactive Brokers better than Vanguard? After testing 15 of the best online brokers over six months, E*TRADE (92.52%) is better than Interactive Brokers (89.29%). Founded in 1982 as one of the first online brokerages in the United States, E*TRADE highlights include $0 trades, two excellent mobile apps and the Power E*TRADE platform, which is great for beginners, active trading and options trading.

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Overall RatingInteractive BrokersVanguardE*TRADE
Overall4.5 Stars3.5 Stars5 Stars
Commissions & Fees4.5 Stars4.5 Stars4.5 Stars
Investment Options5 Stars4.5 Stars5 Stars
Platforms & Tools4.5 Stars1.5 Stars4.5 Stars
Mobile Trading Apps4.5 Stars3 Stars5 Stars
Research5 Stars2.5 Stars4.5 Stars
Customer Service3 Stars3 Stars4.5 Stars
Education4.5 Stars2.5 Stars4.5 Stars
Ease Of Use4 Stars4.5 Stars5 Stars
ReviewInteractive Brokers ReviewVanguard ReviewE*TRADE Review
Trading FeesInteractive BrokersVanguardE*TRADE
Minimum Deposit$0.00$0.00$0.00
Stock Trades$0.00$0.00$0.00
Penny Stock Fees (OTCCB)$0.00$0.00$6.95
Mutual Fund Trade Fee$14.95Varies$19.99
Options (Base Fee)$0.00$0.00$0.00
Options (Per Contract)$0.65$1.00$0.65
Futures (Per Contract)$0.85N/A$1.50
Broker Assisted Trade Fee$3025$25
Margin RatesInteractive BrokersVanguardE*TRADE
Margin Rate Under $24,999.994.58%8.50%11.95%
Margin Rate $25,000.00 to $49,999.994.58%11.50%11.45%
Margin Rate $50,000.00 to $99,999.994.58%10.50%10.95%
Margin Rate $100,000.00 to $249,999.994.08%10.00%10.45%
Margin Rate $250,000.00 to $499,999.994.08%9.50%9.95%
Margin Rate $500,000.00 to $999,999.994.08%8.25%9.45%
Margin Rate Above $1,000,000.003.83%N/A8.45%
Account FeesInteractive BrokersVanguardE*TRADE
IRA Annual Fee$0.00$20.00$0.00
IRA Closure Fee$0.00$0.00$0.00
Account Transfer Out (Partial)$0.00$0.00$25.00
Account Transfer Out (Full)$0.00$0.00$75.00
Options Exercise Fee$0.00$0.00$0.00
Options Assignment Fee$0.00$0.00$0.00
Investment OptionsInteractive BrokersVanguardE*TRADE
Stock TradingYesYesYes
Margin TradingYesYesYes
Fractional SharesYesNoNo
OTCBB / Pink SheetsYesYesYes
Options TradingYesYesYes
Complex Options Max Legs644
Futures TradingYesNoYes
Forex TradingNoNoNo
Crypto TradingYesNoNo
Crypto Trading - Total Coins400
Mutual Funds (No Load)1088206486
Mutual Funds (Total)11160100007242
Bonds (US Treasury)YesYesYes
Bonds (Corporate)YesYesYes
Bonds (Municipal)YesYesYes
Advisor ServicesNoYesYes
International Countries (Stocks)3300
Order TypesInteractive BrokersVanguardE*TRADE
Order Type - MarketYesYesYes
Order Type - LimitYesYesYes
Order Type - After HoursYesYesYes
Order Type - StopYesYesYes
Order Type - Trailing StopYesNoYes
Order Type - OCOYesNoYes
Order Type - OTOYesNoYes
Order Type - Broker AssistedYesYesYes
BeginnersInteractive BrokersVanguardE*TRADE
Education (Stocks)YesYesYes
Education (ETFs)YesNoYes
Education (Options)YesNoYes
Education (Mutual Funds)NoNoYes
Education (Bonds)YesNoYes
Education (Retirement)YesYesYes
Retirement CalculatorNoYesYes
Investor DictionaryYesNoYes
Paper TradingYesNoYes
Webinars (Archived)YesNoYes
Progress TrackingYesNoNo
Interactive Learning - QuizzesYesNoYes
Stock Trading AppsInteractive BrokersVanguardE*TRADE
iPhone AppYesYesYes
Android AppYesYesYes
Apple Watch AppYesNoYes
Trading - StocksYesNoYes
Trading - After-HoursYesNoYes
Trading - Simple OptionsYesNoYes
Trading - Complex OptionsYesNoYes
Order Ticket RT QuotesYesNoYes
Order Ticket SRT QuotesYesNoYes
Stock App FeaturesInteractive BrokersVanguardE*TRADE
Market Movers (Top Gainers)YesNoYes
Stream Live TVYesNoYes
Videos on DemandYesNoNo
Stock AlertsYesNoYes
Option Chains ViewableYesNoYes
Watch List (Real-time)YesNoYes
Watch List (Streaming)YesNoYes
Watch Lists - Create & ManageYesNoYes
Watch Lists - Column CustomizationYesNoYes
Watch Lists - Total Fields640995
Stock App ChartingInteractive BrokersVanguardE*TRADE
Charting - After-HoursYesNoYes
Charting - Can Turn HorizontallyYesNoYes
Charting - Multiple Time FramesYesNoYes
Charting - Technical Studies97010
Charting - Study CustomizationsYesNoYes
Charting - Stock ComparisonsNoNoYes
Trading PlatformsInteractive BrokersVanguardE*TRADE
Active Trading PlatformTrader Workstation (TWS)N/APower E*TRADE
Desktop Trading PlatformYesNoNo
Desktop Platform (Mac)YesNoNo
Web Trading PlatformYesYesYes
Paper TradingYesNoYes
Trade JournalYesNoNo
Watch Lists - Total Fields640995
Stock Chart FeaturesInteractive BrokersVanguardE*TRADE
Charting - Adjust Trades on ChartYesNoYes
Charting - Indicators / Studies1219119
Charting - Drawing Tools85031
Charting - NotesYesNoYes
Charting - Index OverlaysYesYesYes
Charting - Historical TradesYesNoYes
Charting - Corporate EventsYesYesYes
Charting - Custom Date RangeYesNoYes
Charting - Custom Time BarsYesNoNo
Charting - Automated AnalysisYesNoYes
Charting - Save ProfilesYesNoYes
Trade Ideas - Technical AnalysisYesNoYes
Charting - Study Customizations516
Charting - Custom StudiesNoNoNo
Day TradingInteractive BrokersVanguardE*TRADE
Streaming Time & SalesYesNoYes
Streaming TVYesNoYes
Direct Market Routing - StocksYesNoYes
Ladder TradingYesNoNo
Trade Hot KeysYesNoYes
Level 2 Quotes - StocksYesNoYes
Trade Ideas - BacktestingYesNoNo
Trade Ideas - Backtesting AdvYesNoNo
Short LocatorYesNoNo
Order Liquidity RebatesYesNoNo
Research OverviewInteractive BrokersVanguardE*TRADE
Research - StocksYesYesYes
Research - ETFsYesYesYes
Research - Mutual FundsYesYesYes
Research - Pink Sheets / OTCBBYesNoYes
Research - BondsYesNoYes
Screener - StocksYesYesYes
Screener - ETFsYesNoYes
Screener - Mutual FundsYesYesYes
Screener - BondsYesNoYes
Misc - Portfolio AllocationYesYesYes
Stock ResearchInteractive BrokersVanguardE*TRADE
Stock Research - PDF Reports726
Stock Research - EarningsYesYesYes
Stock Research - InsidersYesNoYes
Stock Research - SocialYesNoYes
Stock Research - NewsYesYesYes
Stock Research - ESGYesNoNo
Stock Research - SEC FilingsYesNoYes
ETF ResearchInteractive BrokersVanguardE*TRADE
ETFs - Strategy OverviewYesNoYes
ETF Fund Facts - Inception DateYesNoYes
ETF Fund Facts - Expense RatioYesNoYes
ETF Fund Facts - Net AssetsYesNoYes
ETF Fund Facts - Total HoldingsYesNoYes
ETFs - Top 10 HoldingsYesNoYes
ETFs - Sector ExposureYesNoYes
ETFs - Risk AnalysisYesNoYes
ETFs - RatingsYesNoYes
ETFs - Morningstar StyleMapYesNoYes
ETFs - PDF ReportsYesNoYes
Mutual Fund ResearchInteractive BrokersVanguardE*TRADE
Mutual Funds - Strategy OverviewYesYesYes
Mutual Funds - Performance ChartYesYesNo
Mutual Funds - Performance AnalysisYesYesYes
Mutual Funds - ProspectusYesYesYes
Mutual Funds - 3rd Party RatingsYesNoYes
Mutual Funds - Fees BreakdownYesYesYes
Mutual Funds - Top 10 HoldingsYesYesYes
Mutual Funds - Asset AllocationYesNoYes
Mutual Funds - Sector AllocationYesYesYes
Mutual Funds - Country AllocationYesNoYes
Mutual Funds - StyleMapYesYesYes
Options TradingInteractive BrokersVanguardE*TRADE
Option Chains - Basic ViewYesYesYes
Option Chains - Strategy ViewYesNoYes
Option Chains - StreamingYesNoYes
Option Chains - Total Columns44931
Option Chains - Greeks1205
Option Chains - Quick AnalysisYesNoYes
Option Analysis - P&L ChartsYesNoYes
Option Probability AnalysisYesNoYes
Option Probability Analysis AdvYesNoYes
Option Positions - GreeksYesNoYes
Option Positions - Greeks StreamingYesNoYes
Option Positions - Adv AnalysisYesNoYes
Option Positions - RollingYesNoYes
Option Positions - GroupingYesNoYes
BankingInteractive BrokersVanguardE*TRADE
Bank (Member FDIC)NoNoYes
Checking AccountsNoNoYes
Savings AccountsNoNoYes
Credit CardsNoNoYes
Debit CardsYesNoYes
Mortgage LoansNoNoYes
Customer ServiceInteractive BrokersVanguardE*TRADE
Phone Support (Prospect Customers)YesYesYes
Phone Support (Current Customers)YesYesYes
Email SupportYesYesYes
Live Chat (Prospect Customers)NoNoNo
Live Chat (Current Customers)YesNoYes
24/7 SupportNoNoYes
OverallInteractive BrokersVanguardE*TRADE
Overall4.5 Stars3.5 Stars5 Stars
Commissions & Fees4.5 Stars4.5 Stars4.5 Stars
Investment Options5 Stars4.5 Stars5 Stars
Platforms & Tools4.5 Stars1.5 Stars4.5 Stars
Mobile Trading Apps4.5 Stars3 Stars5 Stars
Research5 Stars2.5 Stars4.5 Stars
Education4.5 Stars2.5 Stars4.5 Stars
Ease Of Use4 Stars4.5 Stars5 Stars
ReviewInteractive Brokers ReviewVanguard ReviewE*TRADE Review
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Interactive Brokers vs Vanguard Comparison

Comparing brokers side by side is no easy task. For our 2022 annual broker review, we spent hundreds of hours assessing 15 brokerages to find the best online broker. Let's compare Interactive Brokers vs Vanguard.

Is Interactive Brokers or Vanguard better for beginners?

E*TRADE offers more comprehensive new investor education for beginner investors than Interactive Brokers. Interactive Brokers offers investors access to Paper Trading, Videos, Education (Stocks), Education (ETFs), Education (Options), Education (Bonds) and Education (Retirement), while Vanguard offers investors access to Education (Stocks) and Education (Retirement), neither have Education (Mutual Funds).

What about Interactive Brokers vs Vanguard pricing?

Interactive Brokers and Vanguard charge the same amount for regular stock trades, $0.00. Option contracts are pricier at Vanguard, costing $1.00 per contract versus $0.65 per contract at Interactive Brokers. For a complete commissions summary, see our best brokers for free stock trading guide.

Does Interactive Brokers or Vanguard offer a wider range of investment options?

Interactive Brokers offers investors access to Stock Trading, Fractional Shares, Options Trading, OTCBB / Pink Sheets, Mutual Funds and Futures Trading, while Vanguard offers investors access to Stock Trading, Options Trading, OTCBB / Pink Sheets, Mutual Funds and Advisor Services, neither have Forex Trading. Looking at Mutual Funds, Vanguard trails Interactive Brokers in its offering of no transaction fee (NTF) mutual funds, with Interactive Brokers offering 4329 and Vanguard offering 272.

Which trading platform is better: Interactive Brokers or Vanguard?

To compare the trading platforms of Interactive Brokers and Vanguard, we tested each broker's trading tools, research capabilities, and mobile apps. For trading tools, Interactive Brokers offers a better experience. With research, Interactive Brokers offers superior market research. Finally, we found E*TRADE to provide better mobile trading apps.

Does either broker offer banking?

Online banking can be a benefit for investors, and some brokerages do provide banking services to customers. Debit Cards are offered by Interactive Brokers while Vanguard offers none, neither have Checking Accounts, Savings Accounts, Credit Cards and Mortgage Loans.

Is Interactive Brokers good?

In 2022, Interactive Brokers remains our top pick for professionals because of its institutional-grade desktop trading platform and rock-bottom margin rates. Professionals aside, Interactive Brokers also appeals to active traders and casual investors with $0 trades and a user-friendly web platform.

Is Vanguard good?

Vanguard, known for its low-cost funds, is aimed squarely at buy-and-hold investors and its platform reflects that focus.

Interactive Brokers vs Vanguard Winner

Overall winner: E*TRADE

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