There's a lot to like about E*TRADE and Charles Schwab. Both brokers cater to beginner investors and advanced traders alike. Both offer extensive investment selections, commission-free trades of stocks and exchange-traded funds and access to extensive research. Schwab has a decent app, but it provides a smaller selection of fractional shares than some other brokers.
E*TRADE's two mobile apps are impressive, but the broker's website can be a bit difficult to navigate. However, E*TRADE may appeal to options traders, particularly those who trade high volumes and will benefit from the discounts available.
Read more information about the two brokers to decide which one might be right for you.
Charles Schwab is a great legacy broker that offers a large fund selection of funds, multiple trading platforms (including the legendary thinkorswim platform), 24/7 phone and chat support and extensive research. Schwab also offers an impressive list of IRAs including custodial and inherited accounts. Schwab gives new investors $50 to split across the top five stocks in the S&P 500 and highlights educational materials specifically for people who are just getting started. Unfortunately, Schwab does not offer an IRA match nor does it have an impressive interest rate on uninvested cash.
Charles Schwab is best for:
- Beginner investors.
- Advanced traders.
- Investors seeking no-minimum index funds.
- Investors who rely on premium research.
Charles Schwab at a glance
Account minimum | $0. |
Stock trading costs | $0. |
Options trades | $0.65 per contract |
Account fees (annual, inactivity, closing) | Annual fee: $0 Inactivity fee: $0 Closing fee: $0 |
Interest rate on uninvested cash | 0.05% |
Number of no-transaction-fee mutual funds | 7,774 |
Tradable securities | Stocks, mutual funds, ETFs, options, bonds, futures, futures options, forex |
Trading platform | Five: Schwab.com, Schwab Mobile and thinkorswim for web, desktop and mobile |
Mobile app | Available for iOS and Android |
Research and data | Over a dozen, including Morningstar, Refinitiv/LSEG, Argus, Vickers and Computrade/Market Edge |
Customer support options (includes how easy it is to find key details on the website) | 24/7 phone and chat support |
IRA match | None |
» Read our full review of Charles Schwab
E*TRADE has an extensive library of educational materials, making it a great broker for anyone looking to level up their skills. E*TRADE also offers low fees, a significant volume discount on options trades, tons of no-transaction fee mutual funds and a solid trading platform. That being said, beginners may feel a little overwhelmed by E*TRADE, and the broker does not offer an IRA match.
E*TRADE is best for:
- Frequent traders.
- Research and data.
- Retirement planning assistance and educational resources.
E*TRADE at a glance
Account minimum | $0 |
Stock trading costs | $0 |
Options trades | $0.65 per contract (volume discount available) |
Account fees (annual, transfer, closing, inactivity) | Annual fee: $0 Inactivity fee: $0 Closing fee: $0 |
Interest rate on uninvested cash | 0.01% to 0.15% |
Number of no-transaction-fee mutual funds | Nearly 6,000 |
Tradable securities | Stocks, mutual funds, ETFs, options, bonds, futures and crypto |
Trading platform | Two: E*TRADE and Power E*TRADE |
Mobile app | Available for iOS and Android |
Research and data | Nine research providers, including Moodys, Refinitiv, Morningstar, MarketEdge and Smart Consensus |
Customer support options (includes how easy it is to find key details on the website) | 24/7 phone support; live chat Monday through Friday, 8:00 a.m. to 8:00 p.m. Eastern. |
IRA match | None |
» Read our full review of E*TRADE
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Want to compare more brokerages? Here's our full list of the best brokers for stock trading.
Methodology
Methodology
How do we review brokers?
All NerdWallet reviews and lists of the best investing products are created by our editorial team of full-time writers and editors, independent of any business relationships. In this case, our investing team's comprehensive review process evaluates and ranks the largest U.S. brokers by assets under management, along with emerging industry players. Our aim is to provide an independent, balanced assessment of brokerages to help arm you with information to make sound, informed judgments on which ones will best meet your needs. Our highest priority is maintaining editorial integrity.
We collect data directly from brokerages through detailed questionnaires and conduct first-hand testing and observation through demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the brokerages and our specialists’ hands-on research, fuel our proprietary assessment process that scores each broker's performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).
For more details about the categories considered when rating brokers and our process, read our full methodology.
