Comparison Introduction
Investors shopping for strong value in brokerage services have likely come across both Charles Schwab and E*TRADE. With millions of client accounts, these two firms remain major names in the industry.
So which comes out ahead - E*TRADE or Charles Schwab? Let's take a closer look.
Comparison Table
Fees and Account Minimums
Both E*TRADE and Schwab charge $0 for online ETF and stock trades. To trade options, clients at both firms pay an
additional
$0.65 per contract.
Trades placed with a live broker cost
$25 at Schwab, while
E*TRADE also charges $25.
Accounts at both companies come with no inactivity fees or account maintenance fees. Schwab and E*TRADE do not require
an initial deposit.
No-fee IRAs are available at both
firms.
Overall, this category is pretty even.
Mutual Funds
Schwab has over 6,500 mutual funds available to trade. Over 3,500 of these are OneSource funds, which are no-load and no transaction fee. Mutual funds that do carry a transaction
fee can cost
up to $49.95 or $74.95 to buy, although they're free to sell.
E*TRADE has
6,000+ mutual funds, and they are free to trade.
E*TRADE wins this category due to no commission on mutual funds.
Promotions
Charles Schwab: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.
E*TRADE:
No commissions on stocks and ETFs.
Research and Education
Schwab has good research capability. Traders have access to third-party securities reports for free. Customers also have free access to the useful Schwab Equity Ratings,
which analyze 3,000 U.S. stocks and grade them on an A, B, C, D, and F scale. The broker also issues report cards on mutual funds at no cost.
At E*TRADE, investors have access to in-person seminars, articles, and on-demand videos. Several financial topics are covered, such as options, equities, and IRAs. The firm
has excellent screeners for all major securities: stocks, options, bonds, and mutual and exchange-traded funds.
Pretty close in this category.
Customer Service
Schwab's customer service can be contacted via an online chat system. Customers can also contact the firm by phone, e-mail, or fax. The phone service is staffed 24 hours a day,
7 days a week. Schwab also provides customer service in Chinese. The broker provides phone numbers for customers traveling outside the U.S. Schwab has more than
300
brick-and-mortar locations across America.
E*TRADE also has branch locations, but just 30. Customers can contact the firm day or night via phone. Also available is an online chat system, fax, and e-mail. Using the web
site, customers can perform a variety of customer service tasks, such as order a debit card or transfer funds.
Schwab wins this category due to its large number of retail locations.
Trading Tools
The E*TRADE web site is well designed and easy to use.
Power E*TRADE Web can be used to place orders for a variety of securities, such as mutual funds, stocks,
and options. Advanced platform,
Power E*TRADE Pro, is available for active traders, while the web version runs in a browser.
Schwab's web site is simple and easy to learn. Available within the web site are
Schwab's web trading tools. They're user friendly, but only offer limited trading information.
The broker’s top trading platform is thinkorswim, available from the cloud or as a desktop application.
thinkorswim is free of charge and is available to all clients.
Pretty even here.
Mobile Platforms
Schwab provides its customers with applications for Apple and Android devices, along with mobile access through its web site. The app is user friendly and intuitive. Traders have the ability to
transfer funds, get in touch with customer service, perform a mobile check deposit, pay bills, or place trades.
E*TRADE also offers mobile platforms for its customers free of charge. These apps can be used on iPhone, iPad, Apple Watch, and Android phones and tablets.
The interface is trouble-free. Many valuable features are available, such as charts, videos, mobile check deposit, and bill pay.
E*TRADE wins this category due to its platform for Apple Watch and its CNBC video library.
Banking Features
Schwab operates an FDIC-insured bank that gives its brokerage customers a checking account. It comes
with checks and a Visa debit card at no cost. ATM fees are reimbursed globally, and the account is insured up to
$250,000.
Bank Sweep is the default cash feature for most new brokerage accounts.
E*TRADE has FDIC-insured banking through Morgan Stanley Private Bank, National Association.
The checking account comes with a Visa debit card and checks, and can be linked to an E*TRADE brokerage account.
E*TRADE Checking refunds ATM fees nationwide, while
Max-Rate Checking requires a $5,000 average monthly balance to avoid its monthly fee.
Schwab wins in this category.
Promotions
Charles Schwab: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.
E*TRADE:
No commissions on stocks and ETFs.
Additional Features
At Schwab, investors can trade foreign stocks in a regular brokerage account utilizing the company's Global Investing Services desk. The broker also offers a separate
international account where clients can buy and sell securities in twelve foreign markets using eight currencies.
Unfortunately, E*TRADE recently eliminated both its global investing and forex services. Nevertheless, it continues to offer futures services with a trading fee of just
$1.50 per contract. Schwab has both forex and futures trading.
It's a win for Schwab.
Charles Schwab vs E*TRADE: Results
There were three ties, Schwab won three categories, and E*TRADE was victorious in three. It's a tie.
Open Charles Schwab Account
Open Schwab Account
Open E*TRADE Account
Open E*TRADE Account
Updated on 4/15/2026.
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