E-Trade vs Interactive Brokers: Compare Features
Where E-Trade surpasses IBKR is in its ease of use and the overall accessibility of its tools, making it a great choice for those who are either new to investing or prefer a more straightforward, guided approach.
Interactive Brokers | E-Trade | |
|---|---|---|
Investing Options | Full Access To Almost Any Asset | Full Access To Almost Any Asset |
Investing Types | Stocks, Options, Futures, ETFs, Crypto, Bonds & CDs, Margin, Mutual Funds, Hedge funds, Forex, Commodities | Stocks, Options, Futures, ETFs, Bonds, Mutual Funds |
Automated Investing | Yes | Yes |
Paper Trading | Yes | No |
IPO Access | No | Yes |
Dedicated Advisor | No | Yes |
Tax Loss Harvesting | No | Yes |
Conversely, IBKR shines with its advanced features, global market access, and powerful trading tools, making it ideal for more experienced traders needing detailed analysis and investment control.
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Self Investing And Fundamental Analysis Options
IBKR is our winner here due to its vast investment options and third-party fundamental analysis options.
IBKR offers access to a broader range of global markets, giving traders the ability to execute trades across multiple exchanges worldwide.
For investors who are into detailed fundamental analysis, IBKR’s platform provides comprehensive research tools, including third-party integrations that allow for an even deeper dive into market data and performance metrics.
On the other hand, E-Trade's fundamental analysis tools are robust enough for most investors, providing a comprehensive view of a company’s financial health and market position
The platform provides access to a wide range of research reports, data, and analysis to help investors make informed decisions. Key features include detailed stock screeners, analyst ratings, earnings reports, and financial statements.
For those who want to dive deeper, E-Trade offers tools to compare company fundamentals, such as revenue, profit margins, and debt levels, across different companies. It also provides access to IPOs.
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Trading Options And Technical Analysis Tools
Interactive Brokers is our winner when it comes to trading options and tools for traders.
Interactive Brokers, on the other hand, is designed for more experienced traders who demand a higher level of sophistication in their tools, even if it's a bit complex.
The Trader Workstation (TWS) platform is one of the most advanced in the industry, offering a wide range of technical analysis tools that can handle complex trading strategies.
With features like algorithmic trading, bracket orders, and customizable charting tools, IBKR is perfect for traders who need a highly detailed and customizable trading environment.
E-Trade also excels at providing a seamless mobile trading experience. Its Power E-Trade platform offers advanced tools like customizable options chains and risk management features, but it does so in an intuitive and easy-to-navigate way.
E-Trade’s research tools are user-friendly, automatically explaining technical patterns and data points, which is perfect for those who need a bit more guidance.
One of the standout features is the ability to overlay multiple technical indicators, such as moving averages, Bollinger Bands, and Relative Strength Index (RSI), on a single chart.
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Robo Advisor And Automated Investing
E-Trade’s Core Portfolios offer more experience and include features not available with IBKR.
E-Trade’s Core Portfolios is a standout feature for those who want a simple, automated approach to investing. It pairs expert guidance with automated technology to manage your investments, making it easy to set up a portfolio that aligns with your financial goals.
One of the things that makes E-Trade excel is its ease of use, allowing you to adjust your investment strategy as your goals change, and providing a hands-off experience with regular rebalancing and a low annual advisory fee of 0.30% .
On the other hand, Interactive Brokers offers Interactive Advisors, a robo-advisor with a low entry point, starting at just $100.
What sets IBKR apart is the wide range of portfolio options, including socially responsible investing and income-generating portfolios.
Interactive Advisors gives you more control and flexibility, with the ability to upgrade to a self-directed portfolio whenever you're ready to take a more active role.
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Retirement Accounts
E-Trade also offers the E-Trade Complete IRA, designed specifically for investors over 59 1/2, allowing easy access to savings with features like anytime withdrawals and a free debit card.
Interactive Brokers offers a variety of Individual Retirement Account (IRA) types, including Traditional, Roth, SEP, SIMPLE, and Inherited IRAs. These accounts are available in either cash or margin formats.
The margin IRA allows for more flexible trading, including multi-currency products, though it comes with limitations such as no cash borrowing, no cross-margining, and significantly higher margin requirements for futures trading compared to non-IRA accounts.
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Fees
When it comes to fees, both E-trade and Interactive Brokers offer an attractive low-cost model.
IBKR offers ultra-low commissions on trades, especially for high-volume traders, and provides access to global markets with competitive pricing on international trades.
However, IBKR’s pricing structure can be more complex and may include additional fees for certain services.
E-Trade has straightforward, commission-free trading but may incur higher fees for activities such as transfers.
Etrade Core Portfolio | Interactive Broker | |
|---|---|---|
Fees | 0.30% | 0% – 0.75%
$0 online commission on U.S. listed stocks and ETFs, Options: $0.15 – $0.65 per-contract, Futures: $0.25 – $0.85 per-contract. For Interactive Advisors: asset-based management fees of 0.10% to 0.75% |
When it comes to Robo Advisory, It depends.
While E-trade fee is fixed, 0.30% – the Interactive Brokers fee depends on the chosen portfolio and can be anywhere between 0.10% to 0.75%.
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Cash Management And Savings Rates
When it comes to banking options, E-trade is our winner.
E-trade Premium Savings | IB Universal Account | |
|---|---|---|
Savings APY | 4.00% | 3.83%
There will be no interest paid on the first USD 10,000 of cash. Accounts with NAV less than 100k earn a proportional rate |
IBKR’s Universal Account offers a more investment-focused approach with its cash management features.
The account offers highly competitive interest rates on cash balances, but it requires a minimum of $10,000 to earn the highest rates. Features also include mobile check deposit, direct deposit, and the ability to pay bills directly from the account.
E-Trade offers a more traditional banking experience through its Premium Savings Account and checking accounts, managed by Morgan Stanley Private Bank.
The Premium Savings Account offers a competitive interest rate, with no minimum deposit requirement.
E-Trade’s checking accounts also provide convenience, with features like unlimited ATM fee refunds and online bill pay, making them ideal for everyday banking needs.
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Wealth Management Options
E-Trade is our winner when it comes to wealth management, as IBKR doesn't offer personalized wealth management services.
Bottom Line
IBKR shines with its advanced trading tools, extensive global market access, and options for non-fundamental and technical analysis. If pure investing is your goal, IBKR may be better.
On the other hand, E-trade wins if you need a retirement account, wealth management options, or banking, as IBKR doesn't excel at these areas.
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