Schwab vs. E-Trade: Compare Features
E-Trade stands out for those who love active trading, offering unique features and advanced trading options that cater to more hands-on investors.
E-Trade | Schwab | |
|---|---|---|
Investing Options | Full Access To Almost Any Asset | Full Access To Almost Any Asset |
Investing Types | Stocks, Options, Futures, ETFs, Bonds, Mutual Funds | Stocks, Options, Futures, ETFs, Bonds & Fixed Income, Forex,Mutual Funds, Money Market Funds |
Automated Investing | No | Yes |
Paper Trading | No | Yes |
IPO Access | Yes | Yes |
Dedicated Advisor | Yes | Yes |
Tax Loss Harvesting | Yes | Yes |
On the other hand, Schwab offers various assets to choose from, as well as paper trading options, automated investing, and a premium trading platform equipped with advanced analytical tools.
-
Self Investing And Fundamental Analysis Options
Schwab is our winner when it comes to long-term investing and fundamental analysis..
In terms of fundamental analysis, Schwab stands out with its research tools, providing insights from its expert team, real-time alerts and various ETFs and mutual funds to choose from.
Investors can also buy fractional shares, known as “Schwab Slices,” practice with Schwab Paper Money, and get involved in IPOs.
E-Trade's fundamental analysis tools are robust enough for most investors, providing a comprehensive view of a company’s financial health, market position, profit margins, and debt levels, across different companies.
The platform provides access to a wide range of research reports, detailed stock screeners, analyst ratings, earnings reports, and financial statements.
-
Trading Options And Technical Analysis Tools
There is no clear winner when it comes to technical analysis, as both Etrade and Schweab offer powerful trading apps.
Their Power E-Trade platform gives you customizable options chains and great risk management features, all without being overwhelming.
A standout feature is how you can layer multiple technical indicators, like moving averages, Bollinger Bands, and the Relative Strength Index (RSI), on one chart, which is a big win for traders.
Thinkorswim includes strong charting features, allowing users to create custom charts with various technical indicators and drawing tools, making it ideal for those seeking in-depth market insights.
-
Robo Advisor And Automated Investing
Schwab is the winner here, as E-trade doesn't offer a robo advisor at this moment.
Schwab’s Intelligent Portfolios offers a flexible robo-advisory experience with no management fees and over 80 low-cost ETF options.
Investors can also get ongoing assistance from a personal advisor for a monthly fee.
While it requires a minimum investment of $5,000, it provides 24/7 access to live support and features like automatic rebalancing and tax-loss harvesting for effective portfolio management.
-
Retirement Accounts
Schwab offers an impressive range of retirement accounts, including traditional, Roth, rollover, SEP, and Simple IRAs.
These accounts cater to small business owners and those needing flexible options. Schwab Personal Choice also offers a self-directed option.
-
Fees
When it comes to fees, Schwab wins.
Both E-trade and Schwab offer commission-free trading for U.S. stocks, ETFs, and mutual funds, with options trading at $0.65 per contract.
Schwab | Etrade Core Portfolio | |
|---|---|---|
Fees | Up to 0.80%
$0 online commission on U.S. listed stocks, mutual funds and ETFs, options: $0.65 per-contract, Schwab Intelligent Portfolio – 0%, Schwab Intelligent Portfolios Premium – One-time planning fee: $300 + Monthly advisory fee: $30, Schwab Wealth Advisory: up to 0.80% | 0.30% |
In comparing robo-advisor fees, Schwab’s Intelligent Portfolios is more cost-effective, with no management fee, while Etrade robo-advisor charges up to 0.30%.
-
Cash Management And Savings Rates
When it comes to banking options, E-Trade takes the lead.
Schwab | E-trade Premium Savings | |
|---|---|---|
Savings APY | 0.05% | 4.00% |
E-Trade offers a more familiar banking experience with its Premium Savings Account and checking accounts, managed by Morgan Stanley Private Bank.
Their checking accounts are great for everyday needs, offering perks like unlimited ATM fee refunds and online bill pay for added convenience. The Premium Savings Account comes with a competitive interest rate
Schwab excels in cash management with its Investor Checking account, which has no monthly fees, unlimited ATM fee rebates worldwide, and no foreign transaction fees.
Features like bill pay, mobile check deposit, and real-time alerts enhance usability and security, though interest rates on uninvested cash are low.
-
Wealth Management Options
When it comes to wealth management, there is no clear winner, as both brokerages offer great options for wealth management.
Schwab’s Wealth Advisory service provides personalized investment strategies from certified financial planners, focusing on long-term goals and tailored portfolio management.
For larger portfolios, Schwab Private Client Services and Schwab Private Wealth Services offer dedicated access to financial advisors for customized advice and planning.
On the other hand, E*TRADE, through its partnership with Morgan Stanley, provides a wide range of wealth management services.
These include personalized financial planning, custom investment strategies, and access to a broad selection of investment products, making it a solid option for those seeking professional guidance.
Bottom Line
Schwab is our pick for long-term investors, wealth management, or retirement.
On the other hand, E-Trade may be better for traders, active investors, and those who need cash management accounts with high rates on uninvested cash.
How Schwab Compares to Other Online Brokers
Schwab offers more options for investors, including robo advisors and wealth management, while Robinhood is best for beginners and traders.
Both Schwab and Fidelity offer great options for traders, plans for wealth management, and sophisticated auto-investing platforms.
Schwab provides broader tools and analysis options for long-term, value investors, while Interactive Brokers is more suited to active traders.
Schwab vs. Interactive Brokers: Which Brokerage is Right for You?
While Vanguard appeals to buy-and-hold investors, Schwab’s platform is designed for those who want to engage actively with the market.
Schwab surpasses JPM self-directed in most categories, including self-directed investing, robo advisory, and technical analysis.
Schwab vs. J.P. Morgan Self-Directed: Which Brokerage Is Best?
Schwab is our winner for investors and traders. However, the differences between brokerages are not significant. Here's our comparison:
Compare E-Trade Side By Side
Vanguard is our pick for long-term investors, wealth management, or retirement, while E-Trade may be better for traders active investors
Robinhood is best for low-cost platform for various trading needs, including Crypto. Etrade is better for one stop shop, including banking.
ETRADE is best for a comprehensive array of investment options, while Webull app design and charting is one of the most appealing we've seen
