Market leaders Charles Schwab and E-Trade. Both firms have over $1 trillion in client assets. Both investing titans vary. E-Trade's robo-advisor charges 0.30% yearly, whereas Schwab doesn't. Schwab requires $5, whereas E-Trade requires $500. We'll compare E-Trade and Schwab for your investment.

Overview of Similarities

Product Range

Schwab has more products than E-Trade. E-Trade provides several investing choices, including the following.

• Bonds
• ETFs
• Stocks
• Mutual funds
• Futures
• Options
• Rollover IRA
• Traditional IRA
• 401(k)
• Etrade Roth IRA
• Custodial accounts
• Education savings accounts

Charles Schwab trading platform offers a wide variety of investment options, including:

• Mutual funds
• Stocks
• 401(k)
• Money market funds
• Bonds
• Custodial (minor) IRA
• Annuities
• ETFs
• Roth IRA
• Inherited (beneficiary) IRA
• Options
• Traditional IRA
• Managed Investment Accounts
• Futures
• Rollover IRA

Robo-Advisors

Robo-advisors from E-Trade and Schwab automate portfolios. E-Trade's Core Portfolios robo-advisor lets you invest $500 and pay 0.30 percent of your assets annually. We do not charge any extra commissions.

Two more categories, Smart Beta and Socially Responsible, are available in Core Portfolio's ETF selections, allowing for greater customization. Smart Beta ETFs favor high-performing funds. Socially responsible ETFs incorporate ESG practices. Investors may pick a riskier portfolio than indicated.

Schwab's robo-advisor, Intelligent Portfolios, automates investing with a $5,000 minimum. Intelligent Portfolios has no advising or commission costs. Customers may choose from three investing strategies and six risk profiles on the Charles Schwab trading platform. You may invest in a suite of 51 ETFs with Intelligent Portfolios.

SIPC Coverage

SIPC insures E-Trade and Charles Schwab trading. A $250,000 restriction limits the total to $500,000.

Facilitated Trades by Brokers

The fee for broker-assisted transactions is $25 at both E-Trade and Charles Schwab trading.

Research and Training

The educational and research resources provided by E-Trade are first-rate. Investing in education resources abound, including webinars, video tutorials, articles, online courses, calculators, and widgets. The investment screening tools and research resources are notable among the platform's merits.

The learning experience offered by Schwab is just as thorough. It offers podcasts, webinars, presentations, videos, and live events for teaching and study. Schwab's substantial in-house and external research is the icing on top.

Dividend Stock

You may purchase a fraction of a share of stock on E-Trade and Schwab via fractional trading. E-Trade only facilitates fractional purchases of ETFs via automated investing. Schwab sells fractional shares of S&P 500 companies only.

Durability

Schwab and E-Trade are established financial institutions. E-Trade has been leading the Internet trading industry since 1982. In 1971, Charles Schwab trading platform began as a conventional brokerage. By 1973, the business was already a pacesetter in bargain brokerage.

Mergers

And after the merger, E-Trade and Charles Schwab trading have extended their reach significantly. In 2020, Morgan Stanley bought the online trading pioneer E-Trade. In July 2023, Morgan Stanley will still be using E-Trade. Schwab also merged TD Ameritrade’s offerings as part of its purchase in 2020. E-Trade and TD Ameritrade are managed by their parent companies. But in 2023, Schwab began migrating TD Ameritrade clients to its platform.

Overview of Differences

Costs & Charges

E-Trade and Schwab, as one would expect, levy reasonable fees. Their pricing models differ. You may see some examples of their fees and prices here.

• When trading stocks and exchange-traded funds, there are no fees for these instruments originating from the United States.
• Digital Trading Load funds carry costs, while no load and no transaction fee mutual funds do not have any commission. For Schwab, the Mutual Fund OneSource service does not charge a fee for trading mutual funds; other mutual fund purchases may incur a fee of up to $74.95 per transaction.

Size

Schwab is far larger than E-Trade's parent firm when looking at client assets. Customers' assets owned by Charles Schwab trading platform totaled $7.65 trillion as of May 31, 2023. In comparison, Morgan Stanley's client assets were $1.36 trillion in the same period.

The Network of Branch Offices

Even in the branch division, Schwab destroys E-Trade. Customers may do business in person at any of Schwab's more than 300 locations. On the other hand, E-Trade clients are limited to visiting only one of Morgan Stanley's sixty-three locations.

Who is E-Trade For?

Is investing still something you're getting the hang of? In such a case, consider looking into E-Trade. According to experts, E-Trade's free app is the easiest way to start investing. Investors who have progressed to the advanced level may also use an app. Also, regarding user-friendliness, Forbes Advisor has E-Trade crowned as the top online broker. In addition, both novice investors and seasoned traders may find useful information in E-Trade's instructional materials.

Pros of E-Trade

• An excellent J.D. Power satisfaction rating for independent investors seeking advice
• Excellent software for new investors
• Top grades for user-friendliness among brokers operating online
• Get in touch with financial experts at no cost

Cons of E-Trade

• Robotic Investment Adviser fees
• A small number of fractional shares are available.
• Less branching system

Who is Charles Schwab For?

Schwab might be a good option for you if you need a broker that handles all of your investments. Overall, investors were most satisfied with Schwab (752) in the 2023 J.D. Power U.S. Full Service Investor Satisfaction Study. With a score of 717, E-Trade's parent company, Morgan Stanley, was deemed below average.

Experts also rate Schwab as the top online broker regarding client care, including round-the-clock phone and chat help. In addition, the organization runs over 300 branches if you want to deal with them in person. This contrasts the 63 locations that E-Trade and Morgan Stanley, its parent firm, have.

Pros of Charles Schwab

• Better than E-Trade in Forbes' Advisor rating
• Highly satisfied self-directed investors who need assistance with their investments, according to J.D. Power
• Not a dime for robo-advisor services
• Extensive branching system

Cons of Charles Schwab

• Robotic investment advisors have a high entry point
• A small number of fractional shares are available.
• A different login is necessary for futures trading.
• Digital currencies cannot be traded directly.