Triston Martin
Aug 29, 2022
Both online brokerage heavyweight Charles Schwab and pioneer E*TRADE have been around for quite some time. Both have extensive capital to invest in their infrastructure because of their long histories in the industry and enormous client bases.
Compared to Schwab's $8.14 trillion and more than 33.2 million accounts, E*TRADE's 5.2 million retail and business accounts total $800 billion. Both have grown in size due to mergers or acquisitions, with Morgan Stanley acquiring E*TRADE in 2020 and Schwab acquiring TD Ameritrade in 2018. 12
The trading platforms provided by Charles Schwab and E*TRADE are both powerful, allowing you to trade stocks and ETFs without incurring any transaction fees. Both brokers offer conditional market orders, and their user-friendly interfaces share vital capabilities, including trading note-taking and order slicing.
Schwab and E*TRADE made it simple to check accounts, view fundamental and financial data, and do research on equities. Both services are accessible via the web and streaming, providing greater functionality and a more comprehensive content selection.
There aren't a ton of ways whole personalize your experience on the website, but you can change a few elements about your workspace, including the account balances line at the top, the stocks and ETFs you see when you search, and the trade ticket.
E*TRADE provides its customers with a standard website that, while generally straightforward, includes a two-tiered navigation bar that might be intimidating to those without prior experience.
You can trade the same assets on Charles Schwab's mobile platform as you do on your desktop. Your portfolio's balance and recent stock market news are easily accessible to investors and traders.
In addition to charts, Schwab's research rating, a quotation summary, news, earnings and announcements, and specific security margin needs, the Schwab mobile app offers a wealth of information.
The trading systems of Charles Schwab and E*TRADE allow various orders to be placed. Schwab's desktop platform supports multiple order types, including OTO, OTT, OCO, MIT, MOO, and charges based on spread price, price, volume, and time.
On its online and desktop platforms, E*TRADE supports contingent, bracketed, OTO, OCO, and OTOCO orders, while its mobile platforms provide contingent and OTO orders. Due to Schwab's desktop application's support for customized orders, we give it a little edge.
Schwab's order routing technology improves the prices of over 96.6% of trades, with trades being executed in an average of 0.04 seconds and saving investors an average of $27.68 per.
Regarding order routing, E*TRADE3 employs its own technology, resulting in an average fill time of 0.08 to 0.13 seconds (depending on the shares) and an average price improvement of $8.54 to $4.78 (depending on the order size).
When commission-free trading became available, Schwab and E*TRADE jumped on the opportunity. Options traders who make less than 30 transactions each quarter on E*TRADE will pay $0.65 per contract, whereas active traders who make more than 30 trades would pay only $0.50 per contract.
Every Schwab customer must pay $0.65 for every options contract they trade. Schwab does not charge commission for over-the-counter stock trades, but E*TRADE does for less active clients ($6.95) and more active investors.
Excellent research, news, account analytics, screeners, calculators, and tax reporting tools are available to account users at E*TRADE and Schwab. Schwab's screener was superior to its competitors, but both brokers made general and options-specific screening tools available.
When comparing E*TRADE and Schwab's charting offerings, E*TRADE comes out on top due to its excellent drawing tools and the ability to see orders and positions on charts. Schwab charts allow you to establish a trade ticket, but this is simply an order ticket; there are no levels, charges, or connections with the chart itself.
Schwab and E*TRADE both include comprehensive analytic suites for the account, margin, and purchasing power, as well as retirement and long-term planning calculators. Additionally, they provide investors with everything they need to file their tax returns. E*TRADE and Schwab are top-notch in this respect, but E*TRADE's products are slightly more comprehensive than those of Schwab.
E*TRADE and Schwab are excellent options, but Schwab edges out E*TRADE for our money. This is because Schwab provides better client support, has more comprehensive educational resources, better screeners, and cheaper commissions for fixed-income investments.
E*TRADE may be the superior alternative for other investors if they place a premium on advanced charting and more reasonable options commissions for frequent traders. Unless you're a very experienced trader who needs complete control over order routing and prefers to pay lower options commissions, you can't go wrong with either broker.
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