Etrade vs Charles Schwab: Commissions, Fees and Investments 2012
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- Stocks and ETFs: $9.99 if 0-149 trades per quarter; $7.99 if 150+ trades per quarter
- Options: $9.99 plus $0.75/contract if 0-149 trades per quarter; $7.99 plus $0.75/contract if 150+ trades per quarter
- Mutual Funds: $19.99
- Futures contracts: $2.99 per contract, per side + fees
- Investment products: stocks, bonds, mutual funds, futures, options, ETFs
- Minimum to open Etrade account: $2,000 for margin account. For securities accounts (except retirement accounts), an account minimum deposit of
either at least $500 in cash or a deposit of securities is required within 60 days of account opening for the account to remain active. There is no initial minimum deposit requirement for retirement, custodial, or employee stock plan accounts. Accounts not meeting the minimum deposit requirement will be closed after 60 days.
- All Etrade fees
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- Stocks and ETFs: $8.95
- Stocks and ETFs broker assisted: $33.95
- Stocks and ETFs phone trades: $13.95
- Options: $8.95 plus $0.75 per contract
- Mutual funds: $49.95. Mutual Fund OneSource® Funds - free
- CDs, Corporate Bonds, Municipal Bonds, Government Agencies, Zero-Coupon Treasuries, including STRIPS and Mortgage-Backed Securities: $1 per bond, $10 minimum, $250 maximum
- Preferred Stocks and REITs: $8.95
- Commercial Paper and Foreign Bonds, Unit Investment Trusts: call for pricing
- Investment products: stocks, bonds, mutual funds, futures, treasury issues, options, CDs, insurance, ETFs,
annuities, non-U.S. securities and ADRs, WEBs and Canadian foreign orders
- Minimum to open Charles Schwab account: $1,000
- All Charles Schwab fees
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- Very good trading tools
- No IRA account fees, no minimums with electronic statements and confirms
- Minimum to open: $1,000 for cash account, $2,000 for margin account
- Banking products: checking, savings, money market accounts, CDs and credit cards
- No surcharges on large orders, penny stocks and extended hours trading
- Great research amenities
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- Traditional banking features: credit cards and checking accounts
- Around 300 offices for personal visits, deposits and 24/7 support
- Great, varied research
- Rich selection of investment products
- Low minimum balance requirement: $1,000
- Excellent customer service
- Free dividend reinvestment
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- High commissions on all investment products
- High margin rates
- Customer service complaints
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- High commissions on stocks, options, mutual funds and ETFs
- Average trading tools
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Etrade or Charles Schwab: Comparison Summary
Charles Schwab (Charles Schwab Review) and
Etrade (Etrade Review)
are some of the best known online brokerage firms in the country. Unfortunately, they are both not cheap: $8.95 for a stock/ETF trade
and $49.95 for a mutual fund transaction at Charles Schwab and $9.99 for a stock/ETF trade and
$19.95 for a mutual fund transaction at Etrade. There are no surcharges on large orders, stocks under $1 and extended hours trades at either company
as well as no maintenance and inactivity fees.
Etrade developed more professional, intuitive and versatile trading tools than Charles Schwab. Both companies offer their clients
decent banking services.
Neither one of these firms is recommended Broker for Beginner Investors:
they don't offer online community, where users could get help, learn from more experienced traders and even get investing ideas.
They also don't provide virtual trading environment for users to practice trading without risking their money.
Etrade and Charles Schwab do not have IRA setup and annual IRA fees. They did not, however, made it into our
Best IRA Accounts list.
Etrade and Charles Schwab have commissions that are higher than average in the industry and we see no good reason to
overpay brokerage company. Etrade would be our suggestion for "buy-and-hold" investors that rarely trade.
For everyone else there are better priced, very reliable and highly-rated by investment magazines
brokerage firms to consider.
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