Etrade vs Competition: Intro
E*Trade has some entertaining advertisements on television. E*Trade's competitors - Charles Schwab, TD Ameritrade,
and Ally Invest - also have a lot going for them. So how does E*Trade compare to some of its main rivals in
terms of actual brokerage services? This article is going to find out.
Etrade vs Competitors: Fees
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
TD Ameritrade
|
$0
|
$49.99
|
$0.65 per contract
|
$0
|
$0
|
|
Ally Invest
|
$0
|
$9.95
|
$0.50 per contract
|
$0
|
$0
|
|
Charles Schwab
|
$0
|
$49.95
|
$0.65 per contract
|
$0
|
$0
|
|
Etrade
|
$0
|
$19.95
|
$0.65 per contract
|
$0
|
$0
|
Services
Trading Technology
The E*Trade website is nicely laid out and easy to navigate. Since there is no trading ticket within the browser, trades are placed with simple order pages. The firm does offer an advanced desktop platform, although it comes with frequent trader requirements.
Both Schwab and Ally Invest recently updated their websites. The changes make both websites easier to navigate. The brokers also have quote bars at the bottom
of the browsing window to make security research quick and easy. However, trades can't be placed directly with the Schwab gadget. Clicking on 'Trade' takes
the user to an order page. Schwab also offers desktop platforms with account requirements.
TD Ameritrade has the best website of the four. It's easy to browse. SnapTicket is a user-friendly trading system that appears at the bottom of the browsing window. It can produce a small chart and trade stocks, options, and ETF's. The broker provides two trading platforms. Trade Architect is web-based and simpler to use, while thinkorswim is a desktop program that is more advanced. Surprisingly, both are free to use for all customers. Thinkorswim also has PaperMoney, a practice platform.
Mobile Platforms
E*Trade clients can buy and sell on Android, Windows, iPhone, iPad, Apple Watch, Kindle Fire HD, and Amazon Fire phone. Users can look over charts, place trades, deposit a check, and watch educational videos. Live streaming of CNBC is available to active traders.
TD Ameritrade has three different apps that have slightly different functions. They can be used on iPad, iPhone, Apple Watch, Windows 10, and Android. CNBC streams for free for all customers. One of the three apps is a thinkorswim platform, which has very advanced charting.
Ally Invest clients can use the regular Ally Financial mobile app, which now has investment section. It can be used to make trades for
stocks, mutual funds and options. Market news is also available. Charts can show price histories of stocks along with comparisons
and technical studies.
Investors at Schwab can trade securities on Apple (including Apple Watch), Android, Kindle Fire, and mobile web. There is live streaming of CNBC at no cost, along with bill pay and mobile check deposit.
Commissions and Account Requirements
All four brokers charge $0 for stock and ETF trades. Options at TD Ameritrade, Schwab, and E*Trade cost 65¢ for each contract.
Ally Invest charges 50¢ per contract.
None of the four brokerage firms charge any fees to open or maintain a trading account. There are no low-balance or inactivity fees at any of the firms.
Schwab does require a $1,000 minimum deposit to open a non-retirement account. E*Trade customers must deposit at least
$500, while TD Ameritrade and Ally Invest have no requirement.
ETF's and Mutual Funds
Investors can trade ETF's commission-free at all four brokers.
On the mutual fund side, E*Trade offers more than 10,000 products, with nearly 1,300 that are no load and no transaction fee. TD Ameritrade offers almost
12,000 mutual funds, including over 4,200 that carry no load and no transaction fee. At Schwab, investors have access to more than 5,000 mutual funds. More
than 3,500 are OneSource products, which are no-load, no-transaction-fee funds. Ally Invest has slightly more than 12,000 mutual funds.
Customer Service
TD Ameritrade, Schwab and E*Trade have 24/7 customer service over the phone. Schwab and E*Trade also have on-line chat. TD Ameritrade has a robo-chat service where questions
are answered by a software program. All four brokers can be reached through internal e-mail.
Charles Schwab, E*Trade and TD Ameritrade have networks of branch locations. E*Trade has 30 branches,
TD Ameritrade has over 450 offices, and Schwab has 325.
Beginner Investors: we recommend TD Ameritrade and Ally Invest.
IRA accounts: all four brokers.
Stocks/ETFs Traders: Ally Invest and TD Ameritrade.
Options Traders: Ally Invest and TD Ameritrade.
Long Term, Inactive Investors: all four brokers.
Mutual Funds Investors: Charles Schwab, Ally Invest and TD Ameritrade.
Small accounts: Ally Invest.
TD Ameritrade: Trade stocks and ETFs for free + get up to $600 bonus.
Open TD Ameritrade Account
Ally Invest:
Up to $3,500 cash bonus + $0 commission trades.
Open Ally Invest Account
Charles Schwab: Make $100,000 deposit and get 500 commission-free online equity and options trades.
Open Schwab Account
E*Trade:
Get $2,500 cash bonus when you open an account with $1 million.
Open Etrade Account
|