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E*TRADE vs Interactive Brokers
Detailed comparison of fees, features and products
4.2
BROKER ONLY4.8
BROKER ONLYFeature Comparison
| Feature Comparison | E*TRADE | Interactive Brokers |
|---|---|---|
| Wide Offering | ||
| Fractional Shares & DRIP | ||
| Free Savings Plan | ||
| Cash Sweep Yield | ||
| US Support | ||
| Tax Documents (1099) | ||
| SIPC $500k + FDIC | ||
| Score | 6/7 | 7/7 |
Fee Comparison
| Fee Comparison | E*TRADE | Interactive Brokers |
|---|---|---|
| IRA Accounts (Roth, Traditional) | $0 commission | $0 (IBKR Lite) / Tiered |
| Cash Sweep Yield | $0 commission | $0 (IBKR Lite) |
| Crypto Fee | N/A | 0.12-0.18% |
| Margin Rate | N/A | 0.03% |
| Inactivity Fee | None | None |
| Deposit Fee | Free | Free |
| Withdrawal Fee | Free | Free (1/month) |
| Min. Deposit | 0 | 0 |
Product Range
| Product Range | E*TRADE | Interactive Brokers |
|---|---|---|
| Stocks | All US stocks | 150+ markets worldwide |
| ETFs | All US ETFs | 13,000+ ETFs |
| Mutual Funds | 9,000+ mutual funds | 40,000+ funds |
| Bonds | Full bond offering | 1M+ bonds |
| Crypto | N/A | BTC, ETH, LTC, BCH |
Pros & Cons
Pros
- Morgan Stanley backing: Excellent for stock compensation (RSU/ESPP)
- Power E*TRADE: Excellent options & technical analysis
- SIPC $500k + FDIC sweep
- Great for tech employees with equity
- Solid research and education
- Managed portfolios available
Cons
- No direct crypto trading
- No fractional shares
- Higher options fees than Tastytrade
- Cash sweep yields lower than competitors
Pros
- Lowest margin rates in the industry (6% vs 12% at competitors)
- Access to 150 global markets from one account
- Best for professional traders and international investors
- SIPC $500k + Lloyd's excess insurance
- Highest cash interest rates (4.8%+ on USD)
- Best options pricing for complex strategies
Cons
- Trader Workstation (TWS) has steep learning curve
- Customer service not as friendly as Schwab/Fidelity
- Overwhelming for beginners