Charles Schwab vs E*TRADE (2026)
Charles Schwab and E*TRADE both charge $0 for online stock and ETF trades and $0.65 per options contract, but E*TRADE drops to $0.50 a contract for clients with 30 or more trades a quarter and charges $1.50 per futures contract against Schwab's $2.25. Schwab charges $50 to transfer out against E*TRADE's $75 and lists lower margin rates at every published tier. Uninvested cash earns 0.01% APY at both on balances under $500,000.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | Charles Schwab | E*TRADE |
|---|---|---|
| Type | Full-service | Full-service |
| Stock/ETF commission | $0 | $0 |
| Options per contract | $0.65/contract | $0.65/contract ($0.50 with 30+ trades a quarter) |
| 10-contract options trade, open + close | $13 ($312 a year at 2 a month) | $13 ($312 a year at 2 a month) |
| Rate on uninvested cash | 0.01% APY (Uninvested cash in the brokerage account) | 0.01% APY (Bank Deposit Program sweep) |
| Margin rate on $10,000 | 12.075% | 12.45% |
| Transfer out (full account) | $50 | $75 |
| Paid tier | None | None |
| Account minimum | $0 | $0 |
| Fractional shares | Yes | Yes |
| Account types | IRA, Roth, SEP, SIMPLE, solo 401(k), custodial, 529 | IRA, Roth, SEP, SIMPLE, custodial, Coverdell |
| Platforms | Web, iOS, Android, Desktop | Web, iOS, Android, Desktop |
Options, cash and margin rows are our arithmetic from each broker's published commissions, default cash rate and margin rates (commissions only, before small regulatory and exchange fees). Rates change with the Federal Reserve's rate.
Key differences
For a frequent options trader, E*TRADE's activity discount is the difference. Hypothetically, a trader who places 40 options trades a quarter at 5 contracts each pays for 200 contracts: 200 x $0.65 = $130 a quarter at Schwab, and 200 x $0.50 = $100 at E*TRADE, or $120 less a year. Under 30 trades a quarter both charge $0.65. Index options add a fee at both: E*TRADE lists $0.54 a contract on SPX, and Schwab passes through a proprietary index fee on some index options such as SPX and VIX. Both take payment for order flow on options.
Futures and crypto traders see different price lists. Schwab charges $2.25 per futures contract per side and E*TRADE $1.50, with E-nano equity index futures at $0.75. A hypothetical trader who opens and closes 2 contracts 4 times a month pays $432 a year at Schwab and $288 at E*TRADE, before exchange and NFA fees. Schwab sells spot bitcoin and ether at 0.75% of the trade in a Schwab Crypto account. E*TRADE offers bitcoin, ether and solana at 0.50% in a separate zerohash account that is not SIPC or FDIC protected.
For a long-term investor, fractional shares and access differ. Schwab offers fractional shares in most US-listed stocks and ETFs from $1; E*TRADE is still rolling them out, starting with an S&P 100 group, with a $5 minimum. Schwab offers 24/5 trading in over 1,300 stocks and ETFs, and E*TRADE an overnight session from Sunday to Thursday for eligible securities, limit orders only. Schwab says it has more than 380 branches; E*TRADE says its phone support runs 24 hours a day. E*TRADE accounts are carried by Morgan Stanley Smith Barney, which agreed to a $35 million SEC penalty in 2022 over customer data on disposed devices.
Where Charles Schwab wins
- Futures at $2.25 a contract, plus options, bonds and funds in one firm
- 24/5 trading in over 1,300 stocks and ETFs
- More than 380 branches in 48 states and DC
- Satisfaction Guarantee refunds eligible fees if asked within 90 days
- Online trading on 12 foreign markets through the Global Account
Where E*TRADE wins
- Options at $0.50 a contract with 30+ trades a quarter
- Futures at $1.50 a contract per side
- Overnight session for eligible securities, Sunday to Thursday
- Excess SIPC from Morgan Stanley: $1.9 million per client for cash
- Bank accounts at Morgan Stanley Private Bank in the same login
Which should you choose?
Pick Charles Schwab if
- You want thinkorswim on desktop, web and mobile with 24/5 trading in over 1,300 stocks and ETFs.
- You trade futures and want them in the same firm as your IRA.
- You want a branch nearby: Schwab reported more than 380 in 48 states and DC at the end of 2025.
- You want fractional shares in most US-listed stocks and ETFs from $1.
Pick E*TRADE if
- You place 30 or more stock, ETF and options trades a quarter and want $0.50 a contract.
- You trade futures and want $1.50 a contract per side.
- You want to trade eligible stocks overnight, Sunday to Thursday.
- You want phone support that E*TRADE says is available 24 hours a day.
Charles Schwab vs E*TRADE: FAQ
Is E*TRADE cheaper than Schwab for options?
Only if you trade often. Both charge $0.65 a contract online, and E*TRADE drops to $0.50 once you execute at least 30 stock, ETF and options trades a quarter. Schwab waives the contract fee on online buy-to-close orders at $0.05 or less; E*TRADE charges no contract fee to close a short option at 10 cents or less. Exercise and assignment are free at both. See our options platform guide.
Which pays more on cash, Schwab or E*TRADE?
In the default sweep, both paid 0.01% APY on October 19, 2026; E*TRADE's Bank Deposit Program pays 0.05% from $500,000 and 0.15% at $1 million and more. At Schwab you can buy a money fund instead: Schwab Prime Advantage Money Fund (SWVXX) had a 3.71% 7-day yield on October 16, 2026. Our money market fund comparison lists other funds.
Can I move from Schwab to E*TRADE for free?
Schwab charges $50 per account for a full transfer and $0 for a partial one, and its fractional shares do not transfer, so only whole shares move. Going the other way, E*TRADE charges $75 for a full outgoing transfer. You start a transfer at the receiving broker.
Compare these against every option in our online brokers comparison.
We summarize each company's published terms and pricing, not user reviews or our own testing. Facts come from our full reviews of both brokers, each checked against the broker's own fee schedule, rate and disclosure pages on October 19, 2026 with every source listed. Some outbound links may be affiliate links. That never affects our comparisons. Nothing here is investment advice.