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Charles Schwab vs E*TRADE Comparison Review

In this Charles Schwab vs E*TRADE comparison review we will show you which broker is the better option for your needs. We will details everything from fees to revenue data and security measures implemented. Everything and more in the tables below.

Charles Schwab vs E*TRADE: Popularity

QueryCharles SchwabE*TRADE
Number of users (approximate)14.2m7.1m
Website traffic (estimated)38.3m28.7m
# results on web30.7m2bn
Search volume Google550K673K
Twitter followers103.3K73.5K
FB followers252K158K
How popular on mainstream media?HighHigh
Negative media?MediumMedium
Notable awards2020 Highest in Investor Satisfaction with DIY Self-Directed Services RecognitionBest Web Platform 2020, Best Online Brokers 2019

Charles Schwab seems to be the more popular choice in almost every category, out of which is the number of clients is the most important one. Charles Schwab has double the number of active clients than E*TRADE.

Charles Schwab vs E*TRADE: User Rating

QueryCharles SchwabE*TRADE
# users rated on user platforms21 on TrustPilot, 8 on SiteJabber35 on TrustPilot, 107 on SiteJabber
Percentage of positive reviews out of user reviews62%20%
Common complimentsDiverse services, trusted and reliableFantastic trading platform, fast and reliable.
Common complaintsFrequently undergoing maintenance, not great for optionsCustomer service is terrible sometimes.
Positive feedback on Twitter?Helpful customer supportGood and easy to use platform
Negative feedback on Twitter?Mobile app is constantly going downLong waiting times for support and recurring downtime.
App rating (summary)344K+ reviews with an average 4.5 / 5 rating130K reviews with an average rating of 4.15 / 5

Even though the number of reviews online is lower than for E*TRADE, Charles Schwab has a bigger percentage of positive ratings overall. Also, almost as an anomaly for this market, people on Twitter seem to appreciate their customer support.

Charles Schwab vs E*TRADE: Background Information

QueryCharles SchwabE*TRADE
Company public/privatePublicPublic
Revenue Data$2.45 billion in Q2 2020$3.145B annual revenue for 2019
CEO and bioWalter W. Bettinger II – Is the CEO since October 2008 and is credited with leading Schwab through the financial crisis.Mike Pizzi – Over 12 years working in the company where he was also the CFO and Chief Risk Officer
Number of employees19,5004,000
Notable investors (private companies)NoneE*TRADE was acquired by Morgan Stanley for $13B on Feb 20, 2020.

As we can see from the table above, Charles Schwab is clearly the bigger player both in terms of revenue data and from the number of employees.

Charles Schwab vs E*TRADE: Security

QueryCharles SchwabE*TRADE
HTTPS CertificateYesYes
2FA ?YesYes
Device monitoring?YesYes
New device extra security?YesYes

Both companies have implemented all the important security measures needed to keep their clients and their assets safe.

Charles Schwab vs E*TRADE: Fees & Offering

QueryCharles SchwabE*TRADE
Account minimumNoneNone
Account fixed feesNoneNone
Fractional shares?YesNo
Margin costsVariesVaries
ETF buying feesNoneNone
Stock buying feesNoneNone
Option buying feesNone$0.50
Short selling feesVariesNone
Futures buying fees$1.5 per contract$1.50
Future options buying fees$0 base + $0.65 per options contract$1.50
Cryptocurrency feesNot availableNot available
Fixed income feesNone$1 per bond
Mutual funds feesNoneNone

From the fees perspective, both Charles Schwab and E*TRADE are very similar. Both allow customers to buy stocks, ETFs, and many more for free. But the main difference is that Charles Schwab also allows for the buying of fractional shares and this is a growing trend, especially in the younger generation of investors.

Charles Schwab vs E*TRADE: Trading App

QueryCharles SchwabE*TRADE
Android app # installs1m+1m+
Android app # reviews17K14K
iPhone app # reviews327K113K
Android app rating4.2 / 53.7 / 5
iPhone app rating4.8 / 54.6 / 5
Common compliments on appGood research tools and readily available informationThe app is user friendly, easy to navigate and make trades
Common complaints on appClunky and consistent problems with the login processSeveral log-in attempts before logging in
Weighted average app rating4.5 / 54.15 / 5

Very similar stats for their mobile trading apps with very similar complaints from the users. The only deciding factor is the average app rating from both app stores, which gives us the winner to be Charles Schwab.

Final conclusions:

This Charles Schwab vs E*TRADE comparison has been very close because the companies are very similar in many aspects. But overall, we need to choose Charles Schwab the winner for its size, profitability, the fact that they provide fractional share buying and because they have the better mobile app.

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