This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
ETRADE and TD Ameritrade were two of the leading online brokers before both were acquired: ETRADE by Morgan Stanley (2020) and TD Ameritrade by Charles Schwab (2020). Today, TD Ameritrade accounts are migrating to Schwab, making this comparison between a broker that still operates under its own brand (E*TRADE) and one whose brand is being retired.
Fee comparison
| Fee | E*TRADE | TD Ameritrade (now Schwab) |
|---|---|---|
| Stock/ETF | $0 | $0 |
| Options | $0.65 ($0.50 active) | $0.65 |
| Margin rate (up to $25K) | 10.45% | 10.75% |
| Account minimum | $0 | $0 |
| Inactivity fee | $0 | $0 |
| Broker-assisted | $25 | $25 |
Pricing is nearly identical. E*TRADE offers a slight edge for active options traders who qualify for the $0.50 per-contract rate.
Platform comparison
| Feature | E*TRADE | TD Ameritrade (thinkorswim) |
|---|---|---|
| Desktop platform | Power E*TRADE | thinkorswim |
| Charting | 100+ studies | 400+ studies |
| Paper trading | No | Yes |
| Options analysis | Good (visual builder) | Excellent (probability, Greeks) |
| Screeners | Yes | Yes (more powerful) |
| Mobile app | Well-rated | Well-rated |
| Platform future | Continuing under Morgan Stanley | thinkorswim continues under Schwab |
thinkorswim is the stronger platform overall — more charting indicators, better options analysis, and paper trading. Power E*TRADE is easier to learn and has a more intuitive options strategy builder.
Key differences
Brand future: E*TRADE continues to operate under its own brand with Morgan Stanley backing. TD Ameritrade accounts are migrating to Charles Schwab. If you are opening a new account, go directly to Schwab for thinkorswim access.
Platform learning curve: Power ETRADE is easier to learn than thinkorswim. Beginners may prefer ETRADE. Active traders who invest the time to learn thinkorswim get a more powerful tool.
Research: Both offer strong research from Morningstar and other providers. Schwab's (formerly TD's) educational content is deeper.
Options: E*TRADE's $0.50/contract rate for active traders beats Schwab's flat $0.65. For high-volume options traders, this is the deciding factor.
Verdict by user type
| User type | Winner |
|---|---|
| Active options trader | E*TRADE ($0.50/contract) |
| Active day trader | TD Ameritrade (thinkorswim) |
| Beginner | E*TRADE (easier platform) |
| Long-term investor | Tie |
| Paper trading practice | TD Ameritrade (thinkorswim) |
Common questions
Should I open an E*TRADE or TD Ameritrade account? Open an E*TRADE account if you want the Morgan Stanley-backed broker with a simpler platform. Open a Charles Schwab account (not TD Ameritrade) if you want thinkorswim access — TD Ameritrade is no longer accepting new accounts.
Is thinkorswim going away? No. Schwab has committed to keeping thinkorswim as its flagship active trading platform. It is now free for all Schwab customers.
Can I use Power ETRADE without an ETRADE account? No. Power ETRADE is exclusive to ETRADE customers.
Where to start
Compare our E*TRADE review and Charles Schwab review (for thinkorswim access). See the broker comparisons hub for more match-ups.