Interactive Brokers vs E*TRADE 2025

Comparison of Interactive Brokers vs E*TRADE

Assets Offered 

When it comes to investing, having access to a wide range of assets is crucial for diversification and potential returns. IBKR and E*TRADE offer typical investment options such as stocks, ETFs, bonds, and mutual funds.

However, upon closer inspection, it becomes clear that IBKR offers more diverse asset offerings compared to E*TRADE. For starters, IBKR has recently added cryptocurrencies to its list of offerings which can be an attractive option for investors looking to add some digital currency exposure to their portfolio.

Moreover, IBKR also provides access to international exchanges and forex trading which can be beneficial for those who want exposure beyond just the U.S. market. This allows investors to take advantage of opportunities in other markets around the world.

In terms of mutual funds specifically, while both brokers offer no-load and no-fee options, IBKR actually offers nearly double the number compared to E*TRADE. This means that investors have more choices when it comes to selecting mutual funds without worrying about additional fees eating into their returns.

Overall, while both brokers offer typical investment options like stocks and bonds, if you’re looking for a wider variety of assets including cryptocurrencies or international markets then IBKR might be your best bet due its extensive offering list when compared with E*TRADE’s limited selection.

Fees and Commissions 

When it comes to choosing a broker, one of the most important factors to consider is cost. With so many different fees and charges associated with trading, it can be difficult to compare brokers apples-to-apples. In this section, we’ll take a detailed look at Interactive Brokers and E*TRADE, and compare their commission and fee schedules.

First up is Interactive Brokers (IBKR). One thing that stands out about IBKR’s pricing structure is its complexity. The actual costs you’ll pay will depend on your account type (IBKR Lite or IBKR Pro) as well as the country in which you’re trading. However, despite this complexity, IBKR does offer low commissions across 150 global markets with no added spreads, ticket charges, platform fees or account minimums.

For margin rates on $100k trades specifically, IBKR Lite offers a rate of 6.83%, while IBKR Pro offers an even lower rate of 5.33%. This puts them significantly ahead of E*TRADE in terms of margin rates.

On the other hand, E*TRADE has a much simpler pricing plan with no difference in fee schedules based on account type. However they do have reduced options contract fees for active traders making more than thirty trades per quarter at $0.50 per contract instead of the standard price $0.65 per contract paid by those who make fewer than twenty-nine trades quarterly.

In terms of margin rates for $100k trades specifically though,E*TRADE falls behind compared to Interactive Brokers’ competitive rates; offering a higher rate at 11.70%.

Overall when comparing both brokers’ commission and fee schedules, Interactive Brokers appears to offer better value for money with their low commissions and competitive margin rates. However, it’s important to consider other factors such as trading tools and customer support when making a final decision on which broker is right for you.

Regulation and Security 

As an investor, one of the most important factors to consider when choosing a brokerage firm is security. With so many options available, it can be overwhelming to determine which broker offers the best protection for your investments. In this section, we will compare Interactive Brokers (IBKR) and E*TRADE, in terms of their security standards.

Both IBKR and E*TRADE provide similar security measures such as two-factor authentication, biometric identification, and security guarantees. These features add an extra layer of protection to your account by requiring additional verification before allowing access.

Investor accounts at Interactive Brokers are protected by SIPC for up to $500,000 with a cash sublimit of $250,000. This means that if IBKR were to go bankrupt or become insolvent, investors would be covered up to these amounts for any losses incurred due to securities or cash held in their account. Additionally, excess SIPC coverage provides up to an additional $30 million with a cash sublimit of $900,000 subject to an aggregate limit of $150 million. Those who have accounts exceeding $1 million USD in value at IBKR may also opt-in for a digital security card.

E*TRADE is also a member of SIPC which protects customer accounts up to $500,000 for securities and cash (including $250,000 for cash only). However, E*TRADE clients will be covered under the Morgan Stanley excess of SIPC supplemental insurance policy which has an aggregate limit of $1 billion above and beyond the required insurance by SIPC.

Overall, both brokers offer strong protections against potential financial loss due to bankruptcy or insolvency through SIPC coverage. However, IBKR offers additional excess SIPC coverage for those with accounts exceeding $1 million USD in value and E*TRADE clients will be covered under the Morgan Stanley excess of SIPC supplemental insurance policy which has an aggregate limit of $1 billion above and beyond the required insurance by SIPC. Ultimately, when it comes to security your account is safe with either broker.

Customer Support

When it comes to investing, having access to reliable customer service is crucial. Both Interactive Brokers (IBKR) and E*TRADE offer 24-hour phone support for their clients. However, there are some differences in how they handle customer inquiries.

IBKR encourages investors to check out their “Quick Tips” section before contacting live agents for basic client questions. This helps streamline the process and ensures that more complex issues can be addressed by a representative who has specialized knowledge of the subject matter.

For formal inquiries or concerns about security and spam, IBKR recommends using their Message Center or email link on the support page instead of calling in directly.

In addition to phone support, IBKR also offers live chat services during specific hours throughout the week. While not available around-the-clock like phone support, this feature provides another avenue for clients to get quick answers from a representative without having to wait on hold.

E*TRADE also offers 24/7 phone support with access to representatives such as brokers, retirement specialists, financial consultants, active trader consultants, and product specialists. They even have extended hours compared to IBKR’s online chat services which are only available during limited times each week.

Both companies provide FAQ pages where clients can find answers to general questions without needing direct assistance from a representative.

Overall though when it comes down to it between these two competitors – while both offer great customer service options – E*TRADE has a slight advantage thanks its extended hours of phone support compared with IBKR’s limited availability.

Conclusion

Interactive Brokers and E*TRADE are key players in the financial brokerage industry, both of which provide a comprehensive range of trading products, account types, customizable platforms, functional trading apps, investor education resources, and low fees. Ultimately, the choice of platform depends on individual preferences. While E*TRADE is ideal for investors seeking a simple investment platform with room to grow into advanced features, Interactive Brokers is the top choice for those who want advanced trading tools and access to global markets.