In this article, we will discuss the 12 best alternatives to E*TRADE.
E*TRADE: A Powerful Trading Platform
E*TRADE Securities LLC is a subsidiary of Morgan Stanley (NYSE:MS) that provides financial services to retail customers and offers an online electronic trading platform called E*TRADE, along with a mobile app to trade financial assets including stocks, options, ETFs, and mutual funds. E*TRADE offers $0 commission for online US-listed stocks, ETFs, mutual funds, and options trade, whereas the standard options contract fee is $0.65 per contract or $0.50 per contract for an investor who executes at least 30 trades per quarter. With E*TRADE Investors can choose either self-directed accounts where they have full control over their investment decisions or opt for professionally managed portfolios for an annual advisory fee of as low as 0.30%. E*TRADE also offers bank accounts to investors, powered by Morgan Stanley Private Bank which is fully integrated with E*TRADE accounts and helps investors securely move money between bank accounts and E*TRADE within a few clicks. Morgan Stanley Private Bank offers savings accounts with competitive Annual Percentage Yields (APYs) ranging from 1.5% to 4.25%, depending on the account balance. Additionally, Morgan Stanley Private Bank provides a Line of Credit (LOC) that allows investors to borrow at affordable interest rates against eligible assets in their portfolio. This enables investors to access funds without selling their investments. The application process is simple and can be completed online within minutes. The interest rate on the LOC is variable, determined by an index comprising the 30-day rolling compounded average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. A $10 processing fee is applicable for LOC payments made by check, along with other bank fees.
Largest Companies offering an Alternative Trading Platform
Some of the largest companies that offer trading platforms include JPMorgan Chase & Co. (NYSE:JPM), Robinhood Markets, Inc. (NASDAQ:HOOD), and Interactive Brokers Group, Inc. (NASDAQ:IBKR).
Chase U.S. also known as J.P. Morgan Self-Directed Investing, is a trading platform offered by JPMorgan Chase & Co. (NYSE:JPM) which offers a wide range of investment options and provides access to J.P. Morgan’s research and market insights. On May 3, Bloomberg reported that JPMorgan Chase & Co. (NYSE:JPM) has released a new investment product called IndexGPT, which utilizes the capabilities of OpenAI’s GPT 4 multimodal large language model. IndexGPT creates thematic investment baskets by generating keywords associated with specific themes and identifies relevant companies through natural language processing. IndexGPT can be used to automate the creation of thematic indexes, which focus on emerging trends rather than traditional industry sectors or company fundamentals. The launch of IndexGPT indicates a growing trend of incorporating artificial intelligence into finance, commenting on the event, Rui Fernandes, JPMorgan Chase & Co.’s (NYSE:JPM) head of markets trading structuring said:
“It’s about being able to select a broader range of stocks that are not necessarily the obvious companies that everyone already knows about. We are constantly looking for ways in which we can improve all our offerings, from equity volatility products to commodity momentum products. But we want to do it in a gradual, thoughtful, progressive way.”
Robinhood Markets, Inc. (NASDAQ:HOOD) offers a user-friendly platform that can be used to trade stocks, bonds, real estate, ETFs, and cryptocurrencies. On March 19, Robinhood Markets, Inc. (NASDAQ:HOOD) officially launched its services in the United Kingdom and enrolled all eligible customers from the waitlist. Robinhood Markets, Inc. (NASDAQ:HOOD) also launched support for several new features including web support, and a $7 to $175 reward for signing up or referral to friends and family. Robinhood Markets, Inc. (NASDAQ:HOOD) offers several key incentives compared to typical brokers in the United Kingdom, including commission-free trading, no foreign exchange fees, options trading, 5% AER (Annual Equivalent Rate) on uninvested cash, and access to over 6,000 global companies. Commenting on the event Jordan Sinclair, President of Robinhood UK said:
“We’ve been actively gathering feedback and engaging with customers since our waitlist launch at the end of last year, and have been so encouraged by the reception we’ve received thus far. Today’s general availability marks the start of a new chapter for Robinhood, and we’re excited to continue challenging the status quo by delivering more local products and services that resonate with our customers and meet their needs.”
On March 26, Robinhood Markets, Inc. (NASDAQ:HOOD) announced the Robinhood Gold Card, a credit card that will be available exclusively for Robinhood Gold members. Robinhood Gold Card offers several advantages, including no annual fee and no foreign transaction fees. It provides a competitive cashback rewards program, with 3% cash back on all categories and 5% cash back on travel bookings through the Robinhood travel portal. Additionally, users can redeem their reward points for various options, including travel, gift cards, and shopping at major retailers. Furthermore, points can be converted to cash and instantly transferred to the user’s Robinhood brokerage account for investment, earning interest, or withdrawal. Robinhood Markets, Inc.’s (NASDAQ:HOOD) Co-Founder and CEO Vlad Tenev unveiled the product and said:
“There’s always been special perks and opportunities reserved for the wealthy that make them even richer. It’s why we started Robinhood and gave our customers access to features like commission free trading and the 24 Hour Market. The New Gold Standard bring us one step closer to the goal of giving everyone better access to the financial system,”
Interactive Brokers Group, Inc. (NASDAQ:IBKR) operates a trading platform called “IBKR”, which is one of the largest trading platforms in the United States in terms of daily average revenue trades. Interactive Brokers Group, Inc.’s (NASDAQ:IBKR) platform offers stocks, options, futures, ETFs, futures options, forex, bonds, funds, and some cryptocurrencies. On April 25, Interactive Brokers Group, Inc. (NASDAQ:IBKR) announced a significant extension in trading hours for US Treasury bonds on the Interactive Brokers Group, Inc.’s (NASDAQ:IBKR) platform. Investors around the world can now trade US Treasury bonds, which are highly sought after by investors and are considered one of the safest investment options, for 22 hours each day, with the trading session closing at 5:00 pm Eastern Time and reopening at 8:00 pm Eastern Daylight Time, continuing until 5:00 pm the following day. This expansion aims to cater to Interactive Brokers’ global clientele, enabling them to trade US Treasuries during their local trading hours and respond promptly to global market news and economic events, regardless of their time zone. Commenting on the event Thomas Frank, Executive Vice President of Interactive Brokers Group, Inc. (NASDAQ:IBKR) said:
“The extension of trading hours for US Treasury bonds represents a significant enhancement to our offerings. It is part of an ongoing effort to expand our bond offering by adding new coverage, products, venues and liquidity. We aim to provide our clients with the most flexible and comprehensive trading environment possible. With clients in over 200 countries and territories, it’s essential that we accommodate their needs and provide opportunities to trade on a schedule that suits them best, especially in a market as crucial as that of US Treasuries.”
E*TRADE is one the most comprehensive financial trading platforms and provides innovative solutions to its customers. However, many other financial trading platforms also offer comparable features. With that in context, here is the list of the 12 best alternatives to E*TRADE.
A financial trader sitting at a desk with an open laptop surrounded by data on the stock market.
Our Methodology
To come up with the 12 best alternatives to E*TRADE, we employed a consensus approach. We consulted more than 10 articles on the internet to find the best alternatives to E*TRADE. Of them, we picked platforms that appeared in 50% of our sources. We then checked the total number of reviews and average rating of their apps on the Google Play Store and ranked them in ascending order of the number of reviews. Here are the 12 best alternatives to E*TRADE.
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12 Best Alternatives to E*TRADE
12. Zacks Trade
Number of Reviews: 6,210
Average Rating: 4.4
Zacks Trade was founded in 1978, by Len Zacks and is known for its research, stock ratings, analysis, and education to investors. Zacks Trade’s services are on par when compared to E*TRADE and is ranked 12 on our list of best alternatives to E*TRADE. Zacks Trade has 6,210 reviews with an average rating of 4.4.
11. Merrill Edge
Number of Reviews: 7,182
Average Rating: 3.2
Merrill Edge is a trading platform by Merrill Lynch, Pierce, Fenner & Smith Inc (MLPF&S), and other subsidiaries of Bank of America Corporation (NYSE:BAC). Merrill Edge has a feature that notifies users when an asset’s price approaches targets. Merrill Edge has 7,182 reviews, with an average rating of 3.2.
10. Firstrade
Number of Reviews: 8,136
Average Rating: 4.5
Firstrade is a easy-to-use platform offered by Firstrade Securities Inc. which is a privately held financial services company that was founded in 1985. Firstrade is known for its competitive pricing and a range of research and educational materials, especially for options. Firstrade has 8,136 reviews and maintains an average rating of 4.5 stars.
9. Vanguard
Number of Reviews: 9,434
Average Rating: 3.5
Vanguard is a well-known trading platform that offers a wide range of mutual funds, ETFs, and retirement accounts. Vanguard is known for its low-cost index funds and passive investing approach which appeals to investors who are seeking low-cost and long-term investment solutions and strategies. With 9,434 reviews, Vanguard maintains an average rating of 3.2.
8. TD Ameritrade
Number of Reviews: 14,332
Average Rating: 3.8
TD Ameritrade offers a wide range of investment products, including stocks, options, ETFs, mutual funds, and fixed-income securities. TD Ameritrade is known for its comprehensive trading platform called “Thinkorswim”, which offers advanced charting and research tools, along with customizable filters. TD Ameritrade offers similar investment products and trading tools compared to E*TRADE, has 14,332 reviews with an average rating of 3.8, and is one of the best alternatives to E*TRADE.
7. Moomoo
Number of Reviews: 22,414
Average Rating: 4.5
Moomoo is an investment and trading platform offered by Moomoo Inc. which is a subsidiary of Futu Holdings Ltd. (NASDAQ:FUTU). Moomoo collaborates with financial exchanges such as NYSE, NASDAQ, and Chicago Board Options Exchange to educate investors on financial products, trading, and industry insights. Moomoo has over 21 million users and offers easy-to-use tools, data, and insights. Moomoo is one of the best alternatives to E*TRADE and has 22,414 reviews with an average rating of 4.5.
6. Interactive Brokers
Number of Reviews: 32,539
Average Rating: 4.7
Interactive Brokers is a globally recognized trading platform by Interactive Brokers Group, Inc. (NASDAQ:IBKR) and offers a wide range of financial products, including stocks, options, futures, and forex. Compared to E*TRADE, Interactive Brokers provides advanced trading tools, low commission fees, and global market access. Interactive Brokers has 2,539 reviews maintains an average rating of 4.7 and is one of the best alternatives to E*TRADE.
5. Fidelity Investments
Number of Reviews: 129,101
Average Rating: 4.4
Fidelity Investments is a well-established trading platform by Fidelity National Financial, Inc. (NYSE:FNF) and offers a wide range of mutual funds, ETFs, retirement accounts, and personalized financial advice. Fidelity Investments offers access to Forex and dozens of international exchanges. As one of the best alternatives to E*TRADE, Fidelity Investments has 129,101 reviews and maintains an average rating of 4.4