TD Ameritrade and ETrade were once two of the top independent brokerages in America. Both have been acquired — TD Ameritrade by Charles Schwab (completed 2023) and ETrade by Morgan Stanley (completed 2020). Here’s how the merged platforms compare today.
What Happened to TD Ameritrade and E*Trade?
| Event | Details |
|---|---|
| TD Ameritrade + Schwab | Schwab acquired TD Ameritrade for $26 billion. All accounts transitioned to Schwab by September 2023. The thinkorswim platform was preserved. |
| E*Trade + Morgan Stanley | Morgan Stanley acquired ETrade for $13 billion in 2020. ETrade continues as “E*Trade from Morgan Stanley” with its own platform and accounts. |
Schwab (ex-TD Ameritrade) vs E*Trade: Quick Comparison
| Feature | Schwab (thinkorswim) | E*Trade (Morgan Stanley) |
|---|---|---|
| Stock/ETF commissions | $0 | $0 |
| Options (per contract) | $0.65 | $0.65 ($0.50 for 30+ trades/qtr) |
| Mutual funds | Thousands (many NTF) | Thousands (many NTF) |
| Lowest index fund ER | 0.02% (SWPPX) | N/A (no proprietary funds) |
| Fractional shares | ✅ (S&P 500 stocks) | ❌ |
| Cash yield | 4.15% (Value Advantage) | 4.05% (sweep options) |
| Physical branches | 400+ | Limited (Morgan Stanley offices) |
| Mobile app | 4.7/5 (iOS) | 4.6/5 (iOS) |
| Desktop platform | thinkorswim (excellent) | Power E*Trade (excellent) |
| Robo-advisor | Intelligent Portfolios (free) | Core Portfolios ($500 min, 0.30%) |
| SIPC insured | Yes ($500K) | Yes ($500K) |
Trading Fees
| Fee | Schwab | E*Trade |
|---|---|---|
| Stock/ETF trades | $0 | $0 |
| Options (per contract) | $0.65 | $0.65 ($0.50 with 30+ trades/qtr) |
| Futures (per contract) | $2.25 | $1.50 |
| Mutual funds (NTF) | $0 | $0 |
| Mutual funds (transaction fee) | $49.95 | $19.99 |
| Bonds (Treasury, new issue) | $0 | $0 |
| Bonds (secondary market) | $1/bond | $1/bond |
| Broker-assisted trade | $25 | $25 |
| Margin rate (base) | 13.00% | 13.70% |
| Wire transfer (out) | $0 (online) | $25 |
Winner: E*Trade for active options traders (volume discount to $0.50) and futures ($1.50 vs $2.25). Schwab for mutual fund investors ($0 on proprietary index funds).
Trading Platforms
Schwab thinkorswim
| Feature | Details |
|---|---|
| Platform type | Desktop, web, mobile |
| Charting | Advanced (400+ studies) |
| Options analysis | Excellent (probability tools, Greeks) |
| Paper trading | ✅ (paperMoney) |
| Screeners | Stock, options, ETF, bond |
| Custom scripting | ✅ (thinkScript) |
| Level 2 data | ✅ (free) |
| Heat maps | ✅ |
| News | Real-time (CNBC, Benzinga) |
| Social/community | ✅ (in-app chat) |
ETrade Power ETrade
| Feature | Details |
|---|---|
| Platform type | Web, mobile |
| Charting | Advanced (100+ studies) |
| Options analysis | Excellent (spectral analysis, P/L) |
| Paper trading | ✅ |
| Screeners | Stock, options, ETF, mutual fund |
| Custom scripting | Limited |
| Level 2 data | ✅ (free) |
| Heat maps | ❌ |
| News | Real-time (Reuters, MarketWatch) |
| Options strategy builder | ✅ (excellent) |
Platform Comparison
| Feature | thinkorswim | Power E*Trade |
|---|---|---|
| Overall depth | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ |
| Ease of use | Steep learning curve | More intuitive |
| Charting indicators | 400+ | 100+ |
| Custom scripting | ✅ (thinkScript) | Limited |
| Options analysis | Excellent | Excellent |
| Best for | Active traders, options pros | Options traders, visual learners |
Winner: thinkorswim (Schwab) — more indicators, custom scripting, and deeper customization. Power E*Trade is more approachable and still very strong for options.
Account Types
| Account | Schwab | E*Trade |
|---|---|---|
| Individual brokerage | ✅ | ✅ |
| Joint brokerage | ✅ | ✅ |
| Traditional IRA | ✅ | ✅ |
| Roth IRA | ✅ | ✅ |
| SEP IRA | ✅ | ✅ |
| SIMPLE IRA | ✅ | ✅ |
| Solo 401(k) | ✅ | ❌ |
| Inherited IRA | ✅ | ✅ |
| 529 plan | ✅ | ❌ |
| HSA | ✅ | ❌ |
| Trust account | ✅ | ✅ |
| Custodial (UGMA/UTMA) | ✅ | ✅ |
| Estate account | ✅ | ✅ |
Winner: Schwab — more account types including solo 401(k), 529, and HSA.
Index Funds and ETFs
| Category | Schwab Fund | ER | E*Trade Option |
|---|---|---|---|
| S&P 500 | SWPPX | 0.02% | VOO or IVV (0.03%) |
| Total US Market | SWTSX | 0.03% | VTI (0.03%) |
| International | SWISX | 0.06% | VXUS (0.08%) |
| US Bond | SWAGX | 0.04% | BND (0.03%) |
Schwab has its own ultra-low-cost index funds. E*Trade relies on third-party funds (Vanguard, iShares, etc.), which are still very cheap but not proprietary.
Winner: Schwab — proprietary index funds at 0.02-0.06% give it a slight edge.
Research and Education
| Feature | Schwab | E*Trade |
|---|---|---|
| Research providers | 15+ (Morningstar, CFRA, MarketEdge) | 10+ (Morgan Stanley, TipRanks) |
| Analyst reports | ✅ | ✅ (Morgan Stanley research) |
| Screeners | Comprehensive | Comprehensive |
| Learning center | Comprehensive | Good |
| Webinars | Regular | Regular |
| Trading education | Extensive | Good |
| Morgan Stanley research | ❌ | ✅ |
Winner: Tie — Schwab has more third-party research providers. E*Trade has exclusive access to Morgan Stanley equity research, which is highly regarded.
Managed Accounts and Robo-Advisors
| Feature | Schwab Intelligent Portfolios | E*Trade Core Portfolios |
|---|---|---|
| Management fee | 0% | 0.30% |
| Minimum balance | $5,000 | $500 |
| Tax-loss harvesting | ✅ (over $50K) | ❌ |
| Cash allocation | 6-30% (high) | Low |
| Rebalancing | Automatic | Automatic |
| Human advisor | Premium ($30/mo + $300 setup) | Available (higher tiers) |
Higher-Tier Wealth Management
| Tier | Schwab | E*Trade / Morgan Stanley |
|---|---|---|
| Robo + human | Intelligent Portfolios Premium ($25K) | Not available at E*Trade level |
| Full wealth management | Schwab Private Client ($1M+) | Morgan Stanley Financial Advisor ($250K+) |
| Fee | 0.80-1.00% | Varies (typically 1.00-1.50%) |
Winner: Schwab for robo-advising (0% fee is unbeatable). E*Trade/Morgan Stanley for access to Morgan Stanley’s full wealth management at higher asset levels.
Cash and Banking
| Feature | Schwab | E*Trade |
|---|---|---|
| Cash yield (default sweep) | 0.48% | 0.01-0.35% |
| Best money market option | 4.15% (SWVXX) | 4.05% (sweep options) |
| Checking account | ✅ (Schwab Bank) | ✅ (E*Trade Bank) |
| Debit card | ✅ | ✅ |
| ATM reimbursement | Unlimited worldwide | ❌ |
| Bill pay | ✅ | ✅ |
| Mobile check deposit | ✅ | ✅ |
| Foreign transaction fee | 0% | 1% |
Winner: Schwab — unlimited ATM rebates worldwide and 0% foreign transaction fee are significant advantages.
Customer Service
| Factor | Schwab | E*Trade |
|---|---|---|
| Phone support | 24/7 | Extended hours |
| Physical branches | 400+ | Limited (Morgan Stanley offices) |
| Chat | In-app | In-app |
| J.D. Power 2025 | 828 | 800 |
| Dedicated trading desk | ✅ | ✅ |
Winner: Schwab — 24/7 support, 400+ branches, and higher customer satisfaction.
Who Should Choose Schwab (ex-TD Ameritrade)?
✅ You want thinkorswim — the premier trading platform
✅ You want low-cost proprietary index funds
✅ You want 400+ physical branches for in-person help
✅ You want a free robo-advisor (Intelligent Portfolios)
✅ You want unlimited worldwide ATM rebates
✅ You want 24/7 phone support
✅ You need a solo 401(k), HSA, or 529 plan
✅ You want the most comprehensive do-everything brokerage
Who Should Choose E*Trade (Morgan Stanley)?
✅ You want discounted options commissions ($0.50/contract with volume)
✅ You want Morgan Stanley equity research
✅ You want Power E*Trade for a more visual options experience
✅ You want access to Morgan Stanley wealth management (higher tiers)
✅ You trade futures frequently ($1.50 vs $2.25)
✅ You want a $500 minimum robo-advisor
✅ You want lower transaction-fee mutual fund costs ($19.99 vs $49.95)
Bottom Line
| Category | Winner |
|---|---|
| Trading platform | Schwab (thinkorswim) |
| Options trading | Tie (Schwab depth vs E*Trade volume discount) |
| Index funds | Schwab (proprietary low-cost) |
| Robo-advisor | Schwab (free) |
| Research | Tie (different strengths) |
| Branches | Schwab (400+ vs limited) |
| Customer service | Schwab (24/7, higher ratings) |
| Cash management | Schwab (ATM rebates, 0% FX) |
| Account variety | Schwab (more types) |
| Wealth management | E*Trade / Morgan Stanley (premium tier) |
| Best for most investors | Schwab |
Schwab (incorporating TD Ameritrade’s thinkorswim) is the better choice for most investors and traders. It offers the most complete package: a world-class trading platform, low-cost index funds, free robo-advising, and 400+ branches. E*Trade is best for active options traders who benefit from the volume discount, and investors who want eventual access to Morgan Stanley’s premium wealth management services. For long-term, buy-and-hold investors, also consider Fidelity and Vanguard — both offer similarly excellent service with even lower fund costs.
Related: Fidelity vs Schwab | Vanguard vs Fidelity | Robinhood vs Webull | Index Funds vs ETFs | Active vs Passive Investing
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