E*TRADE vs Vanguard 2024 (2024)

Comparing brokers side by side is no easy task. We spend hundreds of hours each year testing the platforms, mobile apps, trading tools and general ease of use among online brokerages, as well as comparing commissions and fees, to find the best online broker.

Though many U.S. brokers offer basic trading features, such as an app, charting tools, stock research and educational content, the depth of those features can vary widely. Let's compare E*TRADE vs Vanguard.

In stock trading, the more you know, the better you’ll do. Taking advantage of resources like articles, webinars, videos and interactive elements is a great way to shorten the learning curve. In our analysis, we examine the availability of several different types of educational materials.

For 2024, our review finds that E*TRADE offers more comprehensive new investor education for beginning investors than Vanguard. E*TRADE offers investors access to Paper Trading, Videos, Education (Stocks), Education (ETFs), Education (Options), Education (Mutual Funds), Education (Bonds) and Education (Retirement), while Vanguard offers investors access to Videos, Education (Stocks) and Education (Retirement).

E*TRADE and Vanguard charge the same amount for regular stock trades, $0.00. Option contracts are pricier at Vanguard, costing $1.00 per contract versus $0.65 per contract at E*TRADE. For futures, E*TRADE charges $1.50 per contract and Vanguard charges (Not offered) per contract. For a deeper dive, see our best brokers for free stock trading or options trading guides

Looking at a full range of investment options, including order types and international trading, our research has found that E*TRADE offers a more comprehensive offering than Vanguard. E*TRADE ranks #4 out of 18 brokers for our Investment Options category, while Vanguard ranks #9.

E*TRADE offers investors access to Stock Trading, Options Trading, OTC Stocks, Mutual Funds, Futures Trading and Advisor Services, while Vanguard offers investors access to Stock Trading, Options Trading, OTC Stocks, Mutual Funds and Advisor Services. Neither have Fractional Shares and Forex Trading Looking at Mutual Funds, Vanguard trails E*TRADE in its offering of no transaction fee (NTF) mutual funds, with E*TRADE offering 4377 and Vanguard offering .

In our analysis of top U.S. brokerages, we research whether each broker offers the ability to trade cash cryptocurrency, such as bitcoin and ethereum. Though crypto has risen steadily in popularity, availability still varies from broker to broker. Our review finds that neither E*TRADE and Vanguard offer crypto trading.

To compare the day trading platforms of E*TRADE and Vanguard, we focused on trading tools and functionality across both web and desktop-based platforms. Popular day trading platform tools include streaming real-time quotes, stock alerts, trading hotkeys, direct market routing, streaming time and sales, customizable watch lists, backtesting, and fully functional charting packages, among many others. For day trading, E*TRADE offers a better experience.

After testing 25 features across the stock trading apps of E*TRADE and Vanguard, we found E*TRADE to be better overall. The best stock market apps are easy to use, have excellent design, and deliver a fully featured online trading experience. E*TRADE ranks #2 out of 18 brokers, while Vanguard ranks #18.

E*TRADE Trading App Gallery

Vanguard Trading App Gallery

For research, E*TRADE offers superior market research than Vanguard. E*TRADE ranks #3 and Vanguard ranks #9.

Over the years, we've found that the best brokers provide rich market commentary, a variety of third-party research reports, and thorough quote screens that are not just easy to navigate, but that also include a comprehensive selection of fundamental data. Robust stock, ETFs, and mutual fund screeners are also must-haves for trade idea generation.

E*TRADE requires a minimum deposit of $0.00, while Vanguard requires a minimum deposit of $0.00. From our testing, we found that SoFi is the only broker that requires a minimum deposit.

E*TRADE charges 14.2% for accounts under $25,000 while Vanguard charges a margin rate of 13.75%. The industry average of the 18 brokers we track is 9%.

Fractional shares are not offered by either broker. Our research has found that 39% of brokers offer fractional shares investing. Fractional shares allow traders to buy a part of a whole share of stock. For example, if Amazon is trading at $1,000, you could buy half a share for $500.

Both E*TRADE and Vanguard allow you to trade penny stocks. E*TRADE charges $6.95 per trade while Vanguard charges $0.00. Penny stocks are companies whose shares trade for under $5 and are listed over the counter (OTC). For brokers that do offer penny stock trades, the average commission is $3.

Online banking can be a benefit for investors, and some brokerages do provide banking services to customers. Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans are offered by E*TRADE while Vanguard offers neither of these.

StockBrokers.com partners with customer experience research group Confero to conduct phone tests from locations across the United States to thoroughly evaluate the quality and speed of brokerage customer service. (Read more about How We Test.) Here are the results of our current testing.

E*TRADE was rated 8th out of 13 brokers, with an overall score of 7.87 out of 10.

Vanguard was rated 6th out of 13 brokers, with an overall score of 8.33 out of 10.

E*TRADE is a top-performing broker whose highlights include $0 trades, two excellent mobile apps and the Power E*TRADE platform. Crypto, however, is not available.

In the 2024 StockBrokers.com Annual Awards, E*TRADE was ranked No. 1 for Investor App and Web Trading Platform. E*TRADE also placed among Best in Class for Commissions & Fees, Platforms & Tools, Research, Mobile Trading Apps, Investment Options, Education, Ease of Use, Bank Brokerage, Beginners, Futures Trading, IRA Accounts, Options Trading, Penny Stock Trading, High Net Worth Investors, and Overall.

Vanguard is aimed squarely at buy-and-hold investors, and its platform reflects that focus. Vanguard is known for its low-cost funds, and the investment platform is really built for those looking to invest solely in mutual funds and ETFs.