E*Trade vs Alpaca Comparison: Fees, Features, and More (2026)

E*Trade and Alpaca are two leading discount brokerages offering commission-free stock and ETF trading. Use this head-to-head comparison table to evaluate fees, features, trading tools, and account options to help you decide which broker is right for you in 2026.

Head-to-Head Comparison: E*Trade vs Alpaca (2026)
Feature E*Trade Alpaca
Website https://us.etrade.com/home https://alpaca.markets/
Broker Type Online self-directed brokerage (Morgan Stanley; full-service advisors available) API-first self-clearing broker-dealer (Trading API for retail/algo; web dashboard available)
Trading: Stock & ETF? Yes Yes
ETF & Stock commission $0 online US-listed stocks/ETFs (OTC $6.95; other fees may apply) $0 commission (retail US stocks/ETFs); plus SEC/FINRA/CAT fees. Elite Smart Router: $0.0005–$0.004/share
Fractional Shares? Yes, select listed stocks/ETFs (up to 3 decimals, $5 min notional; expanding) Yes (from $1 notional; 2,000+ US equities)
Percent Allocations? No (Prebuilt templates with suggested allocations; Core Portfolios managed) Yes, via API
Crypto Trading? Yes; BTC, ETH, SOL via linked zerohash account for US individual brokerage clients. Yes (most US states via API/dashboard; 24/7)
Crypto Fees 0.50% of notional value (no spread/markup); charged by zerohash (E*TRADE receives a portion). Maker/taker 0.15%/0.25% (under $100k 30d vol) to 0%/0.10% ($100M+); on received asset
Options Trading? Yes Yes (Levels 1-3 equity/ETF; index options live)
Options Fee $0.65/contract ($0.50 with 30+ trades/quarter) plus regulatory/exchange fees. $0 commission retail equity/ETF options; index $0.50/contract + ORF/OCC/exchange pass-throughs
Bond Trading Available? Yes; 50,000+ bonds/CDs from many issuers. No (Broker API partners only; not Trading API/dashboard retail)
Receives payment for order flow (PFOF)? Yes (receives PFOF on NMS stocks, ETFs, and options). Yes (receives PFOF rebates)
Interface: Web trading? Yes; E*TRADE web/app and Power E*TRADE web/app/desktop. Yes web dashboard; no official mobile app (third-party/TradingView yes)
Desktop trading? Yes, Power E*TRADE Pro (Windows/Mac download) No
API Trading? Yes (Developer Platform REST API; unattended algo orders prohibited) Yes (Alpaca Trading API)
Mutual Funds: Offered? Yes No
Total Mutual Funds 5,000+ (6,000+ NTF listed on pricing) None
NTF Mutual Funds 6,000+ None
Non-NTF Fund Fee $0 online (no-load NTF); loads per prospectus N/A
Early Redemption Fee? Yes (no E*TRADE fee; fund fees may apply) N/A
Redemption Hold (Days) None (0 days); E*TRADE charges no short-term redemption fee (fund prospectus fees may apply) N/A
Early Redemption Fee $0 from E*TRADE; fund prospectus redemption fees may apply N/A
Accounts: Margin Accounts? Yes Yes; all accounts opened as margin (limited margin if equity under $2,000).
IRAs Offered? Yes (Traditional, Roth, SEP, SIMPLE, others) Yes; Traditional and Roth IRAs for US tax residents (Trading API). SEP-IRA in agreements.
HSAs Offered? No No
Money Market Sweep? Yes (Bank Deposit Program / BDP) Yes; opt-in FDIC Bank Sweep/High-Yield Cash for uninvested cash (variable APY, up to $1M FDIC).
CDs Offered? Yes No
Robo-Advisor: Offered Yes No
Robo-Advisor Service Core Portfolios N/A
Robo-Advisor Fees 0.30% annual advisory fee ($500 min.) N/A
Basics: Headquarters Arlington, VA San Mateo, CA
Year Founded 1982 2015
Clearing Firm Morgan Stanley Smith Barney LLC Self-clearing (Alpaca Clearing)
Local Branches? No No
New Account Minimum $0 $0

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