Interactive Brokers vs E*Trade Comparison: Fees, Features, and More (2026)
Interactive Brokers and E*Trade 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.
| Feature | Interactive Brokers | E*Trade |
|---|---|---|
| Website | https://www.interactivebrokers.com/ | https://us.etrade.com/home |
| Broker Type | Self-directed online discount broker | Online self-directed brokerage (Morgan Stanley; full-service advisors available) |
| Trading: Stock & ETF? | Yes | Yes |
| ETF & Stock commission | IBKR Lite: $0 US-listed stocks/ETFs (US residents); IBKR Pro: $0.005/share fixed (min $1) or $0.0005–$0.0035/share tiered (min $0.35) | $0 online US-listed stocks/ETFs (OTC $6.95; other fees may apply) |
| Fractional Shares? | Yes (eligible US/CA/EU stocks & ETFs, from $1) | Yes, select listed stocks/ETFs (up to 3 decimals, $5 min notional; expanding) |
| Percent Allocations? | Yes (TWS Rebalance Portfolio sets custom target %) | No (Prebuilt templates with suggested allocations; Core Portfolios managed) |
| Crypto Trading? | Yes (spot crypto via Paxos/Zero Hash for eligible US IB LLC clients; permissions required; also futures/ETPs) | Yes; BTC, ETH, SOL via linked zerohash account for US individual brokerage clients. |
| Crypto Fees | 0.12%–0.18% of trade value (monthly volume tiers), USD 1.75 min/order (capped at 1% of value); no added spreads/markups/custody fees; possible $0.15/mo Paxos fee | 0.50% of notional value (no spread/markup); charged by zerohash (E*TRADE receives a portion). |
| Options Trading? | Yes | Yes |
| Options Fee | US: Lite $0.65/contract ($1 min; Pro rates after 1k contracts/mo); Pro $0.15–$0.65/contract (volume/premium tiers), $1 min/order + exchange/reg/clearing fees | $0.65/contract ($0.50 with 30+ trades/quarter) plus regulatory/exchange fees. |
| Bond Trading Available? | Yes (US Treasuries, corporates, munis, CDs, 1M+ global bonds) | Yes; 50,000+ bonds/CDs from many issuers. |
| Receives payment for order flow (PFOF)? | Sometimes (Lite receives PFOF on US stocks/options; Pro generally avoids via SmartRouting) | Yes (receives PFOF on NMS stocks, ETFs, and options). |
| Interface: Web trading? | Yes (Client Portal web; IBKR Mobile and GlobalTrader apps) | Yes; E*TRADE web/app and Power E*TRADE web/app/desktop. |
| Desktop trading? | Yes; Trader Workstation (TWS) and IBKR Desktop. | Yes, Power E*TRADE Pro (Windows/Mac download) |
| API Trading? | Yes; TWS API and Web API for retail algorithmic trading. | Yes (Developer Platform REST API; unattended algo orders prohibited) |
| Mutual Funds: Offered? | Yes | Yes |
| Total Mutual Funds | 50,000+ | 5,000+ (6,000+ NTF listed on pricing) |
| NTF Mutual Funds | 20,000+ | 6,000+ |
| Non-NTF Fund Fee | Lesser of 3% of trade value or USD 14.95 per transaction (US). | $0 online (no-load NTF); loads per prospectus |
| Early Redemption Fee? | Yes (no IBKR fee); fund companies may charge per prospectus. | Yes (no E*TRADE fee; fund fees may apply) |
| Redemption Hold (Days) | None by IBKR (0 days); fund prospectus may impose. | None (0 days); E*TRADE charges no short-term redemption fee (fund prospectus fees may apply) |
| Early Redemption Fee | $0 from IBKR; funds may charge per prospectus. | $0 from E*TRADE; fund prospectus redemption fees may apply |
| Accounts: Margin Accounts? | Yes (Cash, Margin, or Portfolio Margin; typically $2,000 equity for margin). | Yes |
| IRAs Offered? | Yes (Traditional, Roth, SEP, SIMPLE, Inherited, Rollover). | Yes (Traditional, Roth, SEP, SIMPLE, others) |
| HSAs Offered? | No | No |
| Money Market Sweep? | Yes (Insured Bank Deposit Sweep Program). | Yes (Bank Deposit Program / BDP) |
| CDs Offered? | Yes (brokered CDs). | Yes |
| Robo-Advisor: Offered | Yes | Yes |
| Robo-Advisor Service | Interactive Advisors | Core Portfolios |
| Robo-Advisor Fees | 0.10%–0.75% AUM/year (varies by portfolio; IA 0.10%–0.20%, managers 0.25%–0.75%); no commissions | 0.30% annual advisory fee ($500 min.) |
| Basics: Headquarters | Greenwich, CT | Arlington, VA |
| Year Founded | 1977 | 1982 |
| Clearing Firm | Self-clearing | Morgan Stanley Smith Barney LLC |
| Local Branches? | No | No |
| New Account Minimum | $0 | $0 |
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