Platform Comparison

E*TRADE vs Interactive Brokers

Compare E*TRADE and Interactive Brokers on fees, DRIP, fractional shares and research for dividend investing.

Higher Rated
ET

E*TRADE

★4.6

Morgan Stanley's full-service brokerage pairs $0 commissions and free dividend reinvestment with institutional-grade research—and in 2026 it finally added direct fractional shares and crypto trading.

Full Review
IB

Interactive Brokers

★4.5

The professional-grade platform with access to 150+ global markets, industry-leading margin rates, and powerful screening tools.

Full Review

E*TRADE vs Interactive Brokers: Fees, Minimums & DRIP Compared

FeatureE*TRADEInteractive Brokers
Our Rating4.6/54.5/5
Trading Commissions$0$0 (Lite)
Account Minimum$0$0
Fractional SharesYes (phased rollout)10,000+ stocks
DRIPFreeSmall fee
Research ToolsExcellentGood
Best ForResearch-Driven Dividend InvestorsInternational Dividend Investors

E*TRADE vs Interactive Brokers: Pros and Cons

E*TRADE

Pros

  • + Commission-free trading on stocks and ETFs
  • + Free dividend reinvestment (DRIP) with fractional shares, enrollable per security
  • + Industry-leading research from Morgan Stanley, Morningstar, and MarketEdge
  • + Direct fractional-share purchases now rolling out (started Q2 2026)
  • + Crypto trading live at a 0.50% fee—cheaper than Coinbase, Schwab, and Fidelity

Cons

  • - Fractional-share purchases are still in a phased rollout—not every stock is eligible yet
  • - No dollar-based orders yet; fractional buys are share-quantity only
  • - Low interest rate on uninvested cash
  • - Website navigation can be confusing

Interactive Brokers

Pros

  • + Access to 150+ markets across 33 countries in 27 currencies
  • + Commission-free US stock and ETF trading with IBKR Lite
  • + Industry-leading low margin rates (5.83% Pro, 6.83% Lite)
  • + Fractional shares on 10,000+ US, Canadian, and European stocks
  • + Powerful dividend yield screeners with 50+ factors

Cons

  • - Steep learning curve—platforms built for professionals
  • - DRIP charges a small commission (unlike most competitors)
  • - Account-level DRIP only—can't select specific stocks
  • - Customer service wait times can be long during peak hours

Which Is Better for Dividend Investors: E*TRADE or Interactive Brokers?

Choose E*TRADE if you...

  • Are in E*TRADE's core audience: research-driven dividend investors
  • Prefer a higher-rated overall platform

Choose Interactive Brokers if you...

  • Are in Interactive Brokers's core audience: international dividend investors

Want the full breakdown of fees, DRIP, and research tools? Read our E*TRADE review and Interactive Brokers review.

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Investment Disclaimer

Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.