Platform Comparison

E*TRADE vs Interactive Brokers

Detailed side-by-side comparison to help you choose the best platform for dividend investing

Higher Rated
ET

E*TRADE

★4.6

A full-service brokerage backed by Morgan Stanley, offering exceptional research, education, and five trading platforms for every skill level.

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

Feature Comparison

FeatureE*TRADEInteractive Brokers
Our Rating4.6/54.5/5
Trading Commissions$0$0 (Lite)
Account Minimum$0$0
Fractional SharesDRIP only10,000+ stocks
DRIPFreeSmall fee
Research ToolsExcellentGood
Best ForResearch-Focused InvestorsInternational Dividend Investors

Pros & Cons

E*TRADE

Pros

  • + Commission-free trading on stocks and ETFs
  • + Industry-leading research from Morgan Stanley, Morningstar, and MarketEdge
  • + Free dividend reinvestment with fractional share support
  • + Five trading platforms from beginner-friendly to professional
  • + 5,000+ no-transaction-fee mutual funds

Cons

  • - No direct fractional share purchases (only through DRIP)
  • - Website navigation can be confusing
  • - Low interest rate on uninvested cash
  • - No cryptocurrency trading (coming 2026)

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 Platform is Right for You?

Choose E*TRADE if you...

  • Want research-focused investors focused features
  • Prefer a higher-rated overall platform

Choose Interactive Brokers if you...

  • Want international dividend investors focused features

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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.