Platform Comparison

E*TRADE vs Charles Schwab

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

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
Higher Rated
CS

Charles Schwab

★4.8

A trusted full-service broker with zero commissions, 400+ branches, and powerful thinkorswim trading platform.

Full Review

E*TRADE vs Charles Schwab: Fees, Minimums & DRIP Compared

FeatureE*TRADECharles Schwab
Our Rating4.6/54.8/5
Trading Commissions$0$0
Account Minimum$0$0
Fractional SharesYes (phased rollout)S&P 500 only
DRIPFreeFree
Research ToolsExcellentExcellent
Best ForResearch-Driven Dividend InvestorsBeginners Who Want Support

E*TRADE vs Charles Schwab: 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

Charles Schwab

Pros

  • + Zero commissions on stocks, ETFs, and options
  • + No account minimums or inactivity fees
  • + 24/7 customer support with knowledgeable representatives
  • + 400+ physical branches for in-person help
  • + Free automatic dividend reinvestment (DRIP)

Cons

  • - Fractional shares limited to S&P 500 stocks with $5 minimum
  • - Mobile app can feel clunky compared to newer brokers like Robinhood
  • - DRIP is not enabled by default—you must turn it on manually
  • - Robo-advisor requires $5,000 minimum to start

Which Is Better for Dividend Investors: E*TRADE or Charles Schwab?

Choose E*TRADE if you...

  • Are in E*TRADE's core audience: research-driven dividend investors

Choose Charles Schwab if you...

  • Are in Charles Schwab's core audience: beginners who want support
  • Prefer a higher-rated overall platform

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

Compare Other Platforms

Not sure these are the right fit? Explore more comparisons.

E*TRADE vs FidelityE*TRADE vs M1 FinanceE*TRADE vs TD AmeritradeCharles Schwab vs FidelityCharles Schwab vs M1 FinanceCharles Schwab vs TD Ameritrade
View All Platforms

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.