Platform Comparison

E*TRADE vs Tastytrade

Compare E*TRADE and Tastytrade 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
TT

Tastytrade

★4.4

The options-focused platform with low contract fees, excellent education, and DRIP support—ideal for dividend investors using covered call strategies.

Full Review

E*TRADE vs Tastytrade: Fees, Minimums & DRIP Compared

FeatureE*TRADETastytrade
Our Rating4.6/54.4/5
Trading Commissions$0$0
Account Minimum$0N/A
Fractional SharesYes (phased rollout)Yes ($5 min)
DRIPFreeFree
Research ToolsExcellentBasic
Best ForResearch-Driven Dividend InvestorsCovered Call Writers

E*TRADE vs Tastytrade: 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

Tastytrade

Pros

  • + Commission-free stock and ETF trading
  • + Low options pricing: $1 to open, $0 to close (capped at $10/leg)
  • + Fractional shares available for purchases and DRIP
  • + Free dividend reinvestment program
  • + Exceptional options education and content

Cons

  • - Very low 0.01% interest on uninvested cash
  • - No mutual funds, bonds, or forex trading
  • - Higher-than-average margin rates
  • - Steep learning curve for beginners

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

Choose E*TRADE if you...

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

Choose Tastytrade if you...

  • Are in Tastytrade's core audience: covered call writers

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

Compare Other Platforms

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

E*TRADE vs FidelityE*TRADE vs Charles SchwabE*TRADE vs M1 FinanceTastytrade vs FidelityTastytrade vs Charles SchwabTastytrade vs M1 Finance
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.