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E*TRADE vs TradeZero (2024)
E*TRADE or TradeZero—which is better in 2024? Compare margin accounts, online trading fees, stock broker extended hours, and differences.
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Overview of TradeZero and E*Trade
E*Trade is a well-known brokerage with memorable TV ads. TradeZero, on the other hand, is less recognized. Could E*Trade customers be missing out on a better deal? Let’s explore.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Etrade
|
$0
|
$0
|
$0 + $0.65 per contract
|
$0
|
$0
|
|
TradeZero
|
$0
|
na
|
$0.59 per contract
|
$0
|
na
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Etrade
|
|
|
|
|
|
|
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TradeZero
|
|
|
|
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First Category: Available Assets
TradeZero offers just three types of securities for trading:
- Equities
- Exchange-traded Funds
- Option contracts
E*Trade offers these three and adds:
- Bonds
- Mutual Funds
- Futures (including crypto contracts)
- IPOs
Winner: E*Trade
Second Category: Web-Based Trading
E*Trade and TradeZero both offer browser-based platforms. TradeZero actually has two, one of which costs $59 per month and includes Level II quotes, something E*Trade’s browser platform doesn’t have. However, TradeZero’s free platform lacks options trading, which E*Trade does offer.
E*Trade’s platform is more advanced than TradeZero’s free version, but it lacks a short locate tool, which TradeZero’s free platform includes.
Winner: Tie
Third Category: Desktop Software
For more demanding traders, both firms offer desktop platforms. E*Trade requires a $1,000 account balance to use its Pro platform, which is free and includes many advanced tools.
TradeZero offers ZeroPro, a desktop platform with similar advanced features, but it costs $79 per month unless you trade 100,000 shares in a month, making it a more expensive option.
Winner: E*Trade
Fourth Category: Mobile Apps
Both firms offer mobile apps. E*Trade has two apps: one for heavy trading, including futures, and another with features like mobile check deposit and streaming video news.
TradeZero’s app lacks some of E*Trade’s features, such as options trading, but does include a short locate tool. E*Trade’s app outperforms in charting and news.
Winner: E*Trade
Fifth Category: Day Trading and Swing Trading
Shorting: Both firms allow short selling, but only TradeZero has a short locate widget. E*Trade customers need to sign up for eligibility to trade hard-to-borrow stocks.
Extended Hours: TradeZero’s pre-market session starts at 4:00 am EST, earlier than E*Trade’s 7:00 am start. Both firms have the same after-hours period, but E*Trade offers overnight trading in some ETFs, which TradeZero doesn’t.
Level II Quotes: Both firms offer Level II data. TradeZero charges for it, while E*Trade provides it free for accounts with at least $1,000.
Direct-access Routing: TradeZero offers 9 venues, while E*Trade has only 2.
Margin: E*Trade’s margin rates range from 11,7% to 13,7%. TradeZero charges a flat 9% in the US.
Routing Fees and Rebates: TradeZero offers maker-taker fees, while E*Trade does not.
Pattern Day-Trading Rule: TradeZero’s Bahamian branch allows circumvention of the $25,000 PDT rule, which E*Trade does not.
Winner: TradeZero
Sixth Category: Other Services
Dividend Reinvestment Program: E*Trade offers DRIP, while TradeZero does not.
IRAs: You can open an IRA at E*Trade, but not at TradeZero.
Winner: E*Trade
Top Competitors
Recommendations
- Mutual Fund Traders: E*Trade for obvious reasons.
- Beginners: E*Trade for its 24/7 customer service and excellent educational resources.
- Long-Term Investors and Retirement Savers: E*Trade is the clear choice for financial planning services, retirement account options, and branch locations.
- Small Accounts: E*Trade.
- Stock/ETF Trading: E*Trade offers better stock and ETF research materials, along with free software, making it our top pick.
Promotions
E*Trade:
At E*TRADE, get $0 trades + 65₵ per options contract.
TradeZero:
Trade stocks, options & ETFs for free.
TradeZero vs E*Trade Summary
Despite being less known, TradeZero competes well with E*Trade and even surpasses it in some day-trading features. However, E*Trade remains the stronger choice overall.
Updated on 8/23/2024.
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