eTrade vs Vanguard in Comparison 2022 | Which One is Better?


Deciding on investment is not easy. You have to compare, analyze, and study enough to conclude a decision. If you are determined to find the best investment company, then eTrade and Vanguard will be the top of the line among popular companies. eTrade has few features that can beat Vanguard. Also, Vanguard has some products that can attract you. So how can you choose one between them?

Let's do an eTrade vs Vanguard comprehensive comparison in this article. It's going to be a neutral review. AtoZ Markets is in no way responsible for any opinions made by the writer.

About eTrade

etrade vs vanguard

image source: eTrade

Etrade is an online discount brokerage firm that offers its customers a wide range of investment products and services. These include stocks, bonds, options, mutual funds, and retirement accounts. In addition, eTrade offers its customers many research and educational tools to help them make informed investment decisions.

eTrade was founded in 1982 and is headquartered in Arlington, Virginia. The company has more than 3.5 million customer accounts and processes more than 1.5 million trades per day.

About Vanguard

Vanguard vs etrade

image source: Vanguard

Vanguard is known as a low-cost provider of mutual funds and ETFs in the investment world. The company was founded in 1975 by John Bogle and has grown to become one of the largest investment management firms in the world.

Vanguard offers a wide range of investment products, including mutual funds, ETFs, and variable annuities. The company has more than $3 trillion in assets under management and more than 17 million investors worldwide.

Vanguard vs eTrade: Trading Experience

Trading experience is what people find the most concerning for a trader. So having a smooth and sleek trading experience is going to make you comfortable doing trading on trading platforms.

Desktop Trading Platform

Trading platform comparison

Most of the time, experienced traders use a desktop to trade. That is why you have to know the difference between eTrade and Vanguard in desktop trading. 

Layout

eTrade's desktop experience is more streamlined and organized, with all the important information easy to find. In addition, the layout is simple and intuitive, making it easy for traders to quickly find the tools and information they need. On the other hand, Vanguard's desktop experience is a bit more cluttered and overwhelming, with a lot of information and features competing for attention. This can make it difficult for traders to find what they need and can lead to frustration.

Features

eTrade offers a variety of features to help traders make informed decisions, including market news, analysis tools, and educational materials. Vanguard offers a limited number of features in comparison, which may not be enough for some traders.

Tools

eTrade's desktop trading platform experience includes a wide variety of tools to help traders maximize their profits, including a trade simulator, margin calculator, and price alerts. On the other hand, Vanguard offers a limited number of tools, which may not be enough for some traders.

 

Mobile Trading Platform

Mobile trading apps

Both brokers offer their own unique mobile apps with different features. So, which broker offers the best mobile trading experience?

Let's start with eTrade. Their mobile app is user-friendly and easy to navigate. It offers a variety of features, including streaming quotes, market news, order entry, account information, and portfolio tracking. The app also allows you to access your account and trade on the go.

Now let's take a look at Vanguard. The Vanguard mobile app is also user-friendly and easy to navigate. It offers a variety of features, including streaming quotes, market news, order entry, account information, and portfolio tracking. The app also allows you to access your account and trade on the go. However, the Vanguard app does not offer a mobile check deposit feature, which the eTrade app offers.

Overall, both the eTrade and Vanguard mobile apps offer a great mobile trading experience. However, if you are looking for a mobile app that offers a mobile check deposit feature, then the eTrade app is the best option.

eTrade vs Vanguard: Usability

eTrade's user interface is sleek and easy to navigate. You can easily find what you're looking for and complete transactions in a few clicks. On the other hand, Vanguard's user interface is clunky and difficult to navigate. As a result, you can only complete transactions by drilling down through multiple menus.

eTrade also offers various tools and resources to help you make informed investment decisions. Unfortunately, Vanguard offers very few tools and resources, and what they do offer is not very user-friendly.

Overall, eTrade is the clear winner when it comes to usability. Its sleek user interface makes it easy to navigate, and its wide variety of tools and resources makes it easy to make informed investment decisions. Vanguard offers very little in comparison, making it difficult to make informed decisions and difficult to navigate.

Vanguard vs eTrade: Fees

Both platforms have a unique fees structure that may not seem important. But these fees can make a difference in your profit. So, you have to know how much the cost is going to be.

Trading Fees

Stock trading is free on both platforms. But option trade costs $0.65 per contract on the eTrade, and Vanguard takes $1.00 per contract. eTrade futures contract costs $1.50 per contract, and bond costs $1.0 per bond. Also, eTrade charges $19.95 for mutual funds. On the other hand, there is no charge for mutual funds on Vanguard.

Inactivity Fees

Fortunately, eTrade and Vanguard do not charge any money for being inactive. That means you can come back anytime and start trading without spending any extra money.

Non-Trading/ Other Fees

eTrade has no yearly maintenance fee, while Vanguard charges $20 per year of IRAs. And both have account transfer fees. eTrade costs $25 for partial account transfer and $75 for full account transfer. In contrast, Vanguard costs no money for account transfer. However, they take an annual maintenance fee of $20, which eTrade does not.

Vanguard vs eTrade: Investment Options

eTrade and Vanguard offer a range of choices for investors when it comes to investment options. Both platforms offer a variety of mutual funds, stocks, and ETFs. However, they have some differences in investment options.

eTrade offers a wider range of investment options, including options like futures and options trading. Vanguard offers a narrower range of options, but the offered options are generally lower-cost. For example, Vanguard offers several no-load mutual funds, while eTrade does not.

Here are the eTrade investment products:

  • Stocks
  • Options
  • Mutual Funds
  • ETFs (Exchange Traded Funds)
  • Futures Trading
  • Bonds and CDs
  • Prebuilt Portfolios
  • IPO/ New Issues

And here are the Vanguard Investment products:

  • Vanguard Mutual funds
  • ETFs
  • Stocks
  • CDs
  • Bonds
  • Money market

Overall, both eTrade and Vanguard are good options for investors. eTrade is a good choice for investors who want a wide range of investment options, while Vanguard is a good choice for investors who want low-cost options and want to do their own research. If you trade mutual funds, both have that facility.

eTrade vs Vanguard: Account Types

Both offer various account types. However, I find eTrade is better in account types. In general, Vanguard has versatility.

eTrade offers the following account types:

  • Brokerage Account
  • Retirement Account
  • Core Portfolios
  • Managed Portfolios
  • Small Business
  • Bank

The Roth IRA is a tax-exempt retirement account in which you pay taxes on the income and capital gains generated by the investments today. Still, you do not pay taxes on the income and capital gains when you withdraw the money in retirement. The Traditional IRA is a tax-deferred retirement account in which you do not pay taxes on the income and capital gains generated by the investments today. Still, you do pay taxes on the income and capital gains when you withdraw the money in retirement. The SEP-IRA is a tax-deferred retirement account in which you can contribute up to 25% of your income each year, up to a maximum of $55,000. The SIMPLE IRA is a tax-deferred retirement account in which you can contribute up to $12,500 per year. Finally, the 529 college savings plan is a tax-advantaged investment account that allows you to save for your child's college education.

Vanguard offers the following account types:

  • IRAs
  • Brokerage
  • Small business
  • 529 savings
  • UGMA/UTMA
  • Trust & Organization

The biggest difference between the account types offered by eTrade and Vanguard is that Vanguard offers a 529 college savings plan, while eTrade does not. The 529 college savings plan is a tax-advantaged investment account that allows you to save for your child's college education. In addition, it offers tax-deferred growth and tax-exempt withdrawals, so you can save for your child's education without having to pay taxes on the income.

If you are looking to save for your child's college education, Vanguard's 529 college savings plan is a good option. If you are looking for a retirement account, both eTrade and Vanguard offer various options, including the Roth IRA and the Traditional IRA.

Vanguard vs eTrade: Regulations

Broker regulation comparison

eTrade and Vanguard are both regulated by SEC and FINRA.

The United States Congress created the Securities and Exchange Commission (SEC) in 1934. The reason for creating this regulation is for maintaining the stock market. Also, it is responsible for regulating other security industries and financial services as well. That means anything goes wrong with your money. The company is responsible for giving statements according to US law.

The SEC has several regulatory responsibilities, including:

  • Regulating the securities industry
  • Regulating the stock market
  • Enforcing federal securities laws
  • Overseeing the accounting profession
  • Overseeing the Wall Street financial markets

However, the SEC is an independent agency, not a government branch. But, it is controlled by the US government indirectly. And this is headed by five commissioners, and they are appointed by the president and confirmed by the Senate. Also, the SEC gets a budget by congressional appropriations.

And FINRA is the Financial Industry Regulatory Authority, a not-for-profit organization authorized by Congress to protect investors by regulating the securities industry. FINRA comprises the National Association of Securities Dealers (NASD) and the New York Stock Exchange (NYSE). FINRA's mission is to foster investor confidence and protect the investing public. FINRA achieves this mission by writing and enforcing rules governing the securities industry, providing arbitration and mediation services for investors and firms, and educating investors about the securities industry. FINRA's rules are designed to promote just and equitable markets, protect investors and ensure that firms conduct their business fairly and honestly. FINRA's rules are also designed to prevent fraud and abuse and to ensure that investors receive important information about the securities they are investing in.

Also, both platforms have standard SIPC money protection up to $500,000. Since FINRA and SEC regulate both, your money is well protected, that is for sure.

Vanguard vs eTrade: Security

Broker security comparison

There is no denying that Vanguard is a powerhouse in the investment world. With over $3 trillion in assets under management, the company is a clear leader in low-cost, index-based investing. However, eTrade is also a well-respected player in the online investing space, and its security features are top-notch.

Both Vanguard and eTrade offer two-factor authentication, which is a must-have for any online investment account. They also offer many other security features, such as password requirements, fraud protection, and account monitoring.

However, when it comes to security, Vanguard is the clear winner. The company has a long history of protecting its investors' money, and its security features are more robust than eTrade's. For example, Vanguard offers 24/7 account monitoring, while eTrade only offers account monitoring during business hours.

So, if security is your top priority, Vanguard is the better choice. However, if you're looking for various investment options and low costs, eTrade is a great option.

eTrade vs Vanguard: Research Tools

There are many different research tools available to investors, and it can be tough to decide which is the best for you.

eTrade offers a wide variety of research tools, including analyst ratings, earnings estimates, and price targets. The site also offers a wealth of information on individual stock research, including historical, fundamental, and technical data.

Vanguard offers a more limited selection of research tools, but the tools it does offer are very comprehensive. For example, the site includes analyst ratings, earnings estimates, and price targets. It also offers a wealth of information on individual stocks, including historical, fundamental, and technical data.

So, which is the better research tool? It really depends on what you are looking for. eTrade is great if you want a lot of different research options, while Vanguard is great if you want more comprehensive information on individual stocks.

Vanguard vs eTrade: Customer Support

customer support

When it comes to the quality of customer support, there is no comparison between eTrade and Vanguard. Vanguard is known for providing top-notch customer service, while eTrade is often criticized for its poor customer service.

Availability

eTrade customer service is available Monday through Friday from 8:00 am to 8:00 pm EST. They do not offer any weekend customer service. Vanguard customer service is available Monday through Friday from 8:00 am to 8:00 pm EST. Both offer phone call and email support.

Speed

When it comes to the speed of customer support, Vanguard is the clear winner. eTrade's response time is significantly slower than Vanguard. In fact, Vanguard's response time is one of the best in the industry.

This is likely due to Vanguard's focus on providing excellent customer service. They understand that a quick response is essential for providing a positive customer experience.

Quality

One of the biggest complaints about eTrade is that it can be very difficult to get in touch with a customer service representative. You can either call them, which can often lead to long wait times, or you can try to contact them through their website. However, the website often has trouble connecting with customer service representatives, and you can end up waiting for hours or even days for a response.

On the other hand, Vanguard provides excellent customer service through both its website and phone line. You can usually get in touch with a customer service representative very quickly, and they are always happy to help.

Overall, Vanguard is the clear winner when it comes to customer support quality. Unfortunately, eTrade often falls short when compared to Vanguard's high standards.

Is eTrade better than Vanguard?

There are pros and cons to each investment broker. However, when comparing eTrade and Vanguard, a few factors are to consider.

For starters, Vanguard is known for its low-cost index funds, which can be a great option for investors looking for a passive investment strategy. On the other hand, eTrade offers a wider range of investment options, including individual stocks, bonds, and ETFs. This can be helpful for investors who want more control over their portfolios.

Another important consideration is customer service. Vanguard is known for its excellent customer service, while eTrade has had its share of complaints in the past. However, eTrade has been making strides to improve its customer service in recent years.

Conclusion

So, that was the Vanguard vs eTrade comparison. I hope you got enough information to make your decision.

With its user-friendly platform and the vast array of investment options, eTrade has claimed the title of being the most versatile brokerage out there. However, with its low fees and wide selection of mutual funds, Vanguard has emerged as the most affordable option for investors. If you trade stocks, eTrade could be a good option.

In conclusion, you have to decide which one you should choose. Both are reliable and affordable; however, Vanguard charges less money than eTrade. Also, user experience and customer service are better at Vanguard.