In 1975, Vanguard Group Inc. was founded by John C. Bogle, and it became the first index mutual fund. In 1981, Vanguard launched the first publicly available retail index fund. Vanguard is now one of the world's largest investment management companies with more than $4 trillion in assets under management. In 1986, E*TRADE Financial Corporation was founded by William A. Porter and Bernard A. Krooks. It was the first online discount brokerage firm. E*TRADE pioneered the online brokerage industry by offering customers the ability to trade stocks and options over the internet. In 1997, Vanguard acquired the HarrisDirect online broker, which was re-branded as Vanguard Brokerage Services. In 1998, E*TRADE acquired Telebank, which was re-branded as E*TRADE Bank. In 2000, Vanguard merged its brokerage business with Prudential's Bache unit to form Vanguard Brokerage Services, LLC. In 2001, E*TRADE acquired Brown & Company, which was re-branded as E*TRADE Securities. In 2007, Vanguard acquired the Windsor Fund family from American Express.
There is no definitive answer as to which stock brokerage is the best. Vanguard and Etrade are both reputable and popular choices, so it really comes down to personal preference. Some people may prefer Vanguard's lower fees, while others may prefer Etrade's more comprehensive offerings. Ultimately, it is up to the individual investor to decide which broker is right for them.