E*TRADE Review: The Best Leading Online Brokers

E*TRADE: Website

Minimum Balance: $0
Cost per stock trade: $0
Cost per options trade:
$0.65 per contract or $0.50 per contract with 30+ trades per quarter
Promotion: Up to $3,000 cash
Commission-free ETFs: All
No-transaction-fee mutual funds:
4,400+ NTF mutual funds
Securities tradable:
Stocks, ETFs, bonds, mutual funds, options, futures
Customer service:
Email, phone, and online chat are all 24/7
Account fees: $25 fee for partial transfers/$75 for total transfers, though E*Trade will waive the fee if more than $5,000 remains in the account after the transfer.
Mobile app: E*Trade offers the E*Trade Mobile app on both Android and Apple

Overview

Since its foundation in 1982, E*TRADE has consistently pushed the brokerage business forward by embracing change and innovation. In the early 1990s, E*TRADE rode the wave of internet popularity to establish a solid online presence, which has contributed to the company’s current status as a cutting-edge trading platform. Morgan Stanley has committed to purchasing E*TRADE for $13 billion by 2020.

The platform’s wide range of trading capabilities and user-friendliness make it appealing to novice and experienced traders and investors. The extensive study menu has become much more so with the incorporation of Morgan Stanley research into all E*TRADE platforms.

Users of E*TRADE have access to a variety of resources that facilitate trading in a wide variety of asset classes and markets (stocks, options, futures, and more). When starting, numerous automatic portfolio construction tools and pre-made portfolios are available for passive investors. Notably, the platform does not allow direct exposure to cryptocurrencies or any trading on foreign exchanges.

Improvements to E*TRADE’s training content have allowed both experienced traders and newcomers to the market to learn the ropes swiftly and confidently. Traders can use E*TRADE in whichever format they desire, as there are desktop, web, and two app options. With two different mobile apps for investors of varying skill levels and trading preferences, in addition to the desktop and online platforms, traders have access to a wealth of trading possibilities.

The benefit of the entire, E*TRADE offers a wide variety of trading capabilities and a streamlined interface that any investor can use.

Customer Service

• Brokers, financial advisors, active trader consultants, and product experts are available via phone anytime or night through E*TRADE’s dedicated customer service line.
• Customers of E*TRADE have access to a live chat with a representative around the clock, email support, a comprehensive language search engine, and a list of frequently asked questions. Online and mobile app users alike can use the chat feature.
• Financial advisors are available to qualified consumers at any of E*TRADE’s retail branches, or they can be reached by phone if no local branches are open.
• Regarding brick-and-mortar locations, E*TRADE tops out at over 30 in the United States.

Products

Stocks, bonds, mutual funds, exchange-traded funds, futures, and commodities are just some of the many investment options available to traders today. All of these investments are accessible through any E*TRADE platform. While indirect access to cryptocurrencies is available, forex trading and direct exposure are not.

Please see the following comprehensive list of E*TRADE’s services to assist you in evaluating the firm’s suitability for your specific investment requirements:

• Trading in Longs and Shorts (18,854 on the easy-to-borrow list)
• OTCBB
• Financial instruments that pool investor capital (9,083 total; 4,421 no transaction fee; 5963 carry a front-end or back-end load)
• Bonds (Corporate, Municipal, Treasury, CD, International)
• Futures/Commodities
• Options for the Future
• Options contracts with one leg or many legs
• Contracts for future delivery of bitcoin
• The DRIP program at E*TRADE allows investors to purchase fractional shares.
• Automated investment advisor (robot) built inside a stock trading website

Pricing

Since the “race to zero” for trading costs began, E*TRADE’s fees have decreased to be more competitive with other online brokers. The following is a breakdown of the expenses associated with using E*TRADE:

• Trading stocks, ETFs, and options online with E*TRADE incurs no expenses.
• You can buy or sell as many shares as you like at the standard commission cost.
• If fewer than 30 trades per quarter, options contracts cost $0.65 each, whereas those with more than 30 trades cost only $0.50 each. If you want to buy 50 contracts in one leg, the price won’t change.
• Trading over-the-counter (OTC) equities, including OTC, OTCBB, grey market, and international securities, costs $6.95. If the investor makes at least 30 trades in stocks, ETFs, or options in a quarter, the fee drops to $4.95.
• Trades in no-load funds outside the NTF list will cost you $19.99.
• As of July 2022, the margin interest rate ranges from 11.20% on balances under $10,000 to 8.70% on balances above $1,000,000.
• Commissions on bond deals range from $10 to $250, with $100 being the middle ground.
• Bitcoin futures contracts are $2.00 on each side plus costs, while regular futures contracts are $1.50 per side.
• No minimum amount or number of trades is required to prevent inactivity and no fees for closing the account (other than the ACAT fee).
• It costs $25 to move a single account out of E*TRADE and $75 to transfer all your accounts simultaneously.
• For $25, you can talk to a live broker for overnight session trades between 4 and 7 a.m. Eastern, this fee is not charged.
• Transferring money from a local bank account to another costs nothing. However, sending money outside will cost you $25.
• Transfer fees for an international wire transfer are $25, plus any applicable currency conversion fees.
• To mail a check from E*TRADE will cost you $10.
• You can use the E*TRADE platforms at no cost to you.

Order Types

Different kinds of orders can be placed through various platforms. Investors using E*TRADE can place contingent, bracketed orders, OTO, OCO, and OTOCO (one-triggers-an-one-cancels-the-other). The mobile app, however, only allows for OTO and dependent orders.

Support for advanced order types (such as OCO) is crucial since they allow traders to manage risk better, enter and exit positions rapidly, and secure profits. With these safeguards, traders may devote more time to studying the market without constantly monitoring their accounts.

E*TRADE also allows for more conventional order types like market, market on closing, limit, stop limit, stop on the quote, and trailing stop orders. The order ticket or the portfolio can be used to select tax lots for a trade’s settlement. This feature allows for more effective tax optimization of positions.

Usability

As our top broker for an easy trading experience award shows, E*TRADE has a long history of innovation in developing user-friendly online trading platforms. With E*TRADE, you may trade stocks and options online from the convenience of your computer, tablet, or smartphone, and you’ll have access to a wide variety of helpful features and tools.

Power E*TRADE and E*TRADE online are the two web-based platforms offered by the broker, and they each have mobile apps that replicate the desktop versions’ features and functions. Users can switch between mirrored experiences with ease because of this feature.

The E*TRADE online platform is best for inexperienced or non-active investors since it provides easy access to tools like portfolio analysis, quotes, and educational content. A simple screening tool can help investors choose stocks, bonds, mutual funds, or exchange-traded funds (ETFs) that align with their investing goals. The E*TRADE mobile app is excellent, and it has many of the same capabilities as the website, plus the extra benefit of syncing your watchlist across the two platforms. In any case, investors can track holdings, make transactions, and view up-to-the-minute market data and quotes.

When it comes to trading, Power E*TRADE is the platform to use if you’re an experienced, active investor. With E*TRADE’s 2016 purchase of OptionHouse, users can now access even more powerful price notifications, screening features, technical analysis, and sketching tools.
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All the advanced capabilities of the desktop edition of Power E*TRADE are also available on the mobile app.

E*TRADE also provides a desktop platform called E*TRADE Pro, which can be downloaded and customized in various ways. Advanced traders who want access to all the trading software features will find this platform particularly useful.

After the merger, customers of both Morgan Stanley and E*TRADE can view their accounts in a single window. This improvement allows investors to better understand their portfolio as a whole while taking advantage of the unique capabilities of each company’s platform.

Trade Experience

E*TRADE has prioritized trader satisfaction and feature development since traders of all skill levels have access to the resources they need to implement their preferred trading methods.

To place an order, pick the asset you want to trade, select the appropriate order type, and enter the desired quantity. It is simple to keep tabs on the execution status and position details after double-checking the order to make sure the transaction is appropriately queued.

The platform allows users to tailor their experience by providing features like filterable watchlists across over a hundred options. You can enter the market swiftly and efficiently by pressing the “trade” button next to the security on your watchlist.

Options trading order tickets also have a simple interface. Before submitting an order to the market, options traders can choose an options strategy from a pull-down menu. In addition, the site provides resources to help investors select a strategy in light of their risk preferences and market conditions. This is especially useful for novice options traders.

Trading stocks, options, and futures have never been more straightforward than it is with the Power E*TRADE platform. The investor can save time by going to a single page that features all of the trader’s preferred tools, each of which can be adjusted to suit their individual needs. Technical analysis, market research, and educational prompts are pre-loaded into charting software to better inform investors about their trade’s potential scope and impact. In addition to the regular information on a web platform trade ticket, Power E*TRADE’s access provides estimates of the maximum gain or loss that can be made on your transaction.

E*TRADE provides streaming real-time market data, albeit real-time snapshot quotations only refresh when requested, and delayed quotes lag by 15 minutes. The tax lots for an order can be selected either on the ticket or in the trader’s portfolio, allowing for seamless trading straight from the charts. Depending on the E*TRADE platform, you can place various orders, including conditional orders, trailing stops, and stop-limit orders.

Mobile Experience

Concerning mobile trading innovations, E*TRADE has remained a frontrunner. There have been more than a dozen upgrades to the app in 2022, including alterations to the interface, new search tools, and updated information about your current location. The E*TRADE Mobile and Power E*TRADE Mobile apps allow traders to adapt the platform to their individual preferences.

Features such as watchlists, market research, quotes, portfolio management, and more are prioritized in the E*TRADE mobile app to attract new investors. The Power E*TRADE app is loaded with extensive charting, analysis, and screening features so that even the most seasoned traders can easily place orders and keep tabs on their holdings. The software also provides a user-configurable options chain for executing options strategies with minimal latency.

There is feature parity between the online and desktop versions and the mobile apps. That consists of streaming content, market news, and research on investments from a third party. You can easily switch between your desktop, the web, and your mobile device by using the same watchlists across your devices.

Neither app supports in-chart trading. You also can’t draw on mobile devices without first transferring your work from another platform. However, the app’s settings tab can be adjusted in a wide variety of ways to meet the needs of each type of investor.

Security, Reliability, and Transparency

• The safety of E*TRADE meets all norms in the business.
• All E*TRADE platforms support two-factor authentication.
• E*TRADE supports biometric authentication on mobile devices through fingerprints and facial recognition.
• Customers of E*TRADE will be insured up to an additional $1 billion by the Securities Investor Protection Corporation (SIPC) policy excess of Morgan Stanley. This sum exceeds what is mandated by SIPC’s insurance.
• On January 28, 2021, E*TRADE suspended trading in meme stocks GME and AMC until resuming regular trading the following day.
• Furthermore, E*TRADE claims there have been no severe data breaches on their platform.

The fees imposed by E*TRADE are straightforward to understand. For instance, the broker may provide information on rates and pricing on a particular page that details the various expenses related to margin trading, commissions, and other services. No significant legal action has been taken against E*TRADE by regulators recently.

News and Education

Along with free access to Bloomberg TV and Morningstar Intra Day news stories, market commentary, videos, and research reports, the Power E*TRADE experience also includes streaming news in real-time. Briefing.com provides daily reports on the stock and bond markets. In addition to the monthly market comments and daily active trader analyses, and weekly investment pieces, you may also access these resources on our website.

There is much high-quality instructional content available on E*TRADE, and the company has been working hard to improve it. The “Your Life, Your Money” section has received much attention. This section provides investors of all skill levels access to a wealth of educational resources, including financial calculators and how-to articles.

Morgan Stanley’s “Thoughts on the Market” podcast is one example of how the acquisition has expanded the range of educational integrations and features available to users. Asset classes and other market-related issues are commonplace in the content.

Without risking their own money, traders can practice trading methods and get a feel for the platform using a demo account. This is an excellent resource for novice and experienced traders because it allows them to practice their techniques in a risk-free environment.

The Knowledge Center at E*TRADE is true to its name, providing extensive materials on various topics in multiple formats.

Articles, videos, workshops, guides, and market analyses from experts are all part of this collection. In addition, there is a more advanced program designed for traders who are comfortable with the basics but want to sharpen their skills with options and futures.

Thanks to your efforts, investors of all experience levels and interests can now access a comprehensive suite of learning resources. E*TRADE is making an apparent effort to improve this site section, which is excellent news for investors.

Pros & Cons

Pros Clarified

No-transaction-fee

Regarding no-load, no-transaction-fee mutual funds, E*Trade is at the top of the market, with more than 4,400 to choose from. Interactive Brokers indeed has more overall no-transaction-fee mutual funds, but E*Trade has more than enough to meet your needs. Also, you can invest in mutual funds regularly for as low as $25 per installment.

All exchange-traded funds (ETFs) on E*Trade are offered without a commission, making them a great alternative to the high fees charged by many mutual fund brokers. While neither mutual funds nor exchange-traded funds charge a commission, investors in these instruments pay an expense ratio fee to the fund’s sponsor.

Marketable Securities

Stocks, bonds, ETFs, options, and mutual funds are some standard investment vehicles available through E*Trade. That’s the bread and butter for most brokers, but E*Trade goes above and beyond by offering futures as well. That service places it in an elite group of brokers that give their clients access to trading in one of the market’s most volatile and volatile stocks. While this may not be a big deal to novice investors, seasoned traders may welcome the extra information.

Even though E*Trade does not yet support direct cryptocurrency trading, you can still invest in cryptocurrency-related instruments like futures and exchange-traded funds.

Commission savings on option trades

Like most of its competitors, E*Trade has reduced its base commission for stock and ETF trading to $0. However, in contrast to its competitors, this broker provides options for trades at a reduced commission rate. If you make more than 30 trades per quarter in stocks, ETFs, or options, your options commission will drop to $0.50 per contract from the customary $0.65. Therefore, there is a compelling reason for high-volume dealers to shop here.

Even if you don’t want to make an initial deposit, you can open an E*Trade account with a minimum of zero dollars. E*Trade has not required a minimum balance in IRA accounts for a long time. This broker is on par with the other major online trading platforms without a minimum deposit requirement.

Trading Platforms

While Power E*Trade is the broker’s premier offering, E*Trade Web, the company’s entry-level platform, nonetheless provides a good set of features. Simply put, it’s a platform that helps investors source ideas without needing all the advanced trading analysis.

Live quotes, charts, and market analysis are accessible on this website. The stock, bond, and mutual fund screeners are all designed to help you find the best options for your situation. Here you will have the resources to study the market, backtest trading methods, and analyze options trades.

The firm also provides the standard trading app, E*Trade Mobile, for mobile devices. It supports Apple and Android devices, as well as the Apple Watch. The app provides access to Bloomberg TV, research, and news, and it may be used to trade stocks, bonds, ETFs, mutual funds, and multi-legged options.

It’s not only a trading app; you can also use it to pay bills, transfer funds, and deposit checks.

Helping out the customer

E*TRADE’s service is particularly noteworthy. The company makes itself available via phone, online chat, and email. Whenever you need us, day or night, weekday or weekend, you can find services like this at Charles Schwab and other large internet brokers, but it’s unusual at smaller firms. It’s convenient to know that your broker is available whenever you have a question, even if it’s not during regular office hours.

Study and teaching

Additionally, E*Trade does very well in this regard. The broker offers both independent market research and its daily market comments. Stock reports from Thomson Reuters and TipRanks, as well as fund analysis from Morningstar, are examples of independent research. It’s an extensive study provided to customers at no extra cost.

E*Trade provides extensive resources for newcomers to the stock market, including a collection of articles, videos, and classes. Live events and webinars will cover a wide range of investing-related topics, from the fundamentals to advanced techniques for individuals wishing to gain an advantage in the market. You will also receive E*Trade’s Analysis of the markets and current events.

Cons Clarified

Account fees

There is still the annoyance of “transfer out” fees if you want to shift your money from E*Trade to another brokerage. However, it’s challenging to hold brokers fully responsible for this practice because the fee they impose may be just the thing to keep you from switching to a new brokerage in the first place, especially if you won’t be eligible for any bonuses to assist you in the making up for the cost of the transfer.

If more than $5,000 is still in the account after the partial transfer, E*Trade will not charge you the $25 partial transfer cost. The full transfer fee is $75. However, in keeping with its reputation as an investor-friendly company, Fidelity has done away with this cost.

Fractional shares

Reinvesting dividends in fractional shares is possible through E*Trade. This is a convenient feature for investors seeking to acquire money because it enables them to reinvest their exclusive reward in further shares of stock. The broker does not let investors acquire fractional shares. Thus you will have to buy in whole share increments. This makes the broker less competitive than rivals like Charles Schwab and Fidelity Investments, which allow customers to purchase and reinvest dividends in fractional shares.

Is E*TRADE a Worth Broker to Get?

Although novice investors and experienced traders have distinct wants and goals, both groups find that E*Trade meets their requirements. Still, the broker provides satisfactory service to both parties:

E*Trade is a top online broker because of its competitive commission rates and low minimum for options trades.

Newer investors or those interested in buy-and-hold investing with funds can benefit significantly from the available no-transaction-fee mutual funds and research.

Also, the broker’s appeal to aggressive traders is enhanced by the quality of its trading platforms and the diversity of its security offerings.

Try IUX Markets and save on trading fees. If you’re starting in the stock market or CFDs and need a reliable broker, your options include TD Ameritrade, Fidelity Investments, and Awonar.

Conclusion

If you’re an investor of any stripe or trading philosophy, you’ll find something to like in E*TRADE’s platform. Users can use either a desktop or mobile application, both of which are fully feature-equivalent and may be tailored to the user’s preferences and trading approach. E*TRADE is dedicated to providing new and seasoned investors with the knowledge they need to develop their trading competence and capacities. This dedication is highlighted by the company’s evident, renewed focus on instructional content.

When it comes to offering its customers the entire spectrum of tools, trading capabilities, and investment options necessary to be a premier broker, E*TRADE finds the perfect mix between giving a straightforward experience and a beautiful design. Whether you’re a seasoned options trader who uses a complex options chain or an ETF investor who prefers a hands-off approach, you’ll feel right at home with E*TRADE. Some investors will have to find creative solutions if they want direct crypto exposure or to trade on global exchanges. Overall, though, E*TRADE is a brilliant, cutting-edge financial tool that any investor may use to their advantage.

FAQs

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Source: Investopedia, Bankrate