E-Trade Review and Comparison

E-Trade is a well-established online brokerage firm that offers a range of trading and investment services. It's been around since 1996, making it a pioneer in the online trading space.

E-Trade has a user-friendly platform that's accessible on both desktop and mobile devices. You can easily navigate through their website and mobile app to place trades, monitor your accounts, and access other features.

One of the standout features of E-Trade is its extensive research and analysis tools. With access to over 100 technical indicators, you can make informed decisions about your investments.

E-Trade offers a wide range of investment products, including stocks, options, ETFs, mutual funds, and bonds.

E*TRADE offers some really great features that make it a popular choice among investors and traders. Industry-best mobile apps for investors and traders are a major advantage, with two available mobile apps that offer a powerful combination of tools and features.

The pre-built and automated portfolio options are also a big plus, providing a streamlined investment solution for both passive investors and beginners. E*TRADE's automated investment management is built into its brokerage platform through its Core Portfolios robo-advisors.

E*TRADE's educational content library is another valuable resource, covering a wide range of trading topics, investing best practices, and market commentary. The library is divided into key life stages like retirement and family finances, making it easy to find relevant information.

Here are some of the key pros and cons of using E*TRADE:

E*TRADE's mobile apps are a standout feature, offering industry-best tools for investors and traders. With two available mobile apps, users can stay connected to their brokerage accounts and markets from anywhere.

The Power E*TRADE app integrates options tools, which were strengthened by the acquisition of Options House in 2016. This integration provides a powerful combination that has earned E*TRADE our best for mobile investing and trading award.

E*TRADE's pre-built and automated portfolio options offer a streamlined investment solution for both passive investors and beginners. This feature is made possible by the Core Portfolios robo-advisors built into the brokerage platform.

E*TRADE's educational content library covers a wide range of trading topics, investing best practices, and market commentary. It's divided into key life stages like retirement and family finances, making it easy to find relevant information.

E*TRADE provides an excellent range of trading tools, research material, and investment choices that enable all types of investors to carry out their desired investment strategy.

E*TRADE has its share of drawbacks. No international exchange trading is available, which means you won't be able to invest in international stocks or forex markets.

The interest rate for uninvested cash is surprisingly low, earning you practically nothing in most cases. This is due to E*TRADE's cash sweep program, which pays interest but at a disappointing rate.

Direct crypto investing is not an option, so if you're interested in buying cryptocurrencies like Bitcoin or Ethereum, you'll need to look elsewhere. E*TRADE does offer crypto ETFs, but they're not the same as direct investing.

Fractional shares are only available through a robo-advisor portfolio or dividend reinvestment plan (DRIP), which may not be ideal for self-directed traders.

Here's a summary of E*TRADE's cons:

The Power E*TRADE platform offers a free paper trading account, which allows you to practice different stock and options strategies.

You can simulate trades and calculate probabilities with the snapshot analysis and TradeLab tools.

The paper trading feature is a great way to test your skills and build confidence before risking real money.

It's also a good way to learn about different trading strategies and techniques in a low-risk environment.

E*TRADE's online brokerage service is user-friendly and customizable, with two web-based platforms: Power E*TRADE and E*TRADE web, each with corresponding mobile apps that mirror the functionality and features of the respective desktop options.

The E*TRADE web version is perfect for beginner and passive investors, offering portfolio analysis, quotes, and educational content to help build portfolios. Basic screening tools let investors filter for assets like stocks, bonds, mutual funds, or ETFs that fit their investment philosophy.

Power E*TRADE is geared towards advanced and active traders, providing screening capabilities, technical analysis, and drawing tools. There is no minimum balance requirement to use Power E*TRADE, making it accessible to all serious investors.

The mobile version of the Power E*TRADE platform carries over all the robust features of the web experience, making it a top-notch app that mimics the web version features with the added convenience of watchlist integration across both experiences.

E*TRADE offers a user-friendly and customizable online brokerage service across the website, desktop, and two mobile apps, combined with readily accessible features and tools.

The broker has two web-based platforms, Power E*TRADE and E*TRADE web, each with corresponding mobile apps that mirror the functionality and features of the respective desktop options.

E*TRADE's web version is geared towards beginner and passive investors, providing access to portfolio analysis, quotes, and educational content to help build portfolios.

E*TRADE's Power E*TRADE platform is geared towards advanced and active traders, providing access to screening capabilities, technical analysis, and drawing tools.

E*TRADE's mobile app is top-notch and mimics the web version features, with the added convenience of watchlist integration across both experiences.

The Power E*TRADE mobile app contains even more robust charting, analysis, and screening capabilities so you can create orders and monitor positions with ease.

E*TRADE's online demonstration with the company revealed that it has removed less-used tools from the app to make it cleaner and more intuitive.

E*TRADE offers a wide range of investments from which to choose, including stocks, mutual funds, ETFs, futures, and commodities.

E*TRADE clients can access a robust array of assets, including stocks, bonds, mutual funds, ETFs, futures, and commodities, all available on all E*TRADE platforms.

Here are the two main platforms offered by E*TRADE:

Each platform targets different trading styles, with POWER E*TRADE geared towards active traders and E*TRADE Pro geared towards active traders with an account balance of more than $1,000.

Cash Management is a crucial aspect of any investment platform. Investors can earn a meager 0.01% to 0.15% interest on cash balances.

This rate is incredibly low compared to other top investment platforms. It's a significant drawback for those who have uninvested cash.

E-Trade's trading platform allows users to buy and sell a variety of assets, including stocks, options, and ETFs. With over 4,000 stocks available for trading, users can easily find and invest in their desired stocks.

You can place trades online or through the mobile app, and E-Trade offers a range of tools and resources to help you make informed investment decisions. The platform also provides real-time market data and news to keep you up-to-date on market trends.

E-Trade's trading fees are competitive, with a commission of $4.95 per trade for online trades. This fee is lower than many other online brokerages, making E-Trade a great option for frequent traders.

The platform also offers a range of order types, including market orders, limit orders, and stop-loss orders. This flexibility allows users to tailor their trades to their individual investment strategies.

E*TRADE's fees have become more competitive, making it a great option for investors. E*TRADE charges $0 commissions on online stock, ETF, and mutual fund trades, with no limit on the number of shares that can be traded at this base commission rate.

Options contracts are priced at $0.65 per contract if less than 30 trades per quarter, and $0.50 per contract if more than 30 trades per quarter. Trading OTC stocks costs $6.95, but this fee is reduced to $4.95 if you execute at least 30 stock, ETF, and options trades per quarter.

Bond transaction fees are $1 per bond, with a minimum of $10 and a maximum of $250. There's also a $1.50 per contract per side plus fees for futures transactions, and $2.50 per cryptocurrency futures contract, per side plus fees.

Here are the fees broken down:

E*TRADE has made its fees more competitive, eliminating some costs and reducing others.

The base commission rate for online stock, ETF, and mutual fund trades is $0, with no limit on the number of shares that can be traded.

Options contracts are priced at $0.65 per contract if less than 30 trades per quarter and $0.50 per contract if more than 30 trades per quarter.

You'll pay $6.95 to trade OTC stocks, but this fee drops to $4.95 if you execute at least 30 stock, ETF, and options trades per quarter.

Mutual fund commissions have been eliminated, making it a more attractive option for investors.

Margin interest rates vary from 13.20% for a balance less than $10,000 to 11.20% on balances of $250,000 or more.

Here's a breakdown of the fees you can expect to pay:

High-net-worth clients with over $1 million on the platform have all commissions waived for E*TRADE investments.

E*TRADE generates revenue from investors through various means. Payment for order flow is one such method, where E*TRADE receives payment from market makers for directing trade orders to them, at a rate of $0.0014 per share for equities and $0.39 for options.

Some competing brokers don't accept payment for order flow on equities. This means they don't generate revenue from this source. As a result, investors may have different options to choose from when it comes to their brokerage fees.

E*TRADE also offers stock loan programs, which generate revenue for the broker by providing loaned shares to traders and hedge funds shorting the stock. Investors can offer shares held long to E*TRADE's stock loan program, but they won't be able to choose which stocks to loan.

Interest charged on borrowed funds through E*TRADE's margin trading is another source of income for the broker. Interest rates start at 13.20% for balances under $10,000 and decrease to 11.20% for balances of $250,000 and up, as of Dec. 23, 2024.

E*TRADE's security is up to industry standards, with two-factor authentication available on all platforms. This adds an extra layer of protection to prevent unauthorized access to your account.

E*TRADE offers convenient mobile log-in functionality, allowing you to use either fingerprint or face scan authentication for added security. This is especially useful for those who prefer to trade on-the-go.

E*TRADE clients are covered by the Morgan Stanley excess of Securities Investor Protection Corporation (SIPC) supplemental insurance policy, which has an aggregate limit of $1 billion, exceeding the standard SIPC protection.

However, it's worth noting that E*TRADE limited trading of meme stocks GME and AMC on Jan. 28th, 2021, due to security concerns.

E*TRADE offers a wide range of account types to suit different investment goals and needs.

You can open a brokerage account, a Coverdell ESA, a custodial account for a minor, or a managed investing account through Core Portfolios. E*TRADE also offers various types of IRAs, including Traditional, Roth, Rollover, and Beneficiary IRAs, as well as an E*TRADE Complete IRA and an IRA for minors with earned income.

The Premium Savings Account through Morgan Stanley Private Bank earns a high savings interest rate and provides up to $500,000 in FDIC Insurance, or $1 million for joint accounts.

E*TRADE allows margin traders to borrow up to 50% of their eligible equity to buy securities, but interest charges apply and depend on the balance.

Here are some of the account types E*TRADE offers:

E*TRADE's security measures are up to industry standards, which is reassuring for investors.

Two-factor authentication is available on all E*TRADE platforms, providing an extra layer of protection for your account. This means that even if someone gets your password, they won't be able to access your account without the second form of verification.

If you're using a mobile device, E*TRADE offers both fingerprint and face scan log-in functionality, making it even more secure.

E*TRADE clients are covered under the Morgan Stanley excess of Securities Investor Protection Corporation (SIPC) supplemental insurance policy, which has an aggregate limit of $1 billion. This amount is above and beyond what is offered by SIPC, giving you added peace of mind.

E*TRADE limited trading of meme stocks GME and AMC on Jan. 28th, 2021, which suggests that they take swift action to address potential security risks.

Here's a quick rundown of E*TRADE's security features:

E*TRADE offers a wide range of account types to suit different investment goals and needs. You can open a brokerage account to buy and sell various securities, including stocks, mutual funds, options, and ETFs.

Some account types are specifically designed for education savings, such as the Coverdell ESA, which allows you to save for your child's education through tax-free withdrawals. This can be a great option for parents looking to save for their kid's future.

E*TRADE also offers a Custodial Account, which is a brokerage account in a minor's name, managed by a designated custodian until the minor turns 18. This can be a useful option for grandparents or other relatives who want to invest for a child's future.

You can also open various types of Individual Retirement Accounts (IRAs), including Traditional IRAs, Roth IRAs, Rollover IRAs, and Beneficiary IRAs. These accounts can help you save for retirement and potentially reduce your tax liability.

For those who want to save for retirement, E*TRADE offers a variety of IRA options to choose from. You can also open a Simplified Employee Pension (SEP) IRA or a Savings Incentive Match Plan for Employees (SIMPLE) IRA, which can be beneficial for self-employed individuals or small business owners.

Here are some of the account types offered by E*TRADE:

Additionally, E*TRADE offers a Max-Rate Checking account and a high-yield savings account, which can be useful for short-term savings or everyday banking needs.

Morgan Stanley owns E*TRADE, which they acquired in 2020 for $13 billion. E*TRADE continues to operate under its own name as a subsidiary of Morgan Stanley.

E*TRADE offers a wide range of investment tools and research capabilities to help traders make informed decisions.

With access to over 3,500 stocks worldwide through Morgan Stanley's research reports, you can stay up-to-date on market trends and analysis. The platform also includes third-party research from various sources, such as TipRanks, SmartConsensus, and Argus Fundamental.

E*TRADE's Stock Screener is a powerful tool that allows you to build custom screens or choose from predefined strategies, filtering stocks by criteria such as company size, rating, fundamentals, technicals, earnings, and dividends. This tool helps you quickly compare stocks and funds to research further.

The platform also includes a Live Action scanner with over 100 pre-defined screens, which can be used to scan the market in real-time and uncover oversold or overbought stocks. This feature is part of the Power E*TRADE app and can be used to assist your trading strategy.

E*TRADE offers a wide range of investment options, including stocks, options, ETFs, mutual funds, futures, bonds, and brokered CDs.

You can trade stocks, options, and ETFs, but be aware that E*TRADE doesn't support fractional shares, so you'll need to buy and sell full shares.

The platform provides access to over 6,000 mutual funds, including a list of "All-Star" funds recommended by E*TRADE.

You can also trade futures, including metals, energies, interest rates, and currencies, with support from licensed Futures Specialists available.

Here are the specific investment options available on the E*TRADE platform:

Keep in mind that E*TRADE doesn't allow trading of crypto tokens, such as Bitcoin or Ethereum, but you can purchase crypto-linked funds and stocks trading on the stock market.

E*TRADE offers a Fractional Dividend Reinvestment Plan (DRIP) that allows investors to purchase fractional shares.

This program provides one of two ways investors can access fractional shares, with the other being through the Core Portfolios robo-advisor platform.

E*TRADE offers a range of tools to help power your trading strategy, whether you're a new or experienced trader.

Reports and analyses are provided in real time and tailored to your specific interests. This means you can stay on top of market movements and make informed decisions.

E*TRADE eliminates the distorting performance effects of money flowing into and out of portfolios by using a time-weighted measure of gains and losses. This helps you get a clear picture of your portfolio's performance, without the influence of cash flows.

The platform also provides tax documents, making it easy to manage your taxes, and reports may be compatible with many common tax software options.

E*TRADE's Portfolio Analyzer is a powerful tool that lets you review your asset allocation, risk grade, and income estimator. This feature is a game-changer for investors who want to stay on top of their portfolio's performance.

The Portfolio Analyzer provides a risk grade that categorizes your portfolio as conservative, moderate, or aggressive, giving you a clear picture of your investment risk level. This helps you make informed decisions about your portfolio.

You can also track stock performance for your current holdings and those on your watchlist, making it easy to stay up-to-date on your investments. This feature is especially useful for investors who are actively trading or have a large portfolio.

E*TRADE's Portfolio Analyzer is a valuable resource for investors who want to optimize their portfolio and achieve their financial goals. By using this tool, you can gain a deeper understanding of your investments and make more informed decisions.

Core Portfolios offer a hands-off approach to investing, starting with as little as $500. E*Trade will manage your portfolio and rebalance it for you.

You can use Core Portfolios with eligible account types, including Rollover IRA, Traditional IRA, and Roth IRA. These accounts allow you to invest with a more relaxed mindset.

Core Portfolios are made up of low-cost ETFs, which are tax-efficient options for taxable accounts. This means you can save money on taxes while still growing your investments.

If you want to customize your portfolio, you can opt for SRI (Socially Responsible Investing) and ESG (Environmental, Social, and Governance) options.

E-Trade offers two main platforms for trading: the standard web and mobile platforms, and the advanced Power E*TRADE platform.

The standard platforms are complimentary and suitable for most investors, allowing them to trade stock, options, and funds with ease. You can access them from the web or mobile devices.

The Power E*TRADE platform is designed for dedicated traders who use complex strategies. It offers more robust charting tools and technical screeners, and is also complimentary.

Some of the features of the Power E*TRADE platform include an earnings move analyzer, exit plan, over 145 chart studies and drawing tools, risk/reward probabilities, and technical pattern recognition.

You can customize the layout of the Power E*TRADE platform by dragging data feeds, and even choose between a white or black background.

Here are the types of accounts you can have with E-Trade:

The Power E*TRADE platform offers seamless trading experiences from the home, office, or on the go, making it perfect for frequent traders.

E*Trade's pricing is very competitive, with commission-free trades on stocks, options, mutual funds, and ETFs. This means you won't pay a dime for these trades, a big plus for frequent traders.

Fees do apply to some trades, though. For example, options contracts cost $0.65 per contract, unless you trade at least 30 times per quarter, in which case it's $0.50 per contract.

Some trades also come with a higher fee, like OTC stocks, which cost $6.95 ($4.95 with at least 30 trades per quarter). Bonds are $1 per bond, with a minimum of $10 and a maximum of $250.

Here's a breakdown of the fees:

E*TRADE's pricing is straightforward and competitive with most online brokerages. Commission-free trades on stocks, options, mutual funds, and ETFs are a big draw.

The cost of trading options contracts is $0.65 per contract, although you can get a discount to $0.50 per contract if you make at least 30 trades per quarter. This can add up to some savings if you're an active trader.

Fees for OTC stocks are $6.95, although this drops to $4.95 if you meet the quarterly trade threshold. Bonds cost $1 per bond, with a minimum of $10 and a maximum of $250.

Futures trading comes with a base fee of $1.50 per contract, plus additional fees. Cryptocurrency futures, in particular, incur a higher fee of $2.50 per contract.

E*TRADE's Core Portfolios come with a 0.30% annual fee on balances above $500. You'll also need to meet a minimum opening balance of $500 to access this service.

Broker-assisted trades come with a higher fee, ranging from $20 to $25 per trade. This can be a significant cost if you need assistance with your trades.

Here's a quick rundown of E*TRADE's trading fees:

E*TRADE offers continuous promotions for new customers to earn bonus cash by making qualifying deposits within the first 60 days. You can check out our list of the best new brokerage account promotions here.

To become eligible for these promotions, you need to enter the current promo code during the signup process.

E*TRADE offers a wide range of account types, investment types, and mutual funds, making it a one-stop-shop for investors.

You can trade stocks and ETFs for $0 commissions, and purchase shares of thousands of mutual funds for $0 commissions as well, with costs ranging from $20 to $140 typically.

E*TRADE's flexibility is one of its best features, allowing you to trade on a plane from your phone or at your desk on one of its award-winning desktop platforms.

If you're looking for alternatives, consider options that offer fractional investing, which E*TRADE doesn't explicitly mention as an option.

If you're looking for alternatives to E*TRADE, you have plenty of options to consider. Most of these alternatives offer fractional investing, which allows you to buy a portion of a stock rather than the whole thing.

Some of these alternatives provide different investment options and research tools that can be a better fit for your needs. For example, they may offer a wider range of investment products or more advanced research features.

One key advantage of these alternatives is that they often provide more flexibility in terms of investment options. This can be especially useful if you're just starting out or if you have a complex financial situation.

In addition, many of these alternatives have more user-friendly platforms than E*TRADE. This can make it easier to navigate and find the information you need.

When comparing online brokers, one of the key factors to consider is the minimum deposit required to open an account. Fidelity Investments has a minimum deposit of $0.00, making it a great option for those just starting out.

Fidelity Investments also offers a wide range of no-load mutual funds, with a staggering 3,396 options available. This is significantly more than E*TRADE, which offers 6,310 no-load mutual funds.

If you're looking for a broker with a high star rating, Fidelity Investments and Charles Schwab are both excellent choices, with ratings of 4.8 and 4.7 respectively. E*TRADE, on the other hand, has a slightly lower rating of 4.5.

Here's a quick comparison of the three brokers:

Each of these brokers also offers fractional share trading of stocks and new spot Bitcoin & Ethereum ETFs, making them well-suited for investors with a variety of needs.