E*TRADE Review
Digital online investment platforms with excellent mobile apps
E*TRADE is a subsidiary of Morgan Stanley. Offering a wide range of investments, including stocks, ETFs, mutual funds, bonds, options, and futures, it was awarded Best Web Trading Platform and Best Investor App at Stockbrokers.com Annual Review.
Two user-friendly platforms, E*TRADE and Power E*TRADE, are available as online, desktop, and mobile applications. I particularly liked the customizable charting, research tools, and real-time market data, which help investors analyze market trends and identify trading opportunities.
E*TRADE was established in 1982 and is one of the largest online brokers in the U.S. It’s suitable for all investors, from beginners to seasoned traders.
E*TRADE makes it easy for people new to investing to make informed decisions by providing educational resources and access to research reports, analyst ratings, and other tools to evaluate potential investments. Its robust trading platforms include stock screeners, which filter stocks, mutual funds, and ETFs according to price, sector, ratings or other criteria set by you.
E*TRADE is suitable for all traders, including new and experienced traders.
E*TRADE supports people who are new to investing by providing articles, videos, and online courses. It also hosts a weekly live webinar aimed at investors who are just starting out.
Its trading platform has features such as customizable charting, screeners, and real-time market data that make understanding the stock market much easier. By using these tools, investors can feel more confident selecting products to trade.
E*TRADE also offers commission-free trading for certain investment products, such as ETFs, which can be an attractive option for new investors who want to keep costs low.
In addition to its standard platform, E*TRADE offers Power E*TRADE, a powerful trading platform designed for active traders and investors who require advanced trading tools and features. The platform is available to E*TRADE customers with an account balance of at least $1,000 or who are making at least 30 trades per quarter.
Power E*TRADE includes customizable charting, real-time market data and news, and a range of order types, including advanced conditional orders. The platform also offers access to streaming CNBC TV and audio, along with a range of research & analysis tools. It has a one-click trading feature enabling investors to execute trades with just one click and customizable hotkeys.
E*TRADE products don’t have any account minimums or maintenance fees, but you may need to pay certain transaction fees, fund expenses, brokerage commissions, or service fees.
E*TRADE is transparent about its pricing structures, and I appreciated how easy it was to access fee and commission information on its website without needing to register my details first.
| Account minimum | Pricing | |
|---|---|---|
| Stocks and trading | $0 | $0 commission |
| Options | $0.50 to $0.65 per contract | |
| Bonds | $0 | $1 per bond (minimum $10, maximum $250) |
| Futures | $0 | $1.50 per contract per side + fees |
| Retirement and IRA plans | $0 | $0 annual fee |
| ETFs | $0 | $0 per trade |
| Mutual funds | $0 | $0 commission for no-load, no transaction fee funds. (Prices for load funds are available in its prospectus) |
E*TRADE offers a wide selection of product choices and terms, including stocks, options, mutual funds, and exchange-traded funds (ETFs).
You can trade stocks listed on major U.S. exchanges, as well as some international markets. E*TRADE provides real-time quotes, customizable charts, and other tools to help you research stocks. It charges a commission of $0 per trade for online U.S.-listed stock trades. However, fees may apply for certain trades or stocks listed on international exchanges.
E*TRADE offers a variety of options trading tools and resources, including options chains, options calculators, and a strategy optimizer. You can trade options on various underlying securities, including stocks, ETFs, and indices. E*TRADE charges a commission of $0.50 to $0.65 per options contract.
E*TRADE offers access to thousands of mutual funds, including some from leading fund families. There are thousands of no-load, no-transaction-fee mutual funds, which means there is no commission to buy or sell shares of these funds. However, some mutual funds may carry management or redemption fees.
You can trade both passive and actively managed ETFs commission-free, and access research & analysis tools to help you evaluate potential investments. E*TRADE offers a selection of commission-free ETFs, which means there is no commission to buy or sell shares of these funds. However, there may be fees for trading other ETFs.
E*TRADE's account setup process is generally quick and straightforward. As it’s a fully digital account opening process, it can be done entirely online without any need to print and mail paper forms.
To get started with E*TRADE, you will need to carry out the following steps:
E*TRADE offers two mobile apps—the E*TRADE app and the Power E*TRADE app. Both are available for iOS and Android devices and offer secure access to your account so that you can trade and manage your investments on the go.
The E*TRADE app offers streamlined trading and investing capabilities, while the Power E*TRADE app provides advanced-level tools for active traders, such as customizable charting and streaming market data.
Both apps provide access to real-time market data, streaming news from Bloomberg TV, third-party research, and breaking news. Stockbrokers.com awarded E*TRADE Best Investor App in its annual review for 2023.
E*TRADE is a trusted company providing services to investors for over 40 years. It is regulated by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
It takes online security seriously and employs several layers of protection to help keep your account safe. This includes encryption, firewalls, dedicated fraud protection teams, and multi-factor authentication (MFA), which requires you to enter a unique code each time you log in or complete certain transactions.
E*TRADE also has a Fraud Protection Guarantee, which will cover any loss that results from the unauthorized use of its brokerage, banking, or lending services.
E*TRADE is a member of The Securities Investor Protection Corporation (SIPC), which protects customer accounts up to $500,000 for securities and cash (including $250,000 for cash only). Its parent company Morgan Stanley also maintains additional insurance with an aggregate limit of $1 billion.
However, it is worth noting that the business is not accredited by the Better Business Bureau (BBB) and does not have a BBB ranking. Its BBB customer score is only 1.15 out of 5, based on 56 reviews. Similarly, its score on Trustpilot is 1.2, with some customers mentioning difficulties withdrawing their funds.
Customers can get 24/7 customer support via its support line 800-387-2331. However, there are some complaints on customer review sites that it can take a long time to get through. It doesn’t provide an email address on the website, and there’s no web chat available.
E*TRADE provides plenty of resources online, including FAQs, videos, and demos of its platforms. It also runs regular live webinars on Mondays, Tuesdays, and Wednesdays at 11am ET, which include a question-and-answer session.
E*TRADE is a popular online trading platform that has won numerous awards for its products and services. It provides access to a wide range of investments, including stocks, bonds, mutual funds, ETFs, options, and futures.
It's a fully digital platform, and its mobile apps outperform many of its competitors. The Power E*TRADE platform offers advanced features for active traders who want access to cutting-edge trading tools. While the base E*TRADE app has no minimum balance requirements, you must make at least 30 trades per quarter or have an account balance of $1,000 to access Power E*TRADE app.
Overall, E*TRADE is a reliable and secure broker with advanced trading tools. However, I found the lack of an online customer support chat feature frustrating.
Harborside 2, 200 Hudson Street, Suite 501, Jersey City, New Jersey
What types of accounts can I open with E*TRADE?
E*TRADE offers a variety of account types, including individual and joint brokerage accounts, retirement accounts such as Traditional and Roth IRAs, custodial accounts, and business accounts (such as Sole Proprietorship and Partnership accounts). It also offers managed portfolios through E*TRADE Core Portfolios and E*TRADE Personalized Investments.
How much does it cost to open an account with E*TRADE?
E*TRADE doesn’t charge an account opening fee. However, there may be fees associated with certain types of accounts or services, such as trading commissions, account maintenance fees, and mutual fund fees. It's important to review E*TRADE's fee schedule carefully before opening an account.
What types of investments can I trade on E*TRADE?
E*TRADE provides a diverse range of investment options, giving you the flexibility to tailor your portfolio to your individual investment goals and risk tolerance. Products include stocks, bonds, options, mutual funds, exchange-traded funds (ETFs), and futures.
* Open a new eligible E*TRADE brokerage account, fund your account within 60 days of opening, and earn a cash credit bonus of up to $1,000, depending on the size of your deposit. Offer good for one use per customer, on a single account. Other fees apply. Please read full terms and conditions on E*TRADE's website.
