E*TRADE (ETrade) Review

E*TRADE (ETrade) is a well-known online platform for trading stocks, options, and more. It is the top online platform for trading financial instruments on major global exchanges. In this review, we will give you all the details about E*TRADE, including an overview of the company, its pros and cons, regulations and security, fee structure, educational resources, and customer support. This will help you make the most of your investments. Whether you’re new to trading or have experience, this review will help you decide if E*TRADE is right for you. 

🏢 Headquarters United States
📅 Year founded 1982
🗺️ Regulation Securities and Exchange Commission USA (SEC), Financial Industry Regulatory Authority (FINRA) Clients opening futures account – Commodity Futures Trading Commission (CFTC)
💻 Trading platform: Power E*TRADE and E*TRADE (for trading), Liberty (for investment portfolio management)
💰 Account currency: USD
📊 Accounts: E*TRADE (for Power E*TRADE and E*TRADE portfolio)
💵 Withdrawal options: Replenishments: depositary checks (mobile and postal), bank transfer to the banking details Withdrawals: transfer to a bank account in E*TRADE Bank or to another financial institution account
💵 Deposit options: Wire Transfer, Transfer money electronically, By check, Transfer an account
🚀 Minimum deposit: $0
⚖️ Leverage: Up to 1:1.5
☪️ Islamic account (swap free) No
🎮 Demo Account No
💱 Spread: No
🔧 Instruments: Stocks, options, futures, bonds, investments in mutual investment and ETF funds
📋 Orders execution: Market Maker (Not indicated )
☎ Customer Support: 24/7
📚 Education Yes

What is E*TRADE?

E*TRADE is a brokerage company owned by Morgan Stanley, a big financial company. It has been in business since 1982. E*TRADE lets people trade stocks, options, futures, bonds, and ETFs, and invest in mutual funds. In the early 1990s, E*TRADE used the growing popularity of the internet to create and improve its online platform, making it a strong and popular trading service.

Fees

The broker’s analysis of direct and hidden commissions showed the following: the trading fee amount depends on the assets traded. There are also extra fees for certain types of contracts, like index-type options. When trading securities from foreign exchange companies, you will pay a tax on financial transactions, which ranges from 0.12% to 0.3% of the total transaction value, depending on the country. Additionally, keeping depositary receipts for American shares costs between $0.005 and $0.05 per unit. You can find all fee information on the E*TRADE website.

There are no swaps for transferring positions, but there are fees for holding depositary receipts of American shares. We also compared the spread sizes of various brokers who offer access to the foreign exchange market. E*TRADE doesn’t trade in the Forex market but is included in the table for general information.

Pros and Cons

Pros Cons
Easy to use for online trading with mobile apps. No tools for trading in the Forex market.
No fees for trading stock options on American exchanges. Training is only in English.
24/7 customer support through online chat. Leverage is capped at 50% of your own funds.
No option to open a demo account to try out the broker.
Customer support and the website are only in English.

Regulation and Security

The SEC (U.S. Securities and Exchange Commission) regulates E*TRADE Financial Holdings, LLC’s stock activities. E*TRADE broker belongs to FINRA (Financial Industry Regulatory Authority) and SIPC (Securities Investor Protection Corporation). The company also follows the rules of the NFA (National Futures Association) and the FDIC (Federal Deposit Insurance Corporation).

Is E*TRADE regulated?

Yes, the SEC and FINRA regulate E*TRADE.

Deposit and Withdrawal

E*TRADE doesn’t charge fees for deposits, and transferring money is easy. However, you can only use bank transfers, and wire transfer withdrawals have a high fee.

You can use checks, ACH, and wire transfers to deposit funds, but credit/debit cards and electronic wallets are not accepted. This is similar to E*TRADE’s closest competitors. If you use E*TRADE’s banking services, you can deposit with E*TRADE credit/debit cards.

There are no withdrawal fees for ACH withdrawals, but wire transfers cost $25. We tested ACH withdrawal, which took 2 business days.

Account Types

The broker offers an E*TRADE account on both of its platforms. With an E*TRADE account, you can trade in the stock market. There are no brokerage fees for US stocks and bonds. Account holders can access training materials and online support. However, there is no demo account. E*TRADE stands out because it provides clients with advanced online trading technologies.

Trading Platform

E*TRADE has two free trading platforms available to all customers: E*TRADE Web and Power E*TRADE. There are no trade activities or balance minimums required.

E*TRADE Web provides free streaming market data, real-time quotes, live market commentary, analyst research, stock screeners, and more. The dashboard allows you to track your accounts, create watch lists, view market data, and make trades, including complex options strategies.

For active traders, there is Power E*TRADE. This platform, which E*TRADE acquired from OptionsHouse, offers real-time data, over 100 technical studies, streamlined trade tickets, customizable options chain views, and trading ladders.

E*TRADE also allows customers to buy into IPOs and offers over-the-counter trading, though it costs more than some competitors. Commissions for OTC trades start at $6.95 and drop to $4.95 for frequent traders.

Keep in mind that E*TRADE accepts payment for order flow. This means brokers might route orders to market makers based on the potential earnings rather than the best price for the investor. However, many other online brokers do the same.

Education

E*TRADE offers a wide range of educational content in its library, organized by topic and skill level. You can find information on many investing topics, from stock trading to retirement, with dozens of articles across eight categories. E*TRADE also provides many webinars, offering at least 25 free ones each month, with recordings available to watch later.

Customer Support

E*TRADE helps customers with phone, chat, email, and in-person support at branches. You can call them anytime because they’re available 24/7. When customers called, the representatives gave accurate and helpful answers.

Conclusion

Based on our tests, we found that E*TRADE is one of the best platforms for beginners. It’s easy to use on both the web and mobile, and it offers lots of helpful learning materials. Plus, it’s regulated by top authorities like the SEC and FINRA. E*TRADE has low fees, including free trading for stocks and ETFs. Its mobile app is one of the best out there, and it has plenty of useful research tools like trading ideas and strategy builders. Overall, E*TRADE is a reliable broker with easy-to-use tools for all your trading needs.

FAQs

Is E*TRADE a good choice?

E*TRADE is a great option! It’s one of the best online stockbrokers in the U.S. and does really well in many areas. Most investors find it a good choice.

How much does it cost to start an E*TRADE account?

You don’t need any money to open an E*TRADE account, and there are no rules about having a minimum amount of money in there. Plus, you can even do pretend trading with “paper money” if you want to practice before using real money.

Is my money safe with E*TRADE?

Absolutely! E*TRADE protects your money. If anything goes wrong, they’ve got you covered with account protection. You’re safe for up to $500,000 for securities and cash (and $250,000 for cash) thanks to the Securities Investor Protection Corporation, or SIPC.