E*TRADE Review 2023

How we ranked fees

We ranked E*TRADE's fee levels as low, average or high based on how they compare to those of all reviewed brokers.

First, let's go over some basic terms related to broker fees. What you need to keep an eye on are trading fees and non-trading fees.

• Trading fees occur when you trade. These can be commissions, spreads, financing rates and conversion fees.
• Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.

In the sections below, you will find the most relevant fees of E*TRADE for each asset class. For example, in the case of stock investing the most important fees are commissions.

We also compared E*TRADE's fees with those of two similar brokers we selected, Charles Schwab and Fidelity. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of E*TRADE alternatives.

To have a clear overview of E*TRADE, let's start with the trading fees.

E*TRADE trading fees

E*TRADE's trading fees are low. Let's see a breakdown of the various asset classes.

Stock fees and ETF fees

Stock and ETF trades are commission-free, which is superb. This is part of an industry-wide trend that's taken hold among many US brokers since 2019.

The broker charges a $6.95 commission for trading OTC stocks; the commission is $4.95 for clients who make at least 30 stock, ETF or option trades a quarter. 
If you prefer stock trading on margin, check out E*TRADE's margin rates.

The margin rate is charged when you trade on margin. This basically means that you borrow money or stocks from your broker to trade. On this borrowed money/stock, you have to pay interest. It can be a significant proportion of your trading costs.

E*TRADE's margin rate is volume-tiered. It applies a base rate plus a premium/discount depending on the financed amount. The base rate is set at E*TRADE's discretion and may be readjusted from time to time; at the time of our review, the base rate was 11.45%.

E*TRADE margin rates are high.

Fund fees

E*TRADE fund fees are generally high at $19.99 per trade. On the positive side, E*TRADE does not charge a commission for ca. 4,500 mutual funds. If you sell these no-transaction-fee funds within 90 days after the purchase, though, a $49.99 fee is charged.

Bond fees

E*TRADE has low bond fees. Bond fees vary based on the bond type. We calculated the fees for US Treasury bonds.

Similarly to Charles Schwab and Fidelity, E*TRADE charges no commission for Treasury bonds. For other bonds, such as corporate bonds, the commission is $1 per bond; a $10 minimum and a $250 maximum apply.

Options fees

E*TRADE options fees are low.

E*TRADE charges a volume-based fee, The fee is $0.65 per contract for the first 30 trades per quarter and $0.50 per contract above that limit.

Futures fees

E*TRADE futures fees are average.

Futures fees are fixed at at $1.5 per contract, except for cryptocurrency futures, which cost $2.5 per contract.

Non-trading fees

E*TRADE has low non-trading fees. It charges no inactivity fee and no account fee.

There is no withdrawal fee if you use ACH transfer. Withdrawals to other banks using wire transfer cost $25.

Can you open an account?

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E*TRADE caters to US clients. Similarly to Robinhood and Webull, the retail brokerage branch of E*TRADE is available for US-based clients only.

What is the minimum deposit at E*TRADE?

The required E*TRADE minimum deposit is $0, which is great if you would like to start investing with a low amount.

The minimum deposit can be more if you want to trade on margin or use E*TRADE's asset selection services.

*You trade with money borrowed from the broker, also called trading on leverage.

Account types

E*TRADE provides several account types.

In this review, we tested the Individual Brokerage Account with the basic option level. E*TRADE offers 4 different levels of option trading. If you are looking for uncovered option trading, you need a margin account and level 3 or 4 upgrades. You can find further information about the different option levels here. 

How to open your account

The account opening process is user-friendly and fully digital. After completing the online account opening form, you can easily upload a copy of your ID card of choice and your SSN. Although online application only took some 15 minutes, account verification was very slow, as it took 7 business days.

Steps to open an E*TRADE account: 

1. Choose the account type
2. Add personal information and other details needed to verify your account, such as your Social Security Number, residency and employment status
3. Select your investment profile and margin trading preferences
4. Review your application and create your E*TRADE account ID
5. Set up funding preferences

Account base currencies

At E*TRADE, the only available base currency is USD.

A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. These usually offer bank accounts in several currencies with great currency exchange rates, as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.If you have a personal bank account in a currency other than USD, then you will be charged a conversion fee.

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Deposit fees and options

E*TRADE charges no deposit fees. You can use checks, ACH and wire transfers to deposit funds.

Unfortunately, credit/debit cards and electronic wallets are not accepted, similarly to E*TRADE's closest competitors.

*If you have access to E*TRADE's banking services, E*TRADE credit/debit cards are accepted for deposits.

We tested ACH transfer and it took 2 business days.

You can only deposit money from accounts that are in your name.

E*TRADE withdrawal fees and options

E*TRADE charges no withdrawal fees if you use ACH withdrawal, but wire transfers cost $25.

How long does it take to withdraw money from E*TRADE? We tested the ACH withdrawal and it took 2 business days.

You can only withdraw money to accounts that are in your name.

How do you withdraw money from E*TRADE?

• Log in to the account
• Go to 'Accounts'
• Select the 'Transfers' menu, then click 'Transfer money'
• Choose your E*TRADE account in the 'Transfer from' field and your previously linked external account in the 'Transfer to' field
• Add the amount you wish to withdraw and set the frequency and date of the withdrawal
• Preview and initiate the withdrawal

E*TRADE has two trading platforms, which differ in the range of tradable products and their target audience.

There is also a legacy desktop trading platform called E*TRADE Pro. However, E*TRADE doesn't promote this platform to new clients.

We tested the E*TRADE web platform in this review, as it is the default trading platform. It is available in English and Chinese.

Look and feel

The E*TRADE web trading platform is user-friendly. On the flip side, the platform is not customizable.

Login and security

E*TRADE provides two-step authentication. To use it, you have to download the VIP Access mobile app to your device.

In addition, when you first log in on a new device, you have to register the new device by a security code or call. After registration, you can access your account using a simple ID and password combo.

Search functions

The platform's search functions are good; you can search by typing a company's name or an asset's ticker.

There is also an auto-suggestion feature that shows relevant results.

Placing orders

There is a good selection of order types to choose from: 

• Market 
• Market on Close (MOC)
• Limit
• Stop
• Stop-limit
• Trailing stop %
• Trailing stop $

To get a better understanding of these terms, read this overview of order types.

There are also order time limits you can use:

• Good 'til Day (GTD)
• All or Nothing (AON)

These are more sophisticated order terms and limits than what you will find at most brokers. For example, All or Nothing (or All or None) is a type of order limit that instructs the broker not to fill the order unless there are enough shares available (as specified by the order).

Alerts and notifications

You can set up alerts and notifications by searching for the keyword 'alerts' in the keyword search bar in the top right corner. It will take you to the 'Set & Manage Alerts' page, where creating alerts and notifications is a breeze.

Portfolio and fee reports

E*TRADE has clear portfolio and fee reports. You can find them in the 'Accounts' > 'Portfolios' menu.

It is great that you can easily customize the report by choosing from some 100 different columns, such as commission, Net Asset Value, Dividend, etc.

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Similar to the web trading platforms, we tested the E*TRADE mobile application, but a Power E*TRADE mobile application is also available.

It is available for both iOS and Android. We tested it on iOS. The mobile trading supports the following languages: English, French and Spanish.

In functionality and design, it's almost the same as the web trading platform. The E*TRADE mobile trading platform is user-friendly; has a great search function; offers a wide range of order types, and you can easily set alerts and notifications. However, two-step authentication is not available. E*TRADE only allows two-step to login via a VIP Access App for their web platform.  

On the other hand, you can use TouchID, which is a convenient feature.

Though the web and the mobile trading platforms are quite similar, we assign a higher weight to simplicity and ease-of-use when scoring mobile trading platforms. That is why the E*TRADE mobile trading platform has a higher score than the web trading platform.

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E*TRADE has a solid product range, but it doesn't stand out in any category, with the possible exception of bonds. Elsewhere, its selection is average or below average.

Stocks and ETFs

Similarly to its closest competitors, E*TRADE covers the US market only.

You can trade stocks on the following stock exchanges: NYSE, NASDAQ, AMEX, OTCBB, OTC (other).

Funds

E*TRADE's fund selection is OK, it is similar to those offered by rivals Charles Schwab and Fidelity.

You will find funds from the biggest fund providers such as BlackRock and Vanguard, but also from smaller ones.

Bonds

E*TRADE has a good bond selection compared with its closest competitors.

The bond selection covers both government and corporate bonds.

Options

At E*TRADE, you can trade options on the major US exchanges like CBOE. This selection is largely similar to its competitors.

Futures

E*TRADE's futures selection is smaller than what its most immediate competitors offer. You can trade futures on three exchanges: CME Group, ICE US and CFE. In addition, you can also trade Bitcoin futures.

E*TRADE Portfolios

E*TRADE offers a few types of portfolios, which is great if you need help managing your investments. You'll get a recommendation either from an expert or E*TRADE's robo-advisor technology. We liked that the portfolios are highly customizable and easy to modify.

Research tools can be found on both the E*TRADE and the Power E*TRADE web trading platforms.

While the E*TRADE web trading platform is best for research related to basic investment topics like stocks and ETFs, the Power E*TRADE platform is better suited for researching complex products like options or futures.

Trading ideas

E*TRADE provides trading ideas and recommendations for stocks, ETFs, and mutual funds.

Some stock trading ideas come from third-party providers, including analyst outlooks from TipRanks, SmartConsesus, Thomson Reuters, MorningStar and MarketEdge, among others. E*TRADE creates a shortlist from these trading ideas (mainly including commission-free ETFs and mutual funds), called All-star Funds.

Fundamental data

E*TRADE offers fundamental data, mainly on stocks. You will find data such as financial statements for the past 5 years, as well as basic performance and rating metrics under the 'Fundamentals' menu. Further financial information is available under the 'Earnings' menu.

Charting

E*TRADE has good charting tools. You can use about 30 technical indicators.  The charts are easily editable in both E*TRADE platforms.

News feed

The news feed is great. It is easily readable and provides good visual information, mainly using charts. It is provided by third parties such as Briefing.com and Morningstar. You can also reach Bloomberg TV from the front page.

Compare research pros and cons

You can contact E*TRADE only via phone, which we do not find to be acceptable customer service on the current market.    

There is no email or live chat service, which was a disappointment, and the E*TRADE support team is not available 24/7.

E*TRADE's phone support left us with mixed feelings. When we last tested, we had to wait a while to connect to an agents, but did receive relevant answers.

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At E*TRADE you can learn in the following ways:

• Platform tutorial videos
• General educational videos
• Webinars
• Quality educational articles
• Demo account for Power E*TRADE platform

E*TRADE's educational materials are high quality overall and cover a wide range of topics.

Videos and educational articles offered by E*TRADE are suitable for beginners and offer useful content.

Webinars focus on various subjects, at different experience levels. If you miss them real-time, they are also available for later viewing. You can find them under the 'Knowledge' > 'Events' menu.

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Is E*TRADE regulated?

Yes, it is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Is E*TRADE safe?

To be certain, we highly advise that you check two facts:

• how you are protected if something goes wrong
• what the background of the broker is

How you are protected

This is important for you because the investor protection amount and the regulator differ from country to country. At E*TRADE, this is not an issue as all customers are handled by E*TRADE Securities LLC (ETS) or Morgan Stanley Smith Barney LLC (MSSB), and are covered by the US investor protection scheme called SIPC.

One exception however is clients opening futures accounts, as they are handled by E*TRADE Futures LLC, which provides no investor protection.

The SIPC investor protection scheme protects against the loss of cash and securities in case the broker goes bust. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash. This is substantially higher than what most other investor protection schemes provide.

Not all investments are protected by SIPC. In general, SIPC covers notes, stocks, bonds, mutual funds, and other investment company shares, and other registered securities. It does not cover instruments such as unregistered investment contracts, unregistered limited partnerships, fixed annuity contracts, currency, and interests in gold, silver, or other commodity futures contracts or commodity options.

E*TRADE does not provide negative balance protection.

Background

E*TRADE was established in 1982. The longer track record a broker has, the more proof we have that it has successfully survived previous financial crises.

E*TRADE Bank, an affiliated company of E*TRADE Securities LLC under E*Trade Financial Corporation, has a banking license, and as such, it is subject to tougher regulation than brokers.

E*TRADE Financial Corporation is listed on the NASDAQ, which is a big plus for safety as E*TRADE releases financial statements regularly and transparently.

Having a banking license, being listed on a stock exchange, providing financial statements, and being regulated by a top-tier regulator are all great signs for E*TRADE's safety.

Find your safe broker

We recommend E*TRADE for investors and traders looking for solid research and a great mobile trading platform.

Below you can find links to all aspects of E*TRADE in this comprehensive collection.

Lower fees, lower costs?

We detailed this in our E*TRADE fees article.

What about the minimum deposit?

Our ultimate guide to the E*TRADE minimum deposit is updated regularly.

How to start your E*TRADE account?

Look no further than our evaluation of the E*TRADE account opening.

How's their trading app?

Here's our expert view after checking the E*TRADE trading app.

Is the quality of customer service satisfactory?

All you need to know about the E*TRADE customer service.

Legit or scam?

Is E*TRADE legit features all the key aspects you need to look at to see if a broker is safe and legit.

Free or premium? Or both?

A glance at actual costs and whether E*TRADE is really free.

Is this broker good for beginners?

We checked it in Is E*TRADE good for beginners.

Should you buy your silver bullets on E*TRADE?

Research for silver bugs in the Silver buy on E*TRADE guide

I want to trade options, are they available at E*TRADE?

We explored the topic in Can you trade options on E*TRADE?

What is the minimum account balance at E*TRADE?

Check out the current account balance requirements at E*TRADE in our What is the minimum account balance at E*TRADE article.

Looking for commission and fees data for E*TRADE?

We collected them in E*TRADE commission and fees.

How do you withdraw money from E*TRADE?

We tested it and collected the options and costs in How to withdraw money on E*TRADE.