Why choose E*TRADE
E*TRADE is a US stockbroker regulated by top-tier authorities SEC and FINRA.
It offers low trading fees, including free stock and ETF trading. In addition, it has one of the best mobile trading platforms on the market, and offers plenty of high-quality research tools such as trading ideas and strategy builders. It is a good choice for beginner investors.
E*TRADE's product portfolio only covers US markets and forex trading is not available. The broker doesn't accept bank cards or electronic wallets for money transfers.
BrokerChooser gave E*TRADE a 4.5/5 rating based on analyzing 600+ criteria and testing via opening a live account.
- Low trading fees (free stock and ETF trading)
- User-friendly mobile trading platform
- Great research tools
- Pays interest on uninvested cash
Fees
- Free stock and ETF trading
- Some mutual funds and bonds are free
- Low non-trading fees
We compared E*TRADE's fees with two similar brokers we selected, Charles Schwab and Fidelity. These competitors were selected based on objective factors like products offered, client profile, fee structure, etc. See a more detailed comparison of E*TRADE alternatives.
Commission-free stock and ETFs
It’s extremely great as E*TRADE has commission-free US stock trading.
Broker | US stock |
---|---|
E*TRADE | $0.0 |
Charles Schwab | $0.0 |
Fidelity | $0.0 |
High margin rates
E*TRADE USD margin rate fees are higher than the industry average. USD margin rate fees are calculated as follows: Base rate + tiered markup. Markup under $10,000: +2.50%
Broker | USD margin rate |
---|---|
E*TRADE | 14.2% |
Charles Schwab | 13.6% |
Fidelity | 13.6% |
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%.
Low options commission
E*TRADE US stock index options fees are about half of the industry average. US stock index options fees are calculated as follows: $0.65 fee per contract; $0.50 with 30+ trades per quarter
Broker | US stock index options |
---|---|
E*TRADE | $6.5 |
Charles Schwab | $6.5 |
Fidelity | $6.5 |
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.
No inactivity fee, average withdrawal fee
It charges no inactivity fee and no account fee.
Broker | Inactivity fee | Withdrawal fee |
---|---|---|
E*TRADE | $0 | |
Charles Schwab | $0 | |
Fidelity | $0 |
There is no withdrawal fee if you use ACH transfer. Withdrawals to other banks using wire transfer cost $25.
Other commissions and fees
High mutual fund commission: trading mutual funds involves the following charges - $19.99 per trade; ca. 4,500 free mutual funds.
Average futures fees: US index futures fees are as follows - $1.50 fee per contract.
Low bond commission: US treasury bonds come with the following charges - $0 for Treasury bonds, other bonds secondary transaction fee: $1/bond, min $10, max $250..
Broker | Mutual fund | US micro e-mini stock index futures |
---|---|---|
E*TRADE | $20.0 | $15.0 |
Charles Schwab | $25.0 | $22.5 |
Fidelity | $37.5 | - |
Safety
- Majority of clients belong to a top-tier financial authority
- High level of investor protection
- Banking background
Deposit and withdrawal
- No deposit fee
- User-friendly
Account opening
- Fully digital
- No minimum deposit
- User-friendly
Mobile app
- User-friendly
- Good search function
- Good variety of order types
Web trading platform
- User-friendly
- Clear fee report
- Two-step (safer) login