Our Verdict

E*TRADE (from Morgan Stanley) emerges as a prominent online broker, offering a diverse array of investment options and accessible trading tools across multiple platforms. Its user-friendly interface and extensive educational resources make it particularly appealing to new investors, while seasoned traders can take advantage of a wide range of analysis tools and research capabilities.
Despite the absence of advanced features such as direct crypto exposure and international exchange trading, E*TRADE’s platform remains well-rounded and suitable for all types of investors. The acquisition by Morgan Stanley has further enhanced the research capabilities, solidifying its position as a dynamic and powerful trading service.
Overall, E*TRADE provides a compelling combination of accessibility, educational support, and diverse trading features, making it a favorable choice for investors at various experience levels.
Pros
- Provides an intuitive platform suitable for beginners and advanced traders alike.
- Delivers excellent customer support.
- Enables commission-free stock, options, mutual fund, and ETF trades.
- Offers robust educational resources, including webinars, courses, and articles.
- Enables paper trading for investors looking to test new strategies.
- Delivers superb tools and resources for options and futures traders.
Cons
- Misses an integrated trade journal feature for tracking trades and strategies.
- Lacks superior customer service, particularly by phone.
- Does not offer fractional shares for investment.
- Excludes access to cryptocurrency trading.
- Prevents trading in foreign exchange (forex) markets.
- Accepts only bank transfer.
Who E*TRADE Is Best For

E*TRADE is an ideal choice for you if you:
- Seek a user-friendly platform with comprehensive tools for trading and investing.
- Are an active trader looking for advanced trading platforms and research tools.
- Desire commission-free trades for stocks, ETFs, and options.
- Appreciate having access to a wide range of investment options, including mutual funds, bonds, and futures.
- Value professional, round-the-clock customer support for your trading needs.
- Require educational resources and guidance to make informed trading decisions.
- Want to manage your investments and banking needs under one roof for convenience.
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Who E*TRADE Isn't Right For
E*TRADE might not be the best fit for you if you:
- Are looking for the simplest platform with minimal features for casual, infrequent trading.
- Operate with a very limited investment budget and prioritize platforms with no account minimums.
- Prefer face-to-face, in-person advice and services over online and phone-based customer support.
- Need access to international markets and a wide range of foreign stocks for trading.
- Seek the lowest possible fees for highly active or professional day trading.
What E*TRADE Offers
E*TRADE provides investors with a comprehensive selection of investment assets across its platforms, including:
- Futures/commodities
- Bonds (Corporate, Municipal, Treasury, CD, etc.)
- Single-leg and multi-leg options contracts
- Mutual funds
- Robo-advisor
- Stocks long and short
- OTCBB
E*TRADE Details

Futures/commodities
E*TRADE enables investors to trade futures contracts, which are agreements to buy or sell a specific quantity of a commodity or financial instrument at a predetermined price on a future date.
Bonds (Corporate, Municipal, Treasury, CD, etc.)
The platform facilitates trading in various types of bonds, including corporate bonds issued by corporations, municipal bonds issued by state and local governments, treasury bonds issued by the US government, and certificates of deposit (CDs) offered by banks.
Single-leg and Multi-leg Options Contracts
E*TRADE offers the opportunity to trade single-leg options contracts, as well as more complex multi-leg options strategies, allowing investors to customize their options trading based on their investment objectives and risk tolerance.
Mutual Funds
E*TRADE offers access to a wide selection of over 6,500 mutual funds, providing investors with diversified investment options across various asset classes, investment styles, and fund families. Notably, E*TRADE has removed all fees associated with investing in mutual funds.
Robo-advisor
E*TRADE offers a robo-advisor service, which provides automated investment management and portfolio construction based on the investor’s financial goals, risk tolerance, and time horizon, utilizing algorithms and technology to create and manage a diversified investment portfolio.
Stocks Long and Short
E*TRADE allows investors to trade stocks, giving them the opportunity to buy shares in publicly traded companies for long-term investment or to engage in short selling, which involves borrowing shares and selling them with the intent to repurchase them at a lower price.
OTCBB (Over-the-Counter Bulletin Board)
E*TRADE provides access to OTCBB securities, which are stocks that are not listed on major stock exchanges such as the NYSE or NASDAQ and are instead traded through the OTC market.
E*TRADE Pricing
E*TRADE has adjusted its fees to remain competitive in the evolving landscape of online brokerage. Here’s a breakdown of E*TRADE’s costs:
Commission-Free Trading
E*TRADE offers $0 commissions on online stock, ETFs, and options trades, with no limitations on the number of shares that can be traded at this base commission rate.
Options Contracts
Options contracts, 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.
OTC Stocks
Trading OTC stocks incurs a cost of $6.95, which includes OTC, OTCBB, grey market, and OTC-traded foreign securities. This cost is reduced to $4.95 if the investor executes at least 30 stock, ETF, and options trades per quarter.
Mutual Fund Commissions
E*TRADE has eliminated its mutual fund commissions.
Margin Interest Rates
Margin interest rates vary from 14.20% for a balance less than $10,000 to 12.20% on balances of $250,000 or more as of July 27, 2023.
Bond Transaction Fees
Bond transaction fees are $1 per bond with a minimum of $10 and a maximum of $250.
Futures Transactions
Futures transactions cost $1.50 per contract, per side plus fees, and $2.50 per cryptocurrency futures contract, per side plus fees.
Account Transfers
When transferring accounts out of E*TRADE, there is a $25 fee for partial transfers and a $75 fee for full transfers.
Broker Assisted Trades
A live broker is available at $25, which is waived for extended hours and overnight session trades taking place between 4 a.m. and 7 a.m. Eastern.
Wire Transfers and Checks
There is no domestic wire fee for incoming wire transfers, but there is a $25 fee for outgoing wire transfers. E*TRADE charges $10 to send checks.
Platform Access
Access to the E*TRADE platforms is free of charge.
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Where E*TRADE Stands Out

E*TRADE stands out in several key areas, offering a comprehensive and reliable platform for various investment and trading needs:
Diverse Investment Options
E*TRADE provides access to a wide range of investment options, including stocks, bonds, mutual funds, ETFs, futures, and commodities, catering to the diverse needs of investors.
High-Performance VPS Hosting
E*TRADE’s VPS hosting is known for its high performance, making it an excellent choice for projects requiring powerful servers, with competitive pricing and a focus on performance.
Dedicated Server Hosting
E*TRADE offers dedicated server hosting, providing high-security enterprise hosting for websites and applications, ensuring dedicated resources and advanced security features to meet the needs of businesses with stringent security requirements.
Scalable Public Cloud Hosting
E*TRADE’s public cloud hosting offers high scalability on the cPanel platform for enterprises, providing flexible and scalable hosting solutions to accommodate the evolving needs of businesses and applications.
Where E*TRADE Falls Short
E*TRADE, while excelling in many aspects, may fall short in certain areas, which are important to consider when evaluating its services:
Limited Cryptocurrency Offerings
E*TRADE does not offer direct cryptocurrency exposure or trading, which may be a limitation for investors seeking to directly invest in or trade cryptocurrencies through the platform.
Margin Rates
While E*TRADE provides margin trading, its margin rates may be relatively higher compared to some other brokerage firms, which could potentially be a drawback for margin traders seeking the lowest rates.
Potential Payment for Order Flow
Active traders should take note that E*TRADE may receive payment for order flow, which could be considered a disadvantage for day traders, although the company maintains its commitment to providing the best possible trade execution.
Account Transfer Fees
E*TRADE imposes a higher-than-average $75 fee for full account transfers out, which may be a consideration for individuals looking for cost-effective account management options.
How to Qualify for E*TRADE
To qualify for E*TRADE, individuals can open and fund a new brokerage account with a qualifying deposit by a specified date. E*TRADE does not impose a minimum balance requirement to open an account, and there are no minimum balance or number of trades requirements to avoid inactivity. Additionally, there is no cost to open an E*TRADE account, and virtual trading with paper money is available for those who wish to practice before investing actual funds. E*TRADE’s platform provides access to a wide range of investment options, including stocks, bonds, ETFs, mutual funds, futures, and options, catering to the diverse needs of investors.
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Alternatives to E*TRADE
Fidelity Investments
Fidelity offers a range of investment options, including stocks, ETFs, mutual funds, and more. It provides commission-free online trading for stocks, ETFs, and options, with no account minimums. Fidelity also offers a variety of research tools and educational resources for investors.
TD Ameritrade
TD Ameritrade provides commission-free online trading for stocks, ETFs, and options. It offers a diverse range of investment products and tools, including thinkorswim, a powerful trading platform for active traders. TD Ameritrade also offers access to a wide selection of mutual funds and retirement planning resources.
Interactive Brokers
Interactive Brokers is known for its advanced trading platform and provides access to a wide range of investment products, including stocks, options, futures, and forex. It offers competitive pricing and a variety of trading tools for active traders. Interactive Brokers also provides access to global markets and a diverse selection of investment products.
Robinhood
Robinhood is a commission-free trading platform that offers stocks, ETFs, options, and cryptocurrencies. It is known for its user-friendly interface and accessibility to beginner investors. Robinhood also provides fractional shares and a cash management feature for account holders.
Customer Reviews
E*TRADE has an impressive rating of 4.4 out of 5 stars on NerdWallet and 3.6 out of 5 stars on Forbes. They appreciate E*TRADE for its user-friendly platform, comprehensive educational resources, and competitive pricing. Many customers find the value provided by E*TRADE justifies any associated costs.
E*TRADE stands out as a top-notch online brokerage firm, offering a wide range of investment options and advanced trading tools suitable for both novice and experienced investors. Customers acknowledge the quality services and features that E*TRADE offers, making it a preferred choice despite potential higher fees compared to other platforms.
Pro Tips
- Tailor E*TRADE’s desktop and mobile platforms to match your preferences and trading strategies.
- Use E*TRADE’s educational resources to make informed trading decisions and expand your expertise.
- Check out E*TRADE’s wide range of investment options, including stocks, bonds, mutual funds, ETFs, futures, and more.
- Enhance your trading capabilities with E*TRADE’s advanced tools for stock, options, and futures trading.
- Trade stocks, options, mutual funds, and ETFs without additional fees with E*TRADE’s commission-free trading.
- Manage your investments on the go with the Power E*TRADE mobile app for trading stocks, ETFs, options, and futures from anywhere.
Recap
E*TRADE effectively balances an intuitive user experience and modern design with a wide range of tools, trading features, and investment options, positioning itself as a leading brokerage. Whether users are sophisticated options traders or passive investors utilizing ETFs, E*TRADE caters to their needs.
However, individuals seeking direct cryptocurrency exposure or international exchange trading may need to explore alternative solutions. Ultimately, E*TRADE stands out as an exceptional and innovative investment platform that caters to the diverse needs of all investors.
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