E*TRADE Rating: 
Overview of E*Trade
With its recent acquisition by Morgan Stanley, E*Trade has made some notable changes—some beneficial and others not as much. Here’s a look at what this well-known brokerage offers:
E*Trade Pros
Excellent software: Multiple trading platforms with advanced features.
Competitive pricing: Several asset types available without commissions.
Multiple tax options: Offers accounts with tax deferral.
E*Trade Cons
Customer support: Some service channels reduced since the Morgan Stanley acquisition.
Limited investment options: Some types of investments are not available.
No investment advisory accounts: Full-service advisory accounts have been discontinued.
E*Trade Investment Options
E*Trade offers both robo and self-directed accounts. Full-service investment advisory accounts are no longer offered, though Morgan Stanley provides this service. The robo option includes a selection of bond and stock ETFs with low fees.
Self-directed accounts have a broader range of options, including all American-listed ETFs, stocks, options, fixed-income products, futures, mutual funds, and closed-end funds. However, cryptocurrencies and foreign stocks are unavailable. Over-the-counter (OTC) stocks are tradeable.
E*Trade supports several account types with different tax structures, including retirement accounts, custodial accounts, and Coverdell accounts, along with standard individual and joint accounts.
E*Trade Commissions and Minimums
There is no cost to open a robo or self-directed account. Robo accounts have a $500 minimum and a 0.30% annual management fee. Self-directed accounts have no minimums or recurring fees.
Equity commissions are $0 for online trades, with a $6.95 fee for OTC stocks and a $25 surcharge for phone orders. Options and futures have per-contract fees of $0.65 and $1.50, respectively, with a discount for active options traders.
E*Trade no longer charges transaction fees for mutual funds, and there is no short-term redemption fee, so funds can be traded freely, though fund-specific fees may still apply.
Customer Service
A recent change at E*Trade is the removal of the human-chat feature, replaced with a robo-chat tool. While the robo-chat answers questions well, it doesn’t match the human chat’s effectiveness. Occasionally, typing "human" in the chat box brings in a live agent.
Phone support is available 24/7, though wait times can vary. Shortest hold times are typically during weekday mornings.
E*Trade’s website includes many self-help features, including a document upload tool, which can replace mailing documents. Other online options include linking accounts, setting beneficiaries, handling wire requests, subscribing to data, and taking IRA distributions.
Unfortunately, E*Trade has closed all branch locations.
Computer Software
E*Trade’s website makes account management, investment research, and trading straightforward. Its screeners help users find stocks and funds, while charts and order tickets have useful tools, like trailing and stop-limit orders.
E*Trade’s Power platform, a browser-based platform, takes trading to a higher level with tools like customizable chart styles and option spreads with P/L diagrams showing breakeven and maximum potential gains or losses.
For the most advanced trading, E*Trade Pro is available as desktop software, packed with features for serious traders. The quick-entry trade ticket on Pro includes large buttons for long and short trades and advanced order types for conditional orders.
One minor downside: E*Trade Pro requires a minimum balance of $1,000 to access.
Mobile App
E*Trade offers two mobile apps: the main app and the Power app. The Power app, as its name suggests, is built for more advanced trading and is the only one that supports futures trading.
The Power app includes Buzz Scores, which analyze social sentiment on popular stocks by looking at social-media activity. It also has news articles, Level II quotes, time & sales data, a futures ladder, simulated trading, and mobile check deposit.
The main app provides mutual fund trading, which is not available in the Power app on mobile or desktop. It also has features like a watchlist, Bloomberg TV, market news with color-coded indicators, an economic calendar, and a security screener for stocks, ETFs, and mutual funds. Charts can be viewed in horizontal mode with helpful tools.
Margin
E*Trade offers margin trading for self-directed accounts. Upgrading a cash account to margin is easy on the website, which includes a margin calculator (also available on Pro).
Margin rates are competitive, ranging from 13.2% for balances below $10k to 11.2% for balances above $250k.
Cash Management
Beyond margin, E*Trade offers cash management services through Morgan Stanley Private Bank. Options include checking and savings accounts, plus a premium checking account called Max-Rate. These accounts have FDIC insurance and offer benefits like unlimited ATM fee refunds (Max-Rate account has a $15 monthly fee, waived with a $5,000 balance). Both checking accounts come with free bill pay and a debit card.
Another option is a line of credit, allowing clients to borrow against securities in an investment account.
Deposit accounts with Morgan Stanley link directly to E*Trade accounts for easy transfers.
Additional Services
Individual Retirement Accounts: E*Trade offers a variety of IRAs, including small business accounts and a minor’s IRA. However, it has some fees for IRAs, while
Robinhood offers no fees and a 1% match.
Extended Hours: E*Trade provides pre-market and after-hours trading from 7 am to 8 pm EST. Futures trade 24/6, and a few ETFs can be traded overnight.
IPO Access: Available under the ‘Trading’ tab on the website.
Stock-Lending Income Program: Clients with $200,000+ in cash accounts can earn extra income by lending out their shares (found under the ‘What We Offer’ tab).
Fractional-share Trading: Not available. Robinhood offers this service.
Dividend Reinvestment Plan: Available for accounts, with enrollment under the ‘Accounts’ tab.
Recurring Mutual Fund Purchases: Available for most mutual funds offered by E*Trade.
Recommendations
Long-Term Investors and Retirement Savers: E*Trade offers options like self-employed 401k plans and lifecycle mutual funds. However, it lacks annuities and financial-planning services, making
Charles Schwab a better option.
Beginners: E*Trade’s automated investing service is a solid starting point.
Mutual Funds: E*Trade has an effective mutual fund screener and pre-screened All-Star funds. However,
Firstrade offers over 11,000 mutual funds without fees.
Active Stock and ETF Trading: Both E*Trade Pro and Power are excellent for active traders.
Small Accounts: While E*Trade’s robo service requires $500, other firms have lower minimums. Webull requires only $100. Self-directed accounts at E*Trade have no minimums and no ongoing fees.
E*Trade Review Summary
While there are some downsides and recent changes, E*Trade is a strong choice, especially for active stock and options traders.
E*Trade Commissions
| Investments | Price |
|---|
| Stocks and ETFs | $0 |
| Stocks and ETFs broker assisted | add $25 |
| Options | $0.65 per contract (0-30 trades/quarter) or $0.50 (30+ trades/quarter) |
| Mutual funds | $0 |
| Futures contracts | $1.50 per contract, per side + fees |
| Fixed Income | markup or markdown and any transaction fee will be included in the price quoted |
| Bonds | $1 per bond (minimum $10, maximum $250) for online secondary market trades. Includes Agency bonds, Corporate bonds, Municipal bonds, Brokered CDs, Pass-thrus, CMOs, Asset Backed Securities. |
E*Trade Account Fees
| Fee | Amount |
|---|
| IRA Setup Fee | $0 |
| Annual IRA Fee | $0 |
| IRA Closing Fee | $50 |
| Full Account Transfer Out | $60 |
| Partial Account Transfer Out | $25 |
| Outgoing Wire Fees (Domestic) | $25 |
| Outgoing Wire Fees (International) | $25 |
Updated on 5/20/2025.