E*TRADE Day Trading and the PDT Rule
E*TRADE, owned by Morgan Stanley, is a low-cost broker that is popular with day traders. It has several trading platforms, advanced tools, and paper trading services. Its low fees and wide choice of securities make it a good option for traders.
Keep reading to see if E*TRADE fits your needs.
Key Takeaways
• E*TRADE, now part of Morgan Stanley, is a well-liked broker for day traders because it has low fees and offers many types of securities, including penny stocks, listed stocks and ETFs, ADRs, futures, and options.
• E*TRADE provides several trading platforms, advanced tools, and paper trading.
• E*TRADE’s platforms have advanced features like hotkey support, advanced charting, customizable layouts, price ladder with Level 2 data, and detailed order tickets.
• The Pattern Day Trader (PDT) rule at E*TRADE requires anyone making four or more day trades in five business days to keep at least $25,000 in their account. If the account balance can't meet this amount, a trading restriction may be placed.
Day Trading Fees at E*TRADE
E*TRADE’s day trading fees are fairly low. There are no commissions for listed stocks and ETFs, but some securities have fees. The costs depend on what you are trading.
Here are the main trading fees you should know:
• OTC (including Pink Sheets): $6.95 per trade (or $4.95 per trade for active investors)
• ADRs: From $0.005 to $0.05 depending on the security
• Options: $0.65 per contract (or $0.50 per contract for active traders)
• Futures: $1.50 per contract for each side (buy or sell)
Available Securities
Day traders at E*TRADE can pick from a wide range of securities, which is one reason why it is popular. Whether you want to trade penny stocks, listed stocks and ETFs, ADRs, futures, or options, E*TRADE offers many choices.
E*TRADE’s Tools and Features
Here are some of the main tools and features at E*TRADE for day traders.
Platform Choices
E*TRADE gives you several platforms to choose from. Each one is a bit different, and you can pick the one that best matches your trading style. You can trade on the website, on Power E*TRADE (a browser-based platform), or on the advanced E*TRADE Pro platform. As you move to the more advanced platforms, you get more control over your trades.
E*TRADE Pro has advanced features, like hotkey support, advanced charting with built-in technical studies, a layout you can customize, a price ladder with Level 2 data, and advanced order tickets that make placing trades easier.
There are also two mobile apps that work well for day trading. One is a companion for the website, and the other is for Power E*TRADE. The Power E*TRADE app has more features for active traders.
Execution Speed and Quality
E*TRADE offers fast and accurate order execution. The average time to complete a stock or ETF trade is 0.11 seconds, and trades are not made slower just to get better prices. Over 95% of trades are filled at the National Best Bid or Offer (NBBO) or better.
Charting
For charting, E*TRADE Pro offers the most in-depth experience, but Power E*TRADE also has many features useful for day trading. Both platforms have a large selection of built-in technical studies and different timeframes. Note, though, that you can’t use custom indicators on either platform.
Paper Trading
Many day traders want to test trading software or practice with back-testing. Simulated trading is important, and E*TRADE allows paper trading for stocks, ETFs, and options on all its platforms.
Watchlists
Customizable watchlists let you keep an eye on your favorite stocks and other securities. This helps you spot new opportunities and respond quickly.
Live News Feeds
Live news from Bloomberg TV is available directly on E*TRADE’s platforms, helping day traders stay on top of market news. Real-time updates can have a big effect on trading decisions.
Margin Rates and Requirements
To use margin for day trading, your account must have at least $2,000. You can still trade with less, but you won’t get extra buying power or be able to sell stocks short until you meet the margin requirement.
When using margin, each trade has a margin fee. The rate depends on your account size, how long you borrow the funds, and the base rate. Rates start at 2.50% above the base rate for small accounts and go as low as 0.50% above the base rate for accounts between $250,000 and $500,000.
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Debit Balance
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Margin Interest Rates
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$250,000 - $499,999.99
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10.7%
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$100,000 - $249,999.99
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11.2%
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$50,000 - $99,999.99
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11.7%
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$25,000 - $49,999.99
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12.2%
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$10,000 - $24,999.99
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12.45%
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$0 - $9,999.99
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12.7%
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E*TRADE Pattern Day Trader (PDT) Limits
E*TRADE’s day trading rules are like most brokers. The most important rule is the Pattern Day Trader (PDT) rule.
The PDT rule says if you make four or more day trades in five business days, you’re a pattern day trader. You must keep at least $25,000 in your account. If your balance falls below this, you’ll get a margin call. If you don’t bring your balance back up, your account could be restricted from buying securities for 90 days.
Alternative For Traders
For active traders, another good option for day trading is Moomoo.
It has some advantages over E*TRADE: crypto trading, lower margin rates,
virtual trading, and simpler trading tools.
Open Moomoo Account
Open Moomoo Account
Updated on 7/30/2025.
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