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ETRADE is one of the world’s largest online brokers, known for its innovative and user-friendly trading platforms catering to both beginner and advanced traders. With $0 commissions for online stock, ETF, and options trades, ETRADE offers a wide range of investment options including stocks, ETFs, mutual funds, bonds, futures, and more.
ETRADE provides two main platforms – the standard web platform and the advanced Power ETRADE – along with corresponding mobile apps for on-the-go trading. It offers extensive research tools, educational resources, investment advisory services, and trading support to assist investors. E*TRADE also provides various account types like IRAs, checking, and savings accounts.
E*TRADE’s Trading Platforms and Mobile Apps
ETRADE offers two main trading platforms – ETRADE Web and Power E*TRADE, both available for free to all customers. These platforms cater to traders of varying skill levels, providing advanced features and tools for both beginners and active traders.
Web Platforms
- E*TRADE Web: Designed for beginner and passive investors, this web-based platform offers a user-friendly interface and basic trading capabilities.
- Power E*TRADE: This advanced web-based platform is highly regarded for its comprehensive charting, options, and futures trading tools. It provides:
- Over 100 technical indicators
- 37 drawing tools
- Advanced options trading tools that visualize risk/reward probabilities
- Futures trading tools for direct order entry and modification
Mobile Apps
ETRADE’s mobile apps, including ETRADE Mobile and Power E*TRADE Mobile, are considered industry-best for mobile investing and trading. Both apps mirror the functionality of their respective web-based platforms.
| App | Description |
|---|---|
| E*TRADE Mobile | More beginner-friendly, with customizable watch lists and streaming quotes. |
| Power E*TRADE Mobile | Designed for advanced traders, offering strong charting capabilities and advanced trading tools. |
Both mobile apps offer robust features like customizable watch lists, streaming quotes, and strong charting capabilities. E*TRADE’s systems and platforms are designed to provide reliable account access and trading execution, though response times may vary due to factors like market conditions.
Investment Options and Research Tools
Investment Choices
ETRADE offers a diverse range of investment options to cater to various investor needs and preferences. These include stocks, options, mutual funds, exchange-traded funds (ETFs), futures, bonds, certificates of deposit (CDs), prebuilt portfolios, and initial public offerings (IPOs)/new issues. With over 4,000 no-transaction-fee mutual funds available, ETRADE provides investors with a wide selection of funds to choose from.
Research Tools and Resources
- Stock Research: E*TRADE provides access to stock research from reputable providers like Morgan Stanley, Argus, Refinitiv, and Market Edge. These resources enable investors to assess stocks, compare companies, and discover potential investment ideas.
- Educational Content: E*TRADE offers extensive educational resources, including webinars, online courses, and research reports, to assist investors of all experience levels. These resources cover a broad range of topics, such as investing basics, advanced trading strategies, retirement planning, tax planning, market news, and thematic investing.
- Trading Tools: E*TRADE’s platforms are equipped with various trading tools, including stock, ETF, mutual fund, options, and fixed income screeners, as well as charting, research, and idea generation tools. These tools support a variety of order types, such as contingent, bracketed, and one-triggers-the-other orders.
- Portfolio Management: E*TRADE offers portfolio management services through its Prebuilt Portfolios and Core Portfolios. These services provide pre-built and automated portfolio options, along with strong educational content and a comprehensive range of tools and resources for investors of all experience levels.
| Investment Option | Description |
|---|---|
| Stocks | Trade stocks with $0 commission |
| Options | $0.65 per contract fee (discounted to $0.50 for active traders) |
| Mutual Funds | Over 4,000 no-transaction-fee mutual funds, $19.99 per trade for others |
| ETFs | Commission-free trading for ETFs |
| Futures | Futures trading tools for direct order entry and modification |
| Bonds and CDs | Access to bonds and certificates of deposit |
| Prebuilt Portfolios | Automated portfolio options |
| IPOs/New Issues | Ability to participate in initial public offerings and new issues |
It’s important to note that options trading is complex and carries a high degree of risk, and may not be suitable for all investors. E*TRADE and its affiliates do not provide any opinion on the suitability or profitability of any investment vehicle or strategy. Investors should consider their individual goals, timelines, and risk tolerance when selecting investments, and consult licensed financial and tax professionals to determine investment suitability.
Fees and Pricing Structure
Trading Commissions
E*TRADE offers $0 commissions for online stock, ETF, and options trades. However, there is a $0.65 per contract fee for options trades, with a discounted rate of $0.50 per contract for active traders who make 30 or more trades per quarter.
Other Trading Fees
- Bond Trading: E*TRADE charges $1 per bond for online secondary trades, with a minimum of $10 and a maximum of $250.
- Futures Trading: The fees for futures trading are $1.50 per contract, per side, plus any applicable fees. Specifically, the fees are $1.50 per contract for stock index futures and $2.50 per contract for cryptocurrency futures.
Mutual Fund Fees
E*TRADE offers no-load, no-transaction-fee mutual funds, while load funds have fees as stated in the prospectus.
Margin Rates
E*TRADE’s margin rates are volume-tiered, ranging from 12.20% to 14.20% depending on the debit balance tier, with a base rate of 11.70% as of July 27, 2023.
Account Fees
| Fee Type | Amount |
|---|---|
| Paper Statements | $2 |
| Returned Checks | $2 |
| Reorganizations | $2 |
| Bank Check Requests | $15 |
| Coverdraft Protection Transfers | $5 |
| Wire Transfers | $25 |
| Full Transfer Out | $75 |
| Minimum Balance Fees | $10 for Independent Checking and Money Market accounts, $15 for Max-Rate Checking accounts (waivable) |
Interest Rates
- Uninvested Cash: E*TRADE pays 0.01% interest on uninvested cash balances in accounts.
- Core Portfolios: E*TRADE’s Core Portfolios have a 0.30% flat annual advisory fee.
Promotions
E*TRADE offers a promotion of up to $1,000 for opening and funding a new brokerage account by May 31, 2024, with promo code PROMO24.
It’s important to note that options trading is complex and carries a high degree of risk, and may not be suitable for all investors. E*TRADE and its affiliates do not provide any opinion on the suitability or profitability of any investment vehicle or strategy. Investors should consider their individual goals, timelines, and risk tolerance when selecting investments, and consult licensed financial and tax professionals to determine investment suitability.
Safety and Regulation
Regulatory Oversight and Investor Protection
E*TRADE is a fully regulated broker, overseen by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) in the USA. Clients opening futures accounts are also regulated by the Commodity Futures Trading Commission (CFTC).
As a subsidiary of Morgan Stanley, a major financial services firm, E*TRADE’s operations and customer accounts are subject to regulatory oversight and compliance requirements. This provides additional oversight and regulatory compliance.
- Securities Investor Protection Corporation (SIPC)
E*TRADE is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). This protection covers customer accounts in the event of the firm’s insolvency.
- National Futures Association (NFA)
E*TRADE Futures LLC is a member of NFA, the self-regulatory organization for the U.S. futures industry.
- Federal Deposit Insurance Corporation (FDIC)
Morgan Stanley Private Bank, National Association, which provides banking services, is a member of FDIC, providing deposit insurance up to $250,000 per depositor.
Client Fund Segregation and Protection
Client fund segregation protects client money, ensuring it remains secure and accessible only to the client, even if E*TRADE runs into financial trouble. However, clients opening futures accounts are not covered by the SIPC investor protection scheme.
E*TRADE does not provide negative balance protection.
Account Security and Privacy
| Security Measure | Description |
|---|---|
| Encryption and Firewalls | E*TRADE uses encryption, firewalls, and dedicated fraud protection teams to help secure accounts. |
| Multi-Factor Authentication | They offer multi-factor authentication as an extra layer of security. |
| Complete Protection Guarantee | E*TRADE’s Complete Protection Guarantee means customers are not liable for unauthorized use of their account, and the company will cover any resulting losses. |
| Privacy Policy | E*TRADE will not sell customers’ personal information to third parties or marketers. |
Transparency and Disclosures
E*TRADE provides detailed account agreements and disclosures, including information on the Characteristics and Risks of Standardized Options, Futures Additional Risk Disclosure, and Fully Paid Lending Program Risk Disclosure Statement.
The company publishes its Statement of Financial Condition, Account Agreements and Disclosures, and other regulatory documents, demonstrating transparency around its financial standing and operational practices.
