E*TRADE Review 2024: Pros, Cons and How It Compares

Where E*TRADE shines

An advanced platform and app: The E*TRADE Web platform and the mobile app offer real-time quotes and market commentary, stock and exchange-traded fund screeners and a good deal of account management. More active traders can turn to the Power E*TRADE platform and app to get technical studies, drawing tools, customizable options chain views, trading ladders and other features for complex strategies.

Tradable securities: E*TRADE offers a wide range of investment choices, from stocks, bonds, ETFs and more than 6,000 no-transaction-fee mutual funds, to futures and advanced options strategies.

Educational resources and support: The educational resources and support options on offer from E*TRADE are some of the best. You can watch webinars on diversification and technical analyses as well as on more-complex topics like options trading. There are online investing courses that cover a host of topics, and a thematic investing section covering how to invest in companies that align with your values.

Where E*TRADE falls short

What type of investor should choose E*TRADE?

Intermediate traders: Intermediate traders will benefit from lots of educational materials and excellent trading platforms.

Active traders: Active traders will love the research and charting tools E*TRADE offers.

Options traders: Options traders with 30 trades or more per quarter get a discount ($0.50 instead of $0.65 per trade).

What the Nerds think 🤓

E*TRADE at a glance

How to sign up for an E*TRADE account

Opening an account at E*TRADE can be done completely online, and the broker says the process takes just 10 minutes (though we found it takes closer to 20). Investors who don't want to complete the application online can also call E*TRADE directly or mail in an application.

You'll select an account type — taxable or retirement, such as an IRA — and fill out some personal information, including your name, contact information and select financial details. Once the account is approved, you can fund it by transferring money from your existing investment or bank account. E*TRADE says the transfer process can take up to six days.

Keep in mind that depositing money into your account does not mean you're invested; once your account is funded, you'll need to select investments.

What to know about E*TRADE's fees

With E*TRADE you can trade stocks, options and ETFs commission-free. You'll still pay a fee to trade certain securities, including futures, as well as a per-contract fee of $0.65. for options trading. E*TRADE offers a discounted options contract fee of $0.50 for active traders (defined as those who trade 30 or more times per quarter).

E*TRADE charges no annual or inactivity fee. There is a $75 fee to fully or partially transfer assets out of your account.

E*TRADE’s analysts regularly update a list of highlighted mutual funds called the All-Star Funds Report with the top no-load funds and ETFs offered.

E*TRADE's trading platforms and apps

E*TRADE has two trading platforms — E*TRADE Web and Power E*TRADE. Both are free and available to all customers, with no trade activity or balance minimums.

E*TRADE Web offers free streaming market data, free real-time quotes, live market commentary, analyst research stock screeners and more. From the dashboard, you can track your accounts, create watch lists, view market data and make trades, including complex options strategies.

And for truly active traders, there's Power E*TRADE. The web platform offers real-time data, more than 100 technical studies, streamlined trade tickets, customizable options chain views and trading ladders.

The Power E*TRADE app offers many capabilities on the go: Traders can access the customizable options chain, a selection of popular technical studies, charts, streaming quotes and news. The app can be used for trading complex strategies, including four-legged option spreads, and futures traders can enter futures orders directly from the futures ladder.

E*TRADE has two free mobile apps, available for iOS and Android. The E*TRADE mobile app allows you to easily manage your account, place trades and get real-time quotes and news, including Bloomberg TV. It offers advanced mobile features like stock and ETF screeners, as well as multi-leg options trades. The E*TRADE app is available for Apple Watch as well.

E*TRADE's investment selection

E*TRADE allows investors to trade stocks, mutual funds, ETFs, options and futures. Its bond offerings include U.S. Treasurys, U.S. Treasury Auctions, Agencies, Municipals, Corporates and Brokered CDs.

The company does not offer forex trading or cryptocurrency. It also does not offer fractional shares of stocks unless you're buying them as part of E*TRADE's automated investing program.

Fractional shares have become common in the industry; they let investors purchase stock based on a dollar amount they select rather than the price of a whole share. This may be particularly advantageous for investors who are working with limited money, but want to build a highly diversified portfolio.

» Check out the best brokers for fractional shares

E*TRADE offers its customers the ability to buy into IPOs, and it does offer over-the-counter trading, though at a higher price than some competitors. Commissions on OTC trades start at $6.95 and go down to $4.95 for frequent traders.

Other key E*TRADE features

Research and data

E*TRADE's analytical tools are user-friendly for both retirement investors and active traders, and they're available free of charge. E*TRADE's lineup of research offerings include Moody’s, Morgan Stanley, MarketEdge, Morningstar and more.

Execution quality

E*TRADE says its execution quality is 96.18% for S&P 500 stocks and 95.88% for equities outside of the S&P 500.

Users should also note that E*TRADE accepts payment for order flow, which can potentially incentivize brokers to route orders to market makers based on how much they'll make — rather than the best price for the investor. But many other online brokers do this as well.

IRA account

E*TRADE offers both Roth and traditional IRAs, which are tax-advantaged retirement accounts. Experts typically recommend investing for retirement in a tax-advantaged account, which will allow you to get a tax deduction on your contributions or take money out in retirement without paying taxes. You can have an IRA in addition to other investment accounts, like a brokerage account.

Good to know about E*TRADE

Low interest rate on uninvested cash

Don't count on getting much of a return on the cash that accumulates or remains uninvested in your brokerage account. Interest rates range from 0.01% to 0.15% — well below the rates offered by high-ranking competitors.

Is E*TRADE safe?

E*TRADE is FDIC-insured, meaning bank accounts are insured to up to $250,000 per depositer and Premium Savings Accounts are insured up to $500,000 per depositer. E*TRADE accounts are also protected by the SIPC, which covers investment accounts up to $500,000 ($250,000 for cash only). SIPC insurance does not cover investment losses.

Is E*TRADE right for you?

E*TRADE’s investing tools, educational resources, large selection of no-transaction-fee mutual funds and innovative trading technology will suit all types of investors. Active traders will love the $0 commissions, and less-experienced investors will easily get up to speed with the company's deep educational resources.