eTrade is one of the best online brokers. As one of the first online brokerages in the United States, eTrade understands what it takes to succeed as an investor in the market. With its low trade fees, two excellent mobile apps, and the Power E*TRADE platform, this company provides everything for both beginners and experienced investors.
Summary
- e-Trade is a safe online broker, regulated by top-tier regulators. It is best for stock and options trading.
- The company offers an impressive variety of investment choices for both active traders and retirement investors, including advanced options strategies and over 4,500 mutual funds with no transaction fees.
- e-Trade’s web platform offers free streaming market data, free real-time quotes, live market commentary, analyst research stock screeners, and much more.
- The educational resources are great for beginner investors. They provide a wide range of support on various topics such as options trading and strategy building.
- The Power e-Trade platform is ideal for active investors and traders. Both web and mobile app platforms offer an incredible range of features for derivatives analysis and trading including 30 charting tools.
| e-Trade | |
| Headquarters: | Arlington, Virginia, United States |
| Year Founded: | 1982 |
| Demo Account: | Yes |
| Regulated by: | Securities and Exchange
Commission (SEC) Financial Industry Regulatory Authority (FINRA) |
| Minimum deposit: | $0.00 |
| Deposit Methods: | Wire Transfer, Check Deposit, Account Transfer |
| Withdrawal Fee: | $0.00 |
| Trading Platform: | E-TRADE Web, Power E-Trade |
| Mobile App: | eTrade mobile and Power e-Trade mobile available on iOS and Android. |
| Spread: | Options debit spreads |
| Minimum Trade: | $0.00 |
Pros and Cons
e-Trade offers two extremely versatile mobile apps that are both user-friendly and suited to different trading styles. The company offers access to extensive educational research for beginners looking to start investing along with extremely responsive 24/7 customer service. eTrade charges exceptionally low trading fees, including free stock, ETF trading, and options. Another impressive feature to note, it that ETRADE’s paper trading replicates the entire Power ETrade platform.
On the downside, the company’s website can be tricky to navigate compared to its mobile apps. Forex trading is not available as e-Trade only covers US markets and less frequent traders will face higher fees for per-contract options commissions.
| PROS | CONS |
|---|---|
| Two excellent
user-friendly mobile apps Extensive research tools Low trading fees Great customer service Paper trading replicates the entire Power e-Trade platform |
Difficult to navigate
website Per-contract options have higher fees for less frequent traders No forex, only US markets |
Regulation
E*TRADE is considered very safe as it has a long and proven track record, is listed on a stock exchange, discloses all of its financial records, and has a background in banking. E*TRADE is regulated by top-tier US regulators like the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).
Trading Platform
ETRADE offers its standard platform along with a more impressive and advanced Power E*TRADE platform which is aimed at different trading styles. A downside is that we found the standard ETRADE website design to be clumsy and difficult to navigate at times with two-level menus. Despite this, ETRADE has still built up a large following across their web platforms.
| Platforms Available: | iOS, Android, Web, Proprietary |
| Charts: | Yes (119) |
| Order Types: | Market, limit, stops, and conditional orders |
| Alerts: | Yes |
| Watch Lists: | Yes |
| News Ticker: | Yes |
| Search function: | Yes |
| Research: | Yes |
| Copy Trading: | Yes |
| Demo Account: | Yes |
The Power E-TRADE platform, is highly praised among options traders and is one of the best trading platforms in the industry.
The web design provides impressive ease of use and speed with an incredible range of tools. You can customizable your layout to fit your preferences and jump to positions directly from your notifications with a click. The platform’s charting engine is run by Chart IQ, a great third-party provider. This comes with great features including 114 technical indicators, around 30 drawing tools, and an incredible zoom function. It provides a great experience for trading futures. You can run multiple futures ladders simultaneously, managing positions is effortless, and orders are made and tracked visually.
All platforms have a trade ticket that provides snapshot analysis with real-time data.
Power E*TRADE is a perfect platform for beginner investors to learn how to trade options. For example, the Snapshot Analysis tool translates Risk/Reward with smiley emojis, and important global events to look out for are always listed next to a profit and loss chart.
Both mobile app versions are user-friendly and allow for almost the exact same versatility as the web platforms.
Mobile App
e-Trade has one of the best mobile trading platforms we have seen on the market. Both the standard and more advanced Power ETRADE platforms have incredibly well-designed mobile app versions however, the Power ETRADE mobile app definitely takes the cake.
The standard ETRADE app is mainly aimed at beginner investors with its two-level menus and various screening tools, educational resources, and portfolio analysis. Placing an order on the standard ETRADE app is straightforward and a trade ticket is provided. Your positions can easily be monitored and the app offers analysis tools for you to measure your allocation of assets against three model portfolios.
The Power ETRADE app allows you to do almost the exact same versatility as the Power ETRADE web platform.
Suited for both active investors and traders, the app provides charting tools, price alerts, and a much wider set of trading-focused features. For the best options for active traders, check out our guide on the best day trading apps for beginners. Power eTrade allows you to customize your layout to your preferences. It allows for derivatives analysis and contains all the features inherited through the company’s acquired OptionsHouse technology.
Beginner-friendly and effortless to navigate, it's no surprise that E*TRADE’s mobile apps have built up such a big fan base.
Languages Available
E*TRADE’s excellent and highly responsive multilingual customer support is offered live in four languages: English, Spanish, Cantonese, and Mandarin. In addition, language line translation is available for customers in 140+ languages. E*TRADE stock plan pages are available in 18 languages.
Products and Markets Available
E*TRADE has a range of investments that will please both active traders and retirement investors. Their selection of choices includes futures and advanced options strategies, along with over 4,500 mutual funds with no transaction fees. This selection of mutual funds is rarely offered by competing brokers. Above this, mutual funds that aren’t featured on the no-transaction-fee list will cost $19.99 per transaction.
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All investment services offered including stocks, options, bonds, and financial-planning are done via ETRADE Capital Management. Banking services are provided through ETRADE Bank, and futures trading is offered through E*TRADE Futures LLC.
E*TRADE’s platform features a mutual fund list that is regularly updated by analysts called the All-Star Funds Report. This contains the top funds and ETFs that are being offered.
The only notable feature that their platforms are lacking is international trading and forex trading. This is a surprising downside as this is rare among US-based brokerages.
Fees And Commissions
E*TRADE offers a decent range of cost-cutting perks that beginners should look for in a broker. The company offers no commission fee, as well as no transaction fees for regular stock and ETF trades. There is no minimum deposit, along with no withdrawal fees or deposit fees.
Options will cost up to $0.65 per contract. Customers who make 30 options trades or more per quarter get a $0.50 discounted rate per contract. The company's option fees have fallen to be one of the lowest for active traders who qualify for lower pricing.
4,500 mutual funds with no transaction fees. This selection of mutual funds is rarely offered by competing brokers. Mutual funds that aren’t featured on the no-transaction-fee list will cost $19.99 per transaction.
E*TRADE’s dividend reinvestment feature allows you to reinvest dividends on certain stocks with no commission costs. It allows you to reinvest dividends into partial shares of stocks.
Research
E*TRADE provides you with access to a range of research to expand on your investment knowledge and conduct in-depth market analysis. ETRADE’s platforms feature great in-house market commentary and analysis. In addition to five third-party research report options, ETRADE offers consensus ratings from multiple third-parties. This includes breakdowns through TipRanks from various analysts.
Charting on the web platform includes the Trefis price estimate, with a quick link to view Trefis's full analysis.
E*TRADE's in-house staff provide a range of content which includes the Daily Insights and Market Happenings series. In addition, Bloomberg TV is also available on the web platform.
However, in terms of design and ease of use, E*TRADE's screening and quote experiences could use some work. It also doesn’t quite match some of its competitors in terms of quality and depth of research, and there is no live broadcasting feature.
Education
E*TRADE’s website offers a Learning Center that contains helpful support resources on trading, investing-related articles, and guides to using online trading platforms. It offers investor education in a variety of formats and covers all relevant topics for both beginners and advanced investors.
Beginner investors start by checking out the Getting Started section and move on from there once they are more comfortable with investing concepts.
They host webinars on a variety of topics including options trading, technical analysis, and how to diversify a portfolio.
The education center is available for free to everyone, even those who aren’t customers.
E*TRADE, in light of the ongoing pandemic, has published a Covid-19 resource center for its clients. Their educational resources have been updated to include support for understanding new laws in order for customers to optimize their decisions.
Account Opening
There are various account types available including brokerage, retirement, bank, and small business. There are no minimum deposits or withdrawal fees.
How to open an account:
- Visit the official website and click the “open an account” button
- Fill out either the brokerage or bank online application form
- Verify your account
- Either fund your account instantly online or mail in your direct deposit
By phone:
Call 800-ETRADE-1 (800-387-2331)
By mail:
- Download an application form and print it out
- Complete and sign the application
- Send the application with a payable check either to ETRADE Securities or ETRADE Bank
Customer Support
eTrade provides impressive customer service both online and in-person, with 30 branches staffed by financial consultants. The company offers an excellent 24/7 phone line with access to brokers, retirement specialists, financial consultants, trader consultants, and product specialists. Financial consultants are available in physical branches for face-to-face assistance.
There is an online 24/7 chatbox, where mobile users can access customer service.
Feedback can be submitted to E*TRADE by clicking the “Suggestions” link found in the customer service menu in the top navigation on each page of the website.
Conclusion
ETRADE is a safe financial broker regulated by many top-tier jurisdictions. ETRADE has long been one of the most popular online brokers. The company's strong trading platforms will appeal to active traders, while beginner investors benefit from a large library of educational resources.
Outside of its $0 commissions fee, e-Trade excels with its excellent educational resources, investment and strategy-building tools, and large mutual fund selection.
Their investing tools, educational resources, large selection of no-transaction-fee mutual funds, and innovative trading technology appeals to investors of all kinds. The 0$ commissions is perfect for active traders, and the company's high-quality educational resources are well-suited for beginners.
The Power eTrade web and mobile app also offers a great experience for options analysis, trading, and analytical power.
ETRADE is a trusted and reliable broker that sets the bar high for its competitors. With its mobile and options trade offerings, ETRADE offers a well-rounded brokerage service that suits everyone. For active day traders looking for a robust CFD trading platform, we recommend reading our Plus500 review.
