> > E*TRADE Review 2024: Commission-Free Trades with A Powerful Platform

E*TRADE Review 2024: Commission-Free Trades with A Powerful Platform

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If you’re looking to invest while keeping your expenses at an absolute minimum, you need a commission-free brokerage to get you started.

While there are dozens of different brokerage services and trading platforms out there,  one stands out among the rest in terms of commission-free trades: E*TRADE.

Having pioneered the concept of hassle-free trading, E*TRADE is all about making investing as simple and accessible as possible. However, is the company the right brokerage for your investing style?

In this E*TRADE review, I’ll break down everything you need to know about the company’s direct investing features before you start trading. I’ll clue you into the brokerage’s various advantages and disadvantages so you can determine if it’s the best platform for all your investing needs.

E*TRADE

Overall Rating 4.5

The Modest Wallet Overall Rating (Our Rating Methodology)

Bottom Line: E*TRADE is an online brokerage offering zero-commission trades on stocks and ETFs. The broker offers an array of features worth checking out and low fees on almost all bonds and options transactions. E*TRADE also comes with powerful and sophisticated trading platforms.

Account minimum

4.5

Fees and trading costs

4.5

Investment selection

4.5

Accounts supported

4.5

Features and tools

4.5

Ease of use

4.0

Trading platform

4.5

Security

4.5

Customer support

4.5

Best for:

    Free trading
  • Active traders
  • Mobile trading

Pros:

  • Large investment selection
  • Powerful trading platforms
  • Excellent research & education tools

Cons:

  • Fairly high margin rates
  • No crypto investing available

What Is E*TRADE?

E*TRADE is an online brokerage based in the United States. The company got its start in Silicon Valley back in 1982 when William Porter and Bernard Newcomb decided to create the first-ever fully-online brokerage service.

Since its beginnings, E*TRADE has continued their pioneering mindset, creating an investor-friendly platform that anyone can use. The company was acquired by Morgan Stanley in October of 2020, but the investment bank plans to continue using the E*TRADE name.

While the company does technically have 30 brick-and-mortar branches, the vast majority of their work is online. Using their website and mobile apps, individual investors can buy and sell stocks, ETFs, options, bonds, and other securities on US stock exchanges with ease.

What sets E*TRADE apart from the pack, however, is that they have $0 commissions on nearly all online stock and ETF trades, as well as low fees on almost all bond and options transactions. They also have some of the most sophisticated trading platforms out there, which makes E*TRADE a solid choice for active investors of all experience levels.

ETRADE Review
Source: E*TRADE

>> Read Also: 12 Best Online Brokers for Stock Trading


How Does E*TRADE Work?

As an online brokerage, E*TRADE works similarly to other trading platforms, such as Charles Schwab and Robinhood. Accounts with the company are available to US citizens and residents, who can use the platform to buy and sell securities on US markets.

Account Minimum

The minimum deposit to open a self-directed trading account with E*TRADE is $0 at the moment. Meanwhile, customers can open an individual retirement account (IRA) with as little as $500 if they wish to access the Core Portfolio service, which is the name of E*TRADE’s robo-advisor.

Investing Account Types

With E*TRADE, you have a few different account types to choose from. Each of these account types is designed to meet a specific financial goal and some even offer tax breaks depending on your financial situation. Here are some of the many accounts you can open with the company:

  • Individual brokerage: Your standard investing account, individual brokerage accounts allow you to buy and sell securities without any annual contribution limits.
  • Joint brokerage: Essentially the same thing as an individual brokerage account, joint accounts let you share your account’s funds and responsibilities with another person, such as your spouse or partner.
  • Traditional IRA: A tax-advantaged retirement fund available for US residents and citizens, traditional IRAs allow you to trade securities while also getting a tax break on your contributions.
  • Roth IRA: Similar to a traditional IRA but with tax-free distributions at retirement, Roth IRAs are a great option for building tax-free wealth for later in life.
  • Rollover IRA: A solid choice for anyone who wants to maintain the tax-advantaged status of a 401(k) or 403(b) from a former employer, rollover IRAs are a solid choice if you’re looking to revitalize funds in an old retirement plan.
  • Coverdell: This is an account to save for your child’s education.
  • Custodial: This account is managed by a parent or other legally designated custodian until the child comes of legal age.
  • Small Business Retirement Account: These accounts include SIMPLE IRA, SEP IRA and Solo 401(k)s.

The majority of E*TRADE’s accounts are cash-based, so you can only buy and sell securities with funds that have already been credited to your account. However, most accounts at E*TRADE can also be upgraded to include margin trading depending on your personal goals and risk tolerance.

Account Types Offered By E*TRADE
Source: E*TRADE

>> Read Also: 12 Best Robo-Advisors: Automate Your Investments

Investment Selection

E*TRADE provides access to an ample portfolio of financial products going from traditional offerings like stocks and bonds to more sophisticated instruments such as futures and options.

  • Stocks
  • ETFs
  • Mutual Funds
  • Futures
  • Options
  • Bonds
  • CDs (Certificates of Deposit)

Opening an Account

Once you’ve decided that E*TRADE is the right brokerage for you, it’s time to open an account. The good news is that opening an account with the company is a pretty straightforward process. 

As we’ve mentioned, you need to be a US citizen or resident to be able to open an account with E*TRADE. Additionally, for the vast majority of E*TRADE accounts (with the exception of IRAs for minors, which require a custodial agreement), you also need to be 18 years or older to start investing.

If you meet the above-mentioned two requirements, you can create an account with E*TRADE online at their website using a digital application. Alternatively, you can call the company directly to open an account or send in a paper application.

Here’s a step-by-step guide that will walk you through this process:

  • Step 1: Visit the official E*TRADE website and click on the blue “Open an Account” button located in the upper right corner of the site.
  • Step 2: Choose which type of account you would like to open. The available options at this time include Brokerage, Retirement, and Savings and Checking Accounts.
  • Step 3: The system will prompt you to provide personal information including your full name, address, phone number, email, date of birth, and Social Security Number (SSN).
  • Step 4: E*TRADE will ask various questions concerning your employment status, financial situation, investment preferences, and risk tolerance to assess your profile. Some regulatory questions will also be asked so investors disclose if they are officers of a specific company or government officials. This is all mandated by the government.
  • Step 5: Users must agree to the platform’s terms and conditions and provide a username and password for their account.
  • Step 6: At this point, users must link their bank account to the brokerage account so they can make their first deposit. E*TRADE also supports rollovers for retirement accounts, check deposits, and wire transfers.

E*TRADE Features

E*TRADE prides itself on being a feature-heavy brokerage, so it comes as no surprise that they offer a wide range of trading benefits for investors. These are some of the most important features you can expect with an E*TRADE account.

Minimum Investment$0
Stock & ETF Fees$0
Options Fees$0 per trade + $0.65/contract ($0.50/contract with 30+ trades per quarter)
Mutual Funds Fees$19.99
Inactivity Fee$0
Withdrawal Fee$0 with ACH transfers ($25 with wire transfers)
Investment TypesStocks, ETFs, Options, Mutual Funds, Futures, CDs, and Bonds
Account TypesIndividual Taxable, Joint, Traditional IRA, Roth IRA, Rollover IRA, SEP IRA, SIMPLE IRA, Solo 401(k), Coverdell, Custodial and Trust
PlatformWeb-based, Mobile (iOS / Android) and WatchOS
Account FundingBank transfer
Paper Tradingyes
SIPC Protectionyes
Banking Servicesyes
SupportBranch, Phone, Email and Live Chat

Stocks and ETFs

E*TRADE customers can use its platform to trade US-listed stocks and exchange-traded funds (ETFs) with zero costs by using any of its proprietary trading platforms. As a result of the company’s merger with Morgan Stanley, investors who open an account with this brokerage will get access to advanced research materials from the investment bank.

Aside from the usual NYSE and NASDAQ-listed stocks, E*TRADE also provides access to a selected number of over-the-counter (OTC) equity instruments such as penny stocks and ADRs of foreign stocks.

Meanwhile, E*TRADE also offers 24×5 ETF trading, meaning that customers are allowed to buy and sell certain securities even if the markets are closed. Some of the most popular ETFs that are part of this program include SPY, QQQ, GLD, XLE, XLF, and XLQ.

Certain tools are also available to investors like ETF screeners and theme investing by using these instruments. In addition, customers can opt to set up recurring investments for the ETFs.

Bonds and CDs

With E*TRADE, customers can choose among the more than 50,000 different fixed-income instruments made available by this provider from more than 200 leading liquidity providers. The types of assets available within the platform include corporate, municipal, high-yield, and Treasury bonds.

Moreover, an ample portfolio of certificates of deposit (CDs) is available through a program called “Brokered CDs”, which allows customers to buy these instruments in the secondary market.

Some of the research tools made available by E*TRADE for bond trading include a screener that helps investors short-list the most attractive assets based on their yield, type of issuer, credit rating, and other similar ranking factors. In addition, advanced research materials for these securities are also available within the platform. 

Options

E*TRADE allows customers to trade options on stocks and futures by using their advanced options trading tools and systems. They offer fixed pricing for most transactions and the possibility to close positions by only paying a fraction of the usual commission and fee.

Options on futures can be traded throughout the whole day while traditional options can only be traded during market hours. It is also worth noting that E*TRADE has made available a handful of sophisticated tools for options traders including a risk/reward calculator, an earnings volatility analyzer, an options market scanner, and a strategy builder to perform and execute advanced trades.

Depending on customers’ needs and financial knowledge, they can apply to get access to different options trading strategies going from Level 1 (i.e. covered calls) to Level 4 (naked calls).

Futures

Futures can be traded via the E*TRADE platforms and operations can be carried out 24 hours a day, six days of the week. Dozens of contracts are available for investors to use for hedging or speculative purposes including futures on major stock indexes like the S&P 500 and the Nasdaq 100. These contracts are traded on some of the world’s largest futures exchanges including the CME, ICE US, and CFE.

In addition, traders can use futures to speculate on the future price movements of energy assets like oil and natural gas. 

Some of these contracts are settled in cash — e.g., indexes — while others can be taken physically as is the case of raw materials and energy assets.

Mutual Funds

E*TRADE offers access to more than 6,000 different funds and has made available a screening tool so investors can select the funds that suit them the best depending on the investment strategy they are adopting, their financial goals, risk tolerance, and other similar factors.

Some funds do not charge any load fees while others may demand some stricter requirements like minimum investments and penalties if shares are resold before a certain number of days. E*TRADE also lets users set up recurring investments for their favorite mutual funds and lets them use the services of its robo-advisor as long as they deposit a minimum of $500 into the account.

Initial Public Offerings (IPOs)

Companies are issuing new securities to raise capital every day. These new issues were typically available only to high-net-worth or institutional investors but platforms like E*TRADE have not made them accessible to retail investors as well.

IPOs are equity offerings from companies that are being listed in an exchange for the first time. These are volatile stocks whose price is set by underwriters and the issuing company. Broker-dealers allow customers to buy a certain number of shares before they hit the trading floor and usually demand a lock-up period. This is the minimum number of days during which the stock must be held before it can be sold. Otherwise, the investor may incur a penalty for selling before this period expires.

To place a bid on these new issues, investors must go through a separate procedure that includes filing a questionnaire that will assess their knowledge about the risks involved when investing in these types of assets along with signing up for a waitlist until the instrument becomes available.

Customers can stay up to date with the latest offerings by visiting the New Issue Center created by E*TRADE or subscribing to receive alerts on upcoming issuances.

IRA and Retirement Accounts

Depending on your financial goals, you can open several different retirement account options with E*TRADE. In addition to the standard traditional, Roth, and rollover IRAs, E*TRADE also offers a beneficiary IRA for inherited retirement assets and an IRA for minors.

The company also offers the E*TRADE Complete IRA for people over the age of 59.5 who want to convert their IRA to a cash-based checking account.

How E*TRADE Works?
Source: E*TRADE

>> Read Also: Public.com Review: Making The Stock Market Social

Core Portfolios and Managed Portfolios

For investors who take a more hands-off approach to their trading, E*TRADE offers core portfolios and managed portfolios. Both options are quite similar as they provide you with a professional that oversees your portfolio.

With core portfolios, a financial expert will build your account portfolio based on your goals. Then, the portfolio will get monitored and rebalanced using a combination of active and automated management for an annual fee. 

Additionally, there are also many other managed portfolios with E*TRADE that have higher investment minimums ($25,000 to $250,000) and larger annual fees. But, these managed portfolios offer more personalized account management and financial advising, which makes them ideal for hands-off investors.

Margin Trading

Trading on a margin allows you to buy and sell securities by using your current assets as leverage. Essentially, you borrow money from your brokerage, using your assets as collateral.

Since margin trading involves extra risk, it’s best for more experienced investors. Nevertheless, E*TRADE offers margin trading on most of their accounts, though their margin rates of 8.95% for accounts with less than $10,000 and 5.45% for accounts with more than $1,000,000 are fairly pricey.

Education and Research Tools

E*TRADE offers its investors a slew of different educational and research-based tools to help them make informed decisions with their money. Although there is a fee to use the company’s managed brokerage accounts, their prebuilt portfolios and online resources are free and available to all investors.

While the brokerage’s research tools aren’t as robust as what you’d get from, say Zacks Trade, they’re suitable for the majority of investors.

How to Trade on Margin with E*TRADE
Source: E*TRADE

>> Read Also: 7 Best Micro-Investing App


E*TRADE Trading Platform

E*TRADE is known for being a powerful provider of advanced trading platforms for sophisticated market participants who engage in activities like options and futures trading or high-frequency traders (HFT).

Here’s a summary of each of the trading systems and tools this provider currently offers:

E*TRADE Web and Mobile App

E*TRADE web is the primary interface that regular users rely on to place trades, engage with the different products offered by this provider like its cash management solution, and set up different types of accounts including a robo-advisor-powered retirement account.

Through both the web interface and app, it is possible to buy and sell any of the different financial instruments that this provider makes available including stocks, ETFs, futures, options, and bonds. 

A basic charting tool is accessible within the app along with research materials, educational videos, a variety of screeners, and market news and commentary from third-party media outlets such as TipRanks and Thompson Reuters.

Online reviews from the Apple App Store have rated the app with 4.6 out of 5.0 stars upon receiving over 148,000 reviews. Meanwhile, Android users appear to be a bit less satisfied with the interface as the rating goes down to 3.8 stars on the Google Play Store.

Power E*TRADE Web and Mobile App

This is the web version of E*TRADE’s advanced trading interface. The platform incorporates various tools that let users perform technical analysis on all of the instruments made available by this provider including charting and drawing tools.

The platform also incorporates advanced options trading tools like a risk/reward modeling feature, earnings volatility analyzers that let traders check how stocks and options have reacted previously after financial releases, sophisticated order types, and market scanners that generate alerts such as high-volume options purchases and extreme price fluctuations.

There is a mobile version of this platform as well that is available for both Android and iOS devices. This app has received various awards from online stock platform reviewers. Among other things, it lets users trade with all of the instruments available within the E*TRADE ecosystem and provides access to advanced research materials and a news feed for these assets as well.

Some of the features that are available on the web version like the charting and options analysis tools are available on the mobile app as well to the extent that the device’s screen makes it possible. 

The Power E*TRADE app has received positive comments from users of Apple devices as it displays a 4.5-star rating with over 8,000 reviews. Meanwhile, same as with the basic app, the performance of the Power E*TRADE Android version appears to be a bit poorer as ratings go down to 3.8 stars with over 1,000 reviews in the Google Play Store.


E*TRADE Customer Support

Users can reach E*TRADE support using a number of ways. The first of these tools is a library of frequently asked questions (FAQs) that can help users troubleshoot issues related to their account and the various products and services offered by E*TRADE.

In addition, a customer service representative can be reached via phone call with different numbers being provided for different cases like stock plans and brokerage services. It is also possible to send the company physical correspondence to the addresses provided by E*TRADE in this section of the website.

Other than that, a live chat feature is not available to non-customers and the same goes for sending an email as no address is provided to send queries. It is also worth noting that E*TRADE provides access to an extensive library of forms for various purposes that users may need to fill out and send physically for taxation and dividend distribution, among other actions.

E*TRADE’s account on Trustpilot has not been claimed by the company, meaning that the ratings provided by customers over there are not fully reliable. Currently, the account found for E*TRADE boasts a 1.3-star rating after 300 reviews resulting in a “Poor” rating.

Meanwhile, E*TRADE is not an accredited entity with the Better Business Bureau (BBB). According to this website’s records, E*TRADE has received over 500 complaints from users in the past 3 years while it has closed nearly 200 of them in the past 12 months.


E*TRADE Ease of Use

E*TRADE has created its trading platforms to cater to the needs of both beginner and seasoned investors and traders. The basic app is available for those who are just starting out in the investing world or who rely on passive portfolio management strategies that involve infrequently buying and selling securities.

Features such as automated recurring investments and the E*TRADE Core and Managed Portfolios solutions let investors sit back and rely on technology to place trades, build portfolios, and manage their investments.

Meanwhile, active traders can turn to the Power E*TRADE web and mobile app to engage in day and swing trading activities by using any of the tools made available by this provider to find opportunities in the stock, futures, and options markets along with performing advanced technical analysis on these securities via its charting tools and other similar features.

Both versions of the app are accessible from Android and iOS phones while other Apple devices including smartwatches can be integrated as well to receive price alerts and account updates. 

The best ratings have been extended by users to the iOS app while Android users have complained about wrong account and P&L balances being displayed and not being supported by all Android versions.


E*TRADE Security

E*TRADE takes very seriously the safety of customers’ data and the integrity of its systems as reflected by the company’s various initiatives to protect both. The company offers fraud protection, which is a program that covers any losses resulting from the unauthorized use of customers’ accounts. 

This protection is extended to both brokerage accounts whose balance is drained by bad actors or in cases where unauthorized transactions have been executed. Meanwhile, for lending products, the protection covers incidents where the outstanding balance has increased as a result of a breach.

E*TRADE claims that customer data is not sold to third parties or marketed for any purposes while the company uses top-notch encryption technology to protect data from being intercepted or viewed by hackers.

Users can also opt to use two-factor authentication (2FA) to further strengthen the security of their accounts. The firm’s 2FA program works through an app that provides a unique six-digit security code that users have to provide when they log into their accounts.

For those who prefer not to rely on an app, E*TRADE also offers the possibility of requesting a physical device that displays these codes and that can be synchronized with the account as well to add an extra layer of security. The physical token is available for free to customers with account balances exceeding $50,000.

Meanwhile, E*TRADE’s brokerage accounts are offered by Morgan Stanley — the investment bank that absorbed the firm in previous years. This financial institution has robust finances and it is a member of the Securities Investor Protection Corporation (SIPC), which provides coverage for up to $500,000 per account including $250,000 in cash in case the services provider goes out of business.

The firm’s banking products are also provided by a Morgan Stanley banking subsidiary. These products are FDIC-insured for up to $500,000 per account in case the institution experiences financial distress.


E*TRADE Fees

One of E*TRADE’s major selling points is its commission-free tradition. But, just how much does the company charge in fees outside of trading commissions? Here’s what you need to know:

Fees

E*TRADE markets itself as a low-fee brokerage firm and, for the most part, they stay true to this promise. With E*TRADE, there are no account opening fees, inactivity fees, or monthly service charges.

One of the very few times you’ll pay a fee to have a self-managed E*TRADE brokerage account is if you want to transfer your assets away to a different brokerage. Should you choose to transfer assets elsewhere, you’ll pay $75 for a complete transfer or $25 for a partial transfer.

That being said, E*TRADE’s managed portfolios, like their core portfolios and robo-advisor services, have their own fee schedules.

Like with any other brokerage, you can expect to pay extra fees for things like wire transfers, paper statements, checkbook orders, and stock certificate requests. However, these fees are common among all financial institutions and can’t generally be avoided by most individual investors.

Trading Commissions

Whether you’re an active trader or someone who takes a more passive approach to investing, keeping fees at a minimum is essential. This is what you can expect when it comes to trading commissions on E*TRADE:

Stocks, Options, and ETFs

The vast majority of stocks, ETFs, and options trades on E*TRADE are commission-free when bought and sold on an exchange. The primary exceptions to this rule are broker-assisted trades, which cost $25 each, and over-the-counter stocks which have a commission of between $4.95 and $6.95 each.

Additionally, the company charges options contract fees, which are between $0.50 and $0.65 each, depending on your quarterly trading volume.

Mutual Funds and Bonds

Most bonds on E*TRADE can be bought and sold for $0 in commission, except online secondary trades, which are $1 per bond. The company also charges an additional $20 commission for broker-assisted trades on bonds.

As far as mutual funds go, there are no commission fees on no-load, no-transaction-fee funds.

E*TRADE Review
Source: E*TRADE

See Also: Zacks Trade Review: An Online Broker for Active Traders

Margins Rates

If you’re interested in margins trading, it’s important to know what rate you’ll pay during your trades. With E*TRADE, you can expect to pay between 12.20% and 14.20% margin rates depending on your debit balance.


E*TRADE Pros Explained

  • Large list of different account options
  • No commission fees on stocks, ETFs, mutual funds, and options
  • 24/7 phone and live chat support
  • All investors get access to two great platforms
  • No minimum deposits for most self-managed accounts
  • Free access to prebuilt portfolios for guidance
  • Ability to set up automated investment management
  • Mobile app available for on-the-go trades
  • High-quality security and account protection

E*TRADE Cons Explained

  • Margin rates are among the highest in the industry
  • Limited brick-and-mortar locations
  • Contract fees for options are higher for less frequent traders
  • No access to crypto trading
E*TRADE Managed Portfolios
Source: E*TRADE

>> Read Also: 12 Best Investment Apps: For Beginners & Pros


E*TRADE Alternatives

Not sure that E*TRADE is the platform for you? Here are two other alternatives to consider before you open an account.

E*TRADE vs. Robinhood

Robinhood is a web and mobile-based brokerage that prides itself on its commission-free trades. Robinhood doesn’t offer mutual funds, bonds, and other instruments offered by E*TRADE, but it does offer cryptocurrency trading.

Robinhoon’s stock and ETF trades are completely commission-free and can be completed on their intuitive interface. Plus, with no minimum deposits and the ability to buy and sell both options and crypto, Robinhood is ideal for investors who want access to low-cost trading tools and securities that you can’t get on many other platforms.

To learn more about Robinhood, check out our full Robinhood review.

E*TRADE vs. TD Ameritrade

One of the largest brokerages in the United States, TD Ameritrade (now part of Charles Schwab) is a beginner-friendly trading platform that makes it easy to buy and sell securities from anywhere. Like E*TRADE, TD Ameritrade has done away with commissions on stock, ETF, and per-leg options trades.

In addition to having multiple platforms for investors to choose from, including thinkorswim, one of the biggest benefits of TD Ameritrade is their extensive educational resources. Moreover, now that the company is part of Charles Schwab, investors can get access to Schwab’s massive collection of investment products, including more than 13,000 mutual funds, forex trades, and penny stocks.

Ultimately, while E*TRADE and TD Ameritrade are quite similar, TD Ameritrade is ideal for folks who want more educational tools and access to a wider range of investment products.

Read our full TD Ameritrade review to learn more.

E*TRADERobinhoodTD Ameritrade
Our Rating

4.5

3.6

4.9

Fees$0 commissions for stocks, ETFs, mutual funds, and options trading (+$0.65 per contract)$0 commissions for stocks, ETFs, crypto, and options trading$0 commissions for stocks, ETFs, and options trading (+$0.65 per contract)
Account Minimum$0$0$0
PromotionNoneGet a free stockNone
HighlightZero commission trades on mutual fundsBeginner active tradersAdvanced trading platfrom
Best ForBeginner to intermediate investorsBeginner investorsIntermediate to advanced investors

Who Is E*TRADE Best?

E*TRADE is your one-stop shop for active and passive traders who want broad access to the US market without exorbitant fees. With the ability to buy and sell stocks, ETFs, mutual funds, and other securities online or on a mobile app, E*TRADE is perfect for people who like hassle-free investing that doesn’t cost a fortune.

Nevertheless, their high margin rates and lack of access to crypto markets means that very experienced investors may find themselves limited by the brokerage. But, for the majority of traders who want a low-cost way to buy and sell stocks, ETFs, and mutual funds, E*TRADE is a solid choice.


E*TRADE FAQ

We’ve found the most frequently asked questions with regard to E*TRADE, here are our answers.

Is E*TRADE Legitimate?

E*TRADE is a legitimate online brokerage that’s been in business since 1982. The company is a member of both FINRA and SIPCA, which are considered the gold standards in terms of market, investor, and securities protection.

Additionally, the company’s banking branch is a member of the FDIC, which protects non-securities assets held in non-brokerage accounts.

How Much Does It Cost to Use E*TRADE?

Most E*TRADE accounts are free to open and maintain. Except for a few managed portfolio accounts, E*TRADE has no account minimums or annual fees.

The majority of stock, ETF, bond, and mutual fund trades on the platform incur no commission fee. However, the platform does have some trading fees for processing certain types of securities and transactions.

Is E*TRADE Safe?

E*TRADE is a reputable online brokerage service with a track record of reliability. The company uses many different security features, such as encryption, two-factor authentication, and fraud protection to help shield your account from identity theft and cybercrime.

Nevertheless, trading securities is an inherently risky pursuit and it is possible to lose money in your brokerage account based on current market conditions.

In A Nutshell

  • Account Minimum: $0
  • Fees: Zero-commission stock, ETF, mutual funds, and per-leg options trading (+$0.65 per contract)
  • Promotion: None
E*TRADE

on E*TRADE’s website


Final Thoughts

If commission-free investing is your goal, E*TRADE is a sure bet. While they don’t lead the industry in more advanced investment tools, such as margin trading and access to international markets, E*TRADE’s low fees, accessible platform interfaces, and wide range of account options make it an excellent choice for the vast majority of investors.

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