Etrade is the most established online trading broker. This is partly the result of considerable marketing effort, but also because it promises a user-friendly platform, extensive resources, and competitive rates. This review of Etrade details every aspect of its offering, including product history, accounts, commissions, and product listings.

 

 

short history

Signing up before you start trading daily will help you understand how Etrade has evolved. The company started in 1982 when William A. Porter and Bernard A. Newcomb founded TradePlus in California with $15,000. Then, in 1991, Porter and Newcomb formed a new company, Etrade Securities. They started offering trading services through America Online and Compuserve. Earnings in 1994 reached nearly $11 million, a quantum leap from $800,000 in 1992.

 

 

After just two years, the company had 73,000 customers and was processing 8,000 transactions daily. It was $15 million, not to mention quarterly revenue. In June 1996, the company went public through an initial public offering (IPO).

In the early 2000s, it looked like Etrade was merging with TD Ameritrade. However, disagreements over pricing and governance rights prevented this deal from coming through. Instead, Etrade is selling former discount brokers Harrisdirect and Brown & Company was acquired.

As a result of numerous business transactions, E-Trade is now headquartered in New York and has other offices around the world. Their growth has also meant they can offer deals like:

  • Stocks
  • OTC Penny Stocks
  • ETFs
  • Gifts
  • Options
  • Receivables
  • Mutual Funds

Some people are not sure if Etrade is a market maker. The answer is that G1 Execution Services LLC was a market unit of ETrade Financial Corporation. However, the business was sold to Susquehanna International in 2013.

Minimum initial deposit

If you want to start trading daily with Etrade, one of the requirements is to pay a minimum account deposit of $500. There are alternatives that offer the lowest amount, but $500 is fairly industry standard.

Spreads and Commissions

User transaction reviews have been mostly positive in terms of brokerage fees. When you open an account, you can expect prices comparable to our main competitors of TD Ameritrade, Fidelity and Charles Schwab.

This means you might want to look elsewhere if you’re looking for deeply discounted fees. However, many argue that they pay more because they get more, including powerful trading tools and valuable extras.

Standard stock trades are $6.95 plus $.75 per contract. There are also bulk discounts. This means active traders can get rates as low as $4.95 + $0.50 if they make 30 or more trades per quarter.

Etrade also offers commission-free ETFs. It doesn’t offer the 296 free ETFs found on TD Ameritrade, but it still promises 225, putting it at #3 in the industry rankings.

Benefit

According to reviews and ratings, Etraders is content with leveraged options. When you open a margin account, you can borrow up to 50% of your qualifying equity to purchase products. Trading correctly on margin will help you take advantage of opportunities and improve your earnings.

You can also speculate on a variety of markets, from foreign stocks and gold to cryptocurrencies such as Ethereum, Ripple, and Bitcoin futures. However, you should check the futures margin requirements for your account type.

You should also keep margin calls in mind, and high interest rates can actually cause you to lose more than your original account balance. So you have to be careful and whether this type of trading is worthwhile depends on the individual trader.

Other trading fees

There is no inactivity fee for intraday traders. However, you will have to pay a transfer fee of $75. In fact, Daily Trading Broker Reviews have ensured that Etrade’s pricing structure is relatively transparent, ensuring users aren’t tripped over by hidden fees.

There is also good news regarding promotions and bonus offers. As for the account bonus, when you deposit $10,000, you benefit from 60 days of commission-free trading. Also, brokers sometimes run refer-a-friend schemes. Requirements vary, so go to the website and see how it works.

Trading platforms

When you open and log in to your Etrade account, you have a choice of three trading platforms. While all can be used to trade a wide range of markets and instruments, brokerage review forums have highlighted the specific strengths and limitations of each option.

etrade web

Web platform customer reviews are fairly positive. Access streaming market data, free real-time quotes and market analysis. The user interface is very smooth and easy to navigate. For example, you can track your account, create a watchlist, and execute trades from your dashboard.

 

 

Etrade also provides easy-to-follow user guides and tutorials so you can get the most out of your web system. However, our tool review highlighted that the web platform may be best suited for beginners who do not need advanced trading tools.

 

 

Option House

Etrade bought OptionsHouse trading platform founded in 2016. Platform reviews and options forums suggest that this is a better choice for those who want to trade actively rather than take a long-term position. Get rich real-time data, tickers and dozens of charting tools. Actually, you get:

  • File notes with each transaction
  • Many optional levels
  • 100 Technology Research
  • Stop quotes
  • Option chain screen with 30 customizable columns
  • Risk/reward broken down into details and using smiley faces to indicate benefits and drawbacks

 

 

You’ll also find a wealth of educational resources to help you access your news feed and figure out how to set it up. Etrade’s OptionsHouse isn’t just for options trading. It can also be used for stock and futures trading. So buy bitcoin, litecoin and buy Nasdaq or S& Trading in P 500 index funds is also possible.

Overall, the platform promises speed, innovation, and a range of trading tools. However, its biggest advantage is ease of use for new users, as evidenced by our review for beginners.

Pro Platform

Reviews are quick to point out once you finish downloading Pro, so welcome to the world of advanced trading. The desktop platform is full of polished, idea-generating tools, including a strategy scanner feature. It also has a high level of customization and backtesting capabilities.

 

If you just want to track stocks, you can use the MarketCaster feature. An additional window opens, Etrade’s live streaming quote tool.

 

 

Key features of the Pro platform include:

  • Level 2 quotes
  • Real-time sales
  • 31 drawing tools
  • Over 20 trading tools
  • Different price types
  • 118 Technical Indicators
  • Real-time strategy scanner
  • Live streaming Bloomberg TV
  • Advanced charts by Chart IQ
  • Numerous options trading tools including Options Screener, Options Analyzer and Strategy Optimiser

However, the Pro platform has distinct drawbacks. You must create at least 30 traders per quarter and have a portfolio balance of $250,000. If not, access will set you back $99 per month. At this point, it’s worth highlighting TD Ameritrade and Charles Schwab for easy access to both flagship platforms without these criteria.

Also, I can’t see any alerts in the chart. A final drawback is that metrics cannot be saved as individual sets. Instead, the entire chart view should be saved as a custom profile.

Etrade mobile apps

Etrade’s mobile app reviews are very positive. In fact, many claim their services are the best in the industry. There are two free mobile apps. Once you have activated your account and downloaded the app you have free rein to manage your account and enter and exit trades. To be able to do that, we get:

  • Real-time quote
  • Interactive chart
  • Quick delivery
  • on-demand CNBC
  • International markets including cryptocurrencies

Additionally, access to trailing stops, order limits and after-hours trading are all effortless.

Advanced App

The OptionsHouse app boasts a sleek design and simple use. Once you have your account login details, you receive custom stock screening and third-party research ratings within the app. ChartIQ engine is also used in mobile apps. One useful feature this provides is that any notes you add to a chart in Etrade Pro will appear on the same chart on your mobile device. This includes drawings, trend lines, and channels.

Additionally, 10 of Etrade’s 118 studies can be applied to mobile devices. However, you must already have access to Etrade Pro to use this feature.

However, despite the many positive iPhone and Android app reviews, I had some complaints. For example, the app only supports 10 indicators, which is well below the industry average of 36.

Overall, even for dummies, the mobile app is quick and easy to grab. In fact, global financial trading reviews often rank Etrade’s apps among the best in the industry.

Payment methods

When you open a brokerage account, you must transfer money to your bank account.

Fortunately, there are several methods when it comes to depositing and withdrawing.

  • Paypal
  • Western Union
  • Bank Transfer – This is the fastest method and usually takes the same business day for your account. However, international transfer fees may apply, and these amounts vary by location. Wiring instructions can be found on Etrade’s official website.
  • Debit and credit cards – Visa and most other cards are accepted.
  • Send Checks – You can deposit at your local E*trade branch. Transfers usually take 5 business days.

You should be able to see how much money you can withdraw within your account. Withdrawal time varies depending on the payment method.

Financial Investments and Trading Review is satisfied with the current payment methods offered as they are fairly industry standard.

The main advantage is that Etrade offers truly international trading as the above methods can be used regardless of your location, whether you are from India or the US.

Etrade accounts

Etrade offers a variety of options in terms of accounts, from joint brokerage accounts to managed accounts. A standard day trading brokerage account is relatively simple to set up. Go to the homepage and follow the onscreen instructions. A minimum of $500 is required to open a brokerage account, which can be deposited by bank transfer, postal mail, or at one of your local Etrade offices.

You may be required to upload documents and meet other criteria if you choose an alternative account type. If you choose a personalized investment account from Etrade’s Capital Management, we may incur additional fees, such as:

  • Core Portfolio
  • Blended portfolio
  • Private Portfolio

Demo account

Unfortunately Etrade does not offer a free demo account. It’s a shame as the guidelines most brokers have taken since 2018 have all allowed users to sign up for virtual trading. They provide the perfect opportunity for novice traders to build confidence and learn how to react to market events before risking any real capital. So, the lack of a working account is a serious downside to Etrade offerings.

Additional features

Research

Etrade reviews are quick to point out that there are many additional helpful resources out there. In particular, conducting research is straightforward. For example, when you get a quote for Amazon (AMZN), you get the following benefits:

  • Summary of key statistics
  • Mini chart of daily price action
  • From price analysis to Trefis Research
  • Buy and sell buttons
  • Set warning
  • Headline

Etrade also offers third-party studies such as:

  • Thomson Reuters
  • Smart Consensus
  • Dawn of Fame
  • MarketEdge

It’s worth noting that fewer than competitors like Fidelity and TD Ameritrade offer at least six.

Fortunately, Etrade users have a selection of stocks, options, ETFs, bonds, and mutual funds. Stock screeners facilitate filtering by third-party ratings of research partners. The main problem, however, is that many screeners are visually dated, making them less enjoyable for users.

etrade education

Fortunately, the education section is extensive. Traders can find articles, instructional videos, webinars, instruction manuals, audio support and more. It has everything from the basics of comparing exchange rates and hotkeys to sophisticated options for uninvested cash.

Automated trading

You can also explore automated trading with E*Trade. Industry-leading applications connect directly to Etrade. An open XML-based application programming interface allows you to customize your solution. Alternatively, you can choose from several providers including:

  • Ion Desk
  • TradeLens
  • Robo Invest
  • Investor Hub
  • CoolTrade Auto Trader

Properly used robo-advisors can help you increase your profits. You can execute a lot more trades than you can manually. However, as highlighted in our API review, it comes with risks and requires consistent monitoring.

Regulation and license

Many people want to know if Etrade is a good company they can trust. Indeed, this trust factor is becoming increasingly important for users concerned about being hacked or fouled out by dishonest brokers. Therefore, it is important to ensure that your brokerage is properly regulated.

Fortunately, Etrade is compliant with multiple agencies including the SEC and FINRA. As a result, clients can relax knowing that their capital is protected in a variety of scenarios. But more importantly, Etrade is subject to various rules and regulations designed to protect its users.

As a result, non-US citizens can use Etrade with confidence, whether it be on the London Stock Exchange or commodities such as gold or platinum.

Etrade benefits

If you are thinking of investing in Etrade, user reviews point out a number of unique benefits, including:

  • Beginner friendly – Etrade is fantastic for new traders. Registering and filling out forms is quick and easy. You can then take advantage of our simple web-based platform and take advantage of a range of educational resources.
  • Bulk Discounts – In addition to low options fees and free trades, Etrade offers bulk discounts to active traders.
  • Minimum Requirements – Entry requirements are low and users are not required to maintain significant minimum balances.
  • Extensive Resources – Futures and Options Review was particularly impressed with the wealth of information, data and useful user guides.
  • Industry-leading mobile apps – both mobile apps offer a seamless transition from desktop-based trading platforms.
  • Security – Part of the financial login process is a two-factor authentication system that greatly reduces the risk of hacking.
  • Various assets – you can speculate on stock prices, options, bonds, mutual funds and ETFs.
  • 24/7 customer service – Reliable support is essential, especially for new traders. Fortunately, Etrade promises to answer all your questions via live chat, phone and email support.
  • Accessibility – Etrade founders and owners can say they want to encourage global trading as users from Germany to Australia are all welcome.

All of these factors have helped Etrade bolster its market cap and highlight its benefits when compared to rivals such as interactive brokers, Robinhood, Fidelity, and Scottrade.

Etrade cons

Despite the numerous advantages, customer and company reviews also brought to mind a number of disadvantages:

  • No Forex Trading – People who want to trade FX are disappointed because Etrade does not offer currency trading.
  • High commissions – despite scoring high at some price points, the $6.95 standard commission is above the industry average.
  • No Demo Account – Etrade does not currently offer free practice accounts to prospective traders. This means users cannot explore paper trades to familiarize themselves with the market or test drive trading platforms.
  • Pro Platform Restriction – $250,000 in assets is required to use the Pro Platform. Our Etrade vs Schwab, Ameritrade and Scottrade reviews are quick to highlight that there are no requirements to access their flagship platforms.

Is Etrade a good deal? The answer to that depends on which of the above pros and cons is the most important to you.

 

 

Transaction time

Etrade is not good in terms of trading times. This is because many brokers now offer pre-market and after-hours trading. However, clients can trade certain ETFs 24 hours a day, 5 days a week.

Detailed analysis:

  • You can trade from 20:00 on Sunday to 20:00 on Friday, excluding market holidays.
  • You can trade by phone from 04:00 to 07:00 ET, excluding market holidays.
  • You can trade on SPY, QQQ, USO, GLD, FXI, EEM, DIATLT, IWM, SLV, SH and UNG.

So whether you have a standard, business or international account, you have plenty of opportunities to speculate on the markets.

Contact & Customer Support

Etrade customer service representatives are available to help with almost any query. In fact, they promise 24/7 phone and online chat help. Visit our homepage to find contact phone numbers for your area. This will allow us to provide technical support if your account does not work or simply help you log out.

You can also find the mailing address of your local office or visit your local branch.

You can also access customer service representatives directly from your account. You can send secure messages and update your account information here. You can also upload your documents.

Etrade tries and encourages users to find their own answers by going to their FAQ page. There you can find information on how to close your account, the cost of the Pro platform and extended trading hours.

Customer service representatives cannot provide tax advice.

Overall, Etrade is good for day trading in terms of customer support. However, those looking for real discount support may want to look elsewhere as some discount brokers offer live video chat support.

Safety Security

When you sign up for a global trading account, Etrade takes customer security seriously. As a result, it uses an external account verification system. The two-step verification tool comes in the form of a unique access code in the free app. Simply enter your password each time as you enter it.

We also use sophisticated encryption technology to protect your personal information and all transaction activity. Etrade will also compensate you for any losses resulting from unauthorized use of our services.

etrade verdict

Etrade finance company has built a strong reputation over the years. They have become a starting point for reliability, extensive research and mobile apps. However, while Etrade is certainly not the cheapest broker, active traders can benefit from a tiered fee structure.

Overall, stock trading, futures, options, mutual funds, and automated investment reviews all rank high on Etrade. Their comprehensive offer can meet the needs of both beginners and veteran traders. It also demonstrated its commitment to innovation by acquiring OptionsHouse in 2016.

Accepted countries

E-Trade only accepts traders from the USA.