Etrade is one of the best established online trading brokers. This is partly the result of their considerable marketing efforts, but also because they promise a user-friendly platform, vast resources, and competitive fees. This review by Etrade will detail all aspects of their offer, including their history, accounts, commissions and product listings.
Brief history
Before you sign up to start day trading, it helps to understand how Etrade has evolved. The company was born in 1982 when William A. Porter and Bernard A. Newcomb founded TradePlus in California with just $15,000. Then in 1991, Porter and Newcomb formed a new business, Etrade Securities. They started offering trading services through America Online and Compuserve. By 1994, sales were close to $11 million, an impressive leap from $850,000 in 1992. Just two years later, the company boasted 73,000 customers and was processing 8,000 transactions a day. Not to mention quarterly revenue of an impressive $15 million. In June 1996, the company then went public through an initial public offering (IPO). In the early 2000s, it looked like Etrade would merge with TD Ameritrade. However, disagreements over pricing and governance have prevented the deal from becoming a reality. Instead, Etrade acquired two former discount brokerages, Harrisdirect plus Brown & Company.
- Stocks
- OTC stocks
- ETF Fund
- Future
- Options
- Bonds
- Mutual Fund
Some people are not sure if Etrade is a market maker. The answer is that G1 Execution Services LLC is the market maker of ETrade Financial Group. However, the business was sold to Susquehanna International in 2013.
Minimum initial deposit
One of the requirements if you want to start day trading with Etrade is that you have to pay a direct $500 minimum account deposit. While there are alternatives that offer lower minimums, $500 is pretty industry standard.
Margins and commissions
User trading reviews are mostly positive regarding brokerage fees. When you open an account, you can expect similar prices to their main competitors, TD Ameritrade, Fidelity and Charles Schwab. This is not to say that if you are looking for massively discounted commissions, you may want to look elsewhere. Having said that, many people assume that you pay more because you get more, including powerful trading tools and valuable extras. Standard stock trades are $6.95, plus $0.75 per contract. There are also volume discounts. This means that active traders can get prices as low as $4.95 + $0.50 if they make more than 30 trades per quarter. On top of that, Etrade offers free ETFs. While they don’t quite offer the 296 free ETFs found at TD Ameritrade, they still promise 225, putting them third in the industry rankings.
Take advantage
Reviews and ratings show that Etraders are assets with leveraged options. When you open a margin account, you can borrow up to 50% of the qualified equity to purchase the product. Used correctly on margin trading can help you take advantage of opportunities and increase your income. It can also allow you to speculate on multiple markets, from foreign stocks and gold to cryptocurrencies, such as ethereum, ripple, and bitcoin futures. However, you will need to check the futures margin requirements for your account type. You also have to keep in mind margin calls, and high prices can see you actually lose more than your initial account balance. So caution is required and whether this type of trade is worth it will depend on the individual trader.
Other transaction fees
There are no inactivity fees for day traders. However, you will have to pay a $75 wire transfer fee. In fact, day trading broker reviews are so impressive that Etrade’s pricing structure is relatively transparent, ensuring users won’t be tripped over by hidden fees. There is also good news about promotions and bonus offers. Account Bonuses could see you benefit from 60 days of commission-free trading when you deposit $10,000. Furthermore, brokers sometimes run a referral program. Requirements vary, so head over to their website to see how it works.
Exchanges
When you open an Etrade account and log in, you will have three options of trading platforms. While all can be used to trade a wide range of markets and instruments, broker review forums have outlined certain strengths and limitations for each option.
Etrade Web
Web platform customer reviews are quite positive. You have access to online market data, free real-time quotes, as well as market analysis. The user interface is quite slick and simple to navigate. For example, from the dashboard you can monitor accounts, create watch lists and execute trades.
In addition, Etrade provides easy-to-follow instructions and user guides so you can get the most out of the web system. However, reviews of the tool have emphasized that the web platform is probably best suited for beginners who don’t need advanced trading tools.
Options
Etrade purchased the OptionsHouse trading platform that was founded in 2016. Review forums and platform options suggest it is a better choice for those who want to actively trade, rather than hold long positions. You can get loads of real-time data, tickers and dozens of charting tools. In fact, you get:
- File notes with each transaction
- Multiple levels of options
- 100 technical studies
- Stop on quote
- An optional string screen with 30 different custom columns
- Risks/rewards are broken down into detail and even use smileys to show benefits and drawbacks
You can also access the news feed and can find a huge amount of educational resources that will help you figure out how to get set up. It is also worth highlighting that Etrade’s OptionsHouse is not just for options trading. It can also be used for stock and futures trading. So buy bitcoin, litecoin and trade Nasdaq index funds or S& The P 500 is also quite possible. Overall, the platform promises speed, innovation and a multitude of trading tools. But as the beginner reviews have demonstrated, perhaps its greatest strength is its ease of use for new users.
Professional background
Once you’ve finished downloading the Pro, as reviews are quick to point out, you’re welcomed into a world of cutting-edge trading. The desktop platform is sleek and packed with idea generation tools, including a Strategy Scanner feature. There is a lot of customization and the possibility of backtesting is too high.
If you want to track only stocks, you can use the MarketCaster function. This opens with an additional window and is Etrade’s real-time streaming quote engine.
Pro platform highlights include:
- Level 2 Quotation
- Real-time Sales
- 31 drawing tools
- More than 20 trading instruments
- A wide range of prices
- 118 technical indicators
- Real-time Strategy Scanner
- Bloomberg TV Live Stream
- Advanced Charts from IQ Graph
- Multiple options trading tools, including Option Screener, Option Analyzer and Strategy Optimizer
There is a distinct downside to the Pro platform though. You must earn a minimum of 30 traders a quarter and keep a portfolio balance of $250,000. Otherwise, access will set you back $99 per month. At this point, it is worth highlighting that both TD Ameritrade and Charles Schwab facilitate access to both of their top platforms without such criteria. On top of that, you can’t see the alerts on the chart. The final downside is that you can’t save the indices as individual sets. Instead, you must save the entire chart view as a custom profile.
Etrade Mobile App
Etrade mobile app reviews are extremely positive. In fact, many argue that their offering is among the best in the industry. There are two free mobile apps. Once you have activated your account and downloaded the app, you have the freedom to manage your account and enter and exit trades. To help you do that, you get:
- Real Time Quotes
- Interactive chart
- Fast Transfer
- CNBC on demand
- International markets, including cryptocurrencies
In addition, placing stops, limit orders and trading access after business hours is painless.
Advanced Applications
The OptionsHouse app boasts a beautiful design and is simple to use. Once you have your account login details, you’ll get custom stock screenings and third-party research ratings from within the app. The ChartIQ tool is also used in mobile applications. One useful feature this brings is that any notes you add to the chart on Etrade Pro will appear on the same chart on your mobile device. This includes drawings, trendlines and channels. Alternatively, you can do any ten of Etrade’s 118 studies on your mobile device. However, to use this feature, you must have access to Etrade Pro. Although there are many positive reviews about the app for iPhone and Android, there have been some complaints. For example, the app only supports ten metrics, significantly below the industry average of 36. Overall, even for dummies, mobile apps are quick and easy to grasp. In fact, global financial trading reviews often rank Etrade apps as the best in the industry.
Payment Methods
Once you have opened your brokerage account, you will need to transfer funds from and into your bank account. Fortunately, there are several ways you can go about deposits and withdrawals, including:
- PayPal
- Western Alliance
- Transfer – This is the fastest method and the funds are usually in your account within the same business day. However, you may incur international wire transfer fees, the value of which will depend on your location. You can find wiring instructions on the official Etrade website.
- Debit cards & credit cards – Visa and most other cards accepted.
- Deposit Checks – You can deposit money at your local E* merchant branch. Shipping usually takes five business days.
You will be able to see the amount that can be withdrawn directly from your account. Note that withdrawal time will vary depending on the payment method. Reviews of financial investments and transactions are content with current payment methods offered, as they are pretty industry standard. The main benefit is that Etrade actually offers international trading as the above methods are available regardless of location, whether you are from India or USA.
Etrade Account
Etrade offers several account options, from general brokerage accounts to managed accounts. A standard day trading brokerage account is relatively simple to set up. Just go to their homepage and follow the on-screen instructions. You will need a minimum of $500 to open their brokerage account, which can be deposited by bank transfer, mail or deposit to one of your local Etrade offices. If you choose an alternative account type, you may need to upload documents and meet other criteria. On top of that, there may be additional fees if you choose personalized investment accounts from Etrade Capital Management, including:
- Core Portfolio
- Blend Portfolio
- Dedicated Portfolio
Demo account
Unfortunately, Etrade does not offer a free demo account. This is a shame as the directions of most brokers since 2018 are towards allowing users to sign up for virtual trading. They provide the perfect opportunity for novice traders to build confidence and learn to react to market events, before risking real capital. So the lack of a practice account is a serious drawback to the Etrade offering.
Additional Features
Research
The Etrade review is quick to point out that there are a number of valuable additional resources available. In particular, conducting research is simple. For example, when you’ve taken a citation for Amazon (AMZN), you’ll get:
- Summary of key statistics
- A small chart of the day’s price action
- Price analysis from Trefis Research
- Buy and Sell Button
- Setup warning
- Title
On top of that, Etrade offers third-party research from:
- Thomson Reuters
- Smart consensus
- Morning Star
- Editing Market
It’s worth noting that this is less than competitors, such as Fidelity and TD Ameritrade, who offer at least six. Fortunately, Etrade users can also benefit from screens for stocks, options, ETFs, bonds, and mutual funds. The stock screener facilitates filtering by third-party ratings from its research partners. The main problem, however, is that many of the screening machines are displayed visually and thus result in a less enjoyable user experience.
Etrade Education
Fortunately, the education section is extensive. Traders can find articles, training videos, webinars, user guides, audio support and much more. There’s everything from the basics of comparing exchange rates and hotkeys to sophisticated options for uninvested cash.
Automatic trading
You can also explore automated trading with E*Trade. You can connect industry-leading applications directly to Etrade. An open XML-based application programming interface that allows users to customize solutions. Additionally, you can choose from several providers, including:
- IonDESK
- Commercial
- Invest
- Investment Center
- CoolTrade Auto Trader
Correct use of robo-advisors can help you increase your profits. You can just make more trades than ever by hand. However, when evaluating APIs stand out, they come with risks and require consistent monitoring.
Regulations & License
Many people simply want to know if Etrade is a good company that can be trusted. In fact, this factor of trust is becoming more and more important for users, who may be concerned about getting hacked or making a mistake with a dishonest broker. That is why it is important to check that your broker is properly regulated. Fortunately, Etrade is compliant with regulations from a number of agencies, including the SEC and FINRA. Thus, clients can relax knowing their capital will be safe under a wide range of scenarios. But more importantly, Etrade will have to comply with a series of rules and regulations designed to protect users. Thus, non-American citizens can also be confident, whether it is the London Stock Exchange or commodities like gold and platinum hitting the highest levels you care about.
Benefits of Etrade
If you are thinking about investing with Etrade, user reviews point to a number of distinct benefits, including:
- Beginner Friendly – Etrade is great for new traders. Signing up and filling out forms is quick and easy. You can then use a simple web-based platform and benefit from a wide range of educational resources.
- Volume Discounts – In addition to low option fees and free trading, Etrade also offers volume discounts for active traders.
- Low Minimum Requirements – Low entry requirements and users do not have to maintain a substantial minimum balance.
- Extensive Resources – Future reviews and options are particularly impressive given the wealth of useful information, data and manuals available.
- Industry leading mobile apps – Both mobile apps ensure a smooth transition from desktop based trading platforms.
- Security – Part of the financial login process is a 2-factor authentication system that greatly reduces the risk of being hacked.
- Diversified Assets – You can speculate on the prices of stocks, options, bonds, mutual funds and ETFs.
- Customer Service 24/7 – Reliable support is essential, especially for new traders. Luckily, Etrade promises live chat, phone and email support to answer any questions.
- Accessibility – You can tell Etrade founders and owners really want to encourage global trading, as users from Germany to Australia are welcome.
All these factors have helped Etrade increase their market capitalization and highlight their benefits when compared to competitors, such as compared to Interactive Brokers, Robinhood, Fidelity and Scottrade.
Cons
While there are many benefits, customer and company reviews have also identified a number of disadvantages to be aware of, including:
- No Forex Trading – Those who want to rate forex will be disappointed, as Etrade does not offer currency trading.
- High Commissions – Despite scoring well in some price areas, the $6.95 standard commission is higher than the industry average.
- No demo account – Etrade currently does not offer a free practice account to potential traders. This means that users cannot explore paper trading to familiarize themselves with the market or test drive trading platforms.
- Pro Platform Limit – To use the Pro platform, you need $250,000 worth of assets. Etrade vs Schwab, Ameritrade and Scottrade reviews are quick to highlight no such requirements apply to access their top platforms.
So Etrade is a good deal? The answer to that will depend on which of the above advantages and disadvantages are for you.
Trading hours
Etrade is neither good nor bad in terms of trading hours. This is because many brokers now offer marketing deals before and after business hours. However, clients can trade specific ETFs 24 hours a day, five days a week. For a detailed breakdown:
- You can trade Sunday 20:00 to Friday 20:00 ET, excluding market holidays.
- You can trade by phone from 04:00 to 07:00 ET, excluding market holidays.
- Trading will be available on SPY, QQQ, USO, GLD, FXI, EEM, DIATLT, IWM, SLV, SH and UNG.
So whether you hold a standard, trading or international account, there are plenty of opportunities to speculate in the markets.
Contact Customer Support
For almost all queries, there is an Etrade customer service agent that can help you. In fact, they promise to help by phone and live chat 24/7. Visit their homepage to find contact phone numbers in your area. They can then provide technical support if your account is down, or simply help you sign out. You can also find mailing addresses for local offices or you can join a local branch. Alternatively, you can access a customer service representative directly from your account. From there you can securely send messages and update any account information. You can even upload documents. Having said that, Etrade doesn’t try and encourages users to find their own answers by visiting their FAQ page. There you can find answers on how to close an account, Pro platform costs and information about extended hours trading. Please note that customer service agents cannot provide tax advice. Overall, Etrade is great for day trading in terms of customer support. However, those who want real support may want to look elsewhere, as some discount brokers now offer live video chat support.
Safety & Security
Once you have registered your global trading account, Etrade takes customer security very seriously. Therefore, they use an external account verification system. Two-factor authentication comes in the form of a unique access token from a free app. You only need to enter this as you enter your password each time. In addition, sophisticated encryption technology is used to protect personal information and all transactions. Furthermore, Etrade will cover any losses resulting from unauthorized use of their services.
Judgment
Etrade Financial Group has built a strong reputation over the years. They have become a trusted, extensively researched and mobile app. However, Etrade is certainly not the cheapest broker around, although active traders can benefit from a tiered commission structure. Overall, trading in stocks, futures, options, mutual funds and automated investment reviews all give Etrade a very high rating. Their comprehensive offering ensures they can meet the needs of both new and veteran traders. Furthermore, their acquisition of OptionsHouse in 2016 demonstrates their commitment to innovation.
Accepted countries
E-commerce only accepts merchants from the United States.