AES independent review - E*TRADE Financial Corporation

Founded in 1982, E*TRADE Financial has approximately 4,100 employees and 30 retail branches across the United States.

E*TRADE Financial has long been one of the most popular online brokers. It was acquired by Morgan Stanley in February, 2020.

The company's $0 commissions and strong trading platforms appeal to active traders, while beginner investors benefit from a large library of educational resources.

It is regulated by top-tier financial authorities like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Key features:

The account has no minimum amount.
No base commission; $0.65 per contract (volume discount available).
No annual or inactivity fee. $75 full transfer out fee; $25 partial.
All ETFs trades are commission-free.
Over 4,500 of no-transaction-fee mutual funds.
The tradable securities include: stocks, bonds, mutual funds, ETFs, options and futures.
There are two platforms (free for all) used:

E*TRADE Web
Power E*TRADE

Two apps in use:

E*TRADE mobile
Power E*TRADE

*Available on iOS and Android.

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 result of the company's acquisition of OptionsHouse several years ago.

The web platform offers real-time data, more than 100 technical studies, over 30 drawing tools, streamlined trade tickets, customisable options chain views and trading ladders.

NOTE:

You can find detailed pricing information in the FAQs section.
We would highly recommend reading the 'expert verdict' section of this review to learn why our team of experts gave E*TRADE Financial 1 out of 5 stars.

Additionally, here's a free guide that can help you achieve better results. In this guide, you'll learn:

Academic evidence only shared with a select few firms across the world
A real-life example of why you should never try to outguess the market
Why a fund's past performance is not enough to predict future returns
Why you need to focus on what you can control and why this leads to a better investment experience
Why you should accept the markets for what they are
What can impact behaviour and make people seek instant gratification

The Pros

> Wide range of investments

> Easy-to-use tools

> Decent DIY platform

> Has a knowledge library

> User-friendly mobile trading platform

> Commission-free stock, options and ETF trades

The Cons

> Complex choice of instruments

> No independent advice

> Dealing commissions

> Website can be difficult to navigate

> High fee for wire transfer withdrawal

> High fees for non-free mutual funds

What are the main investment choices with E*TRADE Financial?

They range from simple to complex and include:

Stocks
ETFs
Mutual funds
Bonds
Options
Futures

What is the detailed pricing structure of E*TRADE Financial?

Here is a break down of the detailed pricing structure:

1. Stock and option trades:

Pricing	0-29 Trades/ QTR	30+Trades/ QTR
Stock and options trades (US Exchange-listed stocks)	$0	$0
Options contract fee	$0.65	$0.50
Exercise	$0	$0
Dime Buyback Program	$0 contract fee	$0 contract fee

NOTE:

For option orders, an option regulatory fee will apply.
Additional regulatory and exchange fees may apply.
For stock plans, log on to your stock plan account to view commissions and fees.
Customers will be charged an additional $25 for broker-assisted trades.

2. Exchange-traded funds (ETFs):

Pricing	0-29 Trades/ QTR	30+Trades/ QTR
ETFs	$0	$0

3. Bonds:

U.S. Treasury auction	$0
U.S. Treasury secondary trades online	$0
Online secondary trades	$1 per bond (minimum $10, maximum $250)
Broker-assisted trades	Online secondary pricing plus $20 commission
Through fixed income specialists	Net yield basis
New issues (except Treasury auction)	Offering price includes a selling concession

4. Futures:

Futures contract commission

$1.50 per contract, per side + fees (excluding bitcoin futures)*

*Commissions for bitcoin futures products are $2.50 per contract, per side +fees.

5. Mutual funds:

No-load, no-transaction-fee funds	$0
Transaction fee funds	$19.99
Load funds	See prospectus for amount of load
Early redemption fee for no-load, no transaction fee for Mutual Funds	$49.99

6. Margin rates:

Debit Balance	Margin Rate
$1,000,000 or more	5.45% (1% below base rate)
$500,000 to $999,999.99	6.45% (Equal to base rate)
$250,000 to $499,999.99	6.95% (0.50% above base rate)
$100,000 to $249,999.99	7.45% (1.00% above base rate)
$50,000 to $99,999.99	7.95% (1.50% above base rate)
$25,000 to $49,999.99	8.45% (2.00% above base rate)
$10,000 to $24,999.99	8.70% (2.25% above base rate)
Less than $10,000	8.95% (2.50% above base rate)

7. E*TRADE Personalised Investments:

Core Portfolios

Account market value	Flat annual advisory fee
$500+	0.30%

Blend Portfolios

Account market value (minimum of $25,000)	Blended annual advisory fee
First $100,000	0.90%
Next $150,000	0.80%
Next $250,000	0.75%
Next $500,000	0.70%
Next $1,000,000 and more	0.65%

Dedicated Portfolios

Account market value (minimum of $150,000)	Blended annual advisory fee
First $1,000,000	1.25%
Next $1,000,000	1.15%
Next $3,000,000	1.10%
Next $5,000,000 and more	0.95%

Fixed Income Portfolios

Account market value (minimum of $250,000)	Blended annual advisory fee
	Actively Managed Portfolios	Laddered Portfolios
First $1,000,000	0.75%	0.45%
Next $2,000,000	0.70%	0.40%
Next $1,000,000 and more	0.65%	0.35%

8. Retirement accounts:

Fees	Amount
Early withdrawals taken before age 59½ (premature distributions)	$25
Excess contribution removal	$25
Recharacterizations	$25

NOTE: All fees will be waived if combined E*TRADE Securities account balances total over $100,000 or you have placed 30 or more trades in the last quarter.

Additional charges like IOF, activity fees and special request fees may apply based on your individual circumstances.

E*TRADE Financial Corporation is a financial services company headquartered in New York City.

It is an online discount stock brokerage firm for self-directed investors. Investors can buy and sell such securities as stocks, bonds, options, mutual funds, and exchange-traded funds via electronic trading platforms, or by phone.

E*TRADE Financial also provides banking services to retail investors, such as sweep deposits and savings products.

E*TRADE
Financial

An independent review by our team of experts

REVIEW SUMMARY

E*TRADE Financial

The Pros

The Cons

Reasonably happy

Expert assessment of E*TRADE Financial

E*TRADE Financial Investors Presentation

Guide to activating E*TRADE account for US participants

E*TRADE Financial Bank Account Agreement

E*TRADE Financial Bank Rate & Fee Schedule

E*TRADE Financial Customer Agreement

Details of Morgan Stanley's Acquisition of E-TRADE

E*TRADE 2020 Benefits Portfolio

Start getting better results in just one phone call

Ready to start the conversation?

We'll call, learn about you and help you decide if we're a good fit. It's that easy.

Services

Company

Contact

E*TRADE Financial

An independent review by our team of experts

REVIEW SUMMARY

E*TRADE Financial

Other customers also viewed

The Pros

The Cons

Reasonably happy

Expert assessment of E*TRADE Financial

E*TRADE Financial Investors Presentation

Guide to activating E*TRADE account for US participants

E*TRADE Financial Bank Account Agreement

E*TRADE Financial Bank Rate & Fee Schedule

E*TRADE Financial Customer Agreement

Details of Morgan Stanley's Acquisition of E-TRADE

E*TRADE 2020 Benefits Portfolio

Start getting better results in just one phone call

Ready to start the conversation?

We'll call, learn about you and help you decide if we're a good fit. It's that easy.

Services

Company

Contact

E*TRADE
Financial