E*TRADE
Financial

An independent review by our team of experts

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 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

The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or, representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by AES to be reliable and AES has reasonable grounds to believe that all factual information herein is true as at the date of issue. It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorised reproduction or transmitting of this material is strictly prohibited. AES accepts no responsibility for loss arising from the use of the information contained herein.

‘AES’ refers to the AES Group’s separate but affiliated entities generally, rather than to one particular entity. These entities are AES Middle East Insurance Broker LLC registered with the UAE Ministry of Economy, United Arab Emirates, Licence no. 571368, and Commercial Registration no. 75162 and regulated by the UAE Central Bank license no. 189; AES Financial Services Limited, incorporated and registered in England and Wales with company number 06063185, authorised and regulated by the UK Financial Conduct Authority FRN: 464494; AES Financial Services (DIFC) Ltd, registered in the Dubai Financial Centre (DIFC) as a foreign company, license no.2128, and regulated by the Dubai Financial Services Authority (DFSA) Reference No F003476; AES International Limited, a private company incorporated and registered in the British Virgin Islands with company number 1839872; AES International Global Limited, a private company incorporated and registered in the British Virgin Islands with company number 1887885. Please visit our authorisations page for further information on regulation, redress and accessibility.

If you are outside the UK and we advise you or carry out other business, nearly all the rules, regulations and arrangements made under the UK regulatory regime (including the rules made by the FCA and the dispute resolution process provided by the UK Financial Ombudsman Service) will not apply to most aspects of the service you receive, such advice or business being provided from outside the UK. You should therefore clearly understand such rights and protection as are afforded in the jurisdiction where you receive advice. Local law, regulation and redress processes will apply in almost all cases, and will be different from that of the UK.

RISKS

Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investment, when redeemed, may be worth more or less than the capital invested. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. For further information, please click here.

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