E*TRADE Review

E*TRADE from Morgan Stanley is a versatile broker that appeals to investors of all levels, from beginners buying their first stock to experienced traders in need of advanced tools and research. My hands-on experience with E*TRADE’s platforms and trading tools left me confident that it offers something valuable for every type of investor.

E*TRADE offers access to professional-grade research, innovative tools, and a seamless trading experience. Whether exploring thematic ETFs, analyzing stocks with Trefis visualizations, or managing your portfolio with Morningstar’s tools, E*TRADE provides clarity and control to self-directed investors.

Pros & Cons

Overall summary

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Range of investments

When considering the investment options I need from my brokerage firm, I focus on aligning my needs with the diversification of my portfolio. E*TRADE offers a solid foundation for diversification, catering to both beginners starting their investment journey and seasoned investors refining their strategies.

Investment products: E*TRADE stands out by providing access to a broad spectrum of investment products and account types, tailored to support a diversified portfolio strategy. Its offerings include stocks, ETFs, mutual funds, options, fixed-income products (bonds and CDs), and futures. This comprehensive lineup ensures investors can balance risk and reward while achieving diversification across multiple asset classes.

Fixed-income: E*TRADE’s fixed-income tools are particularly noteworthy, with features like a yield curve visualization that simplifies identifying and acting on opportunities. With today’s changing markets, interest rates are back in the spotlight — something we haven’t truly seen since the global financial crisis of 2008.

Account types: Equally impressive is the variety of account types E*TRADE provides, including traditional IRAs, Roth IRAs, SEP IRAs, custodial accounts for minors, and even business and trust account types. This flexibility allows investors to diversify not just within their portfolios but also across their financial goals—whether saving for retirement or building wealth for future generations.

Gaps: That said, E*TRADE isn’t without gaps. E*TRADE does not offer fractional share trading on individual stocks (although ETFs are offered). Additionally, the absence of cryptocurrency trading may be a drawback for investors looking to diversify into digital assets — a high-risk but increasingly popular asset class.

Commissions and fees

Evaluating commissions and fees is crucial when selecting a broker, as excessive costs can chip away at your portfolio. E*TRADE strikes a good balance with a transparent pricing structure and thoughtful features like no-fee Treasuries and its Dime Buyback program.

Stock and ETF commissions are in line with the industry standard. Zero-dollar commissions on stocks and ETFs are the industry norm now, and E*TRADE follows suit. In my view, brokers no longer win clients on stock and ETF commissions — they win them with tools and features. E*TRADE offers some great research capabilities and trading tools, which this review will cover extensively.

Options pricing offers competitive pricing with the dime buyback program. Options contracts are priced at $0.65 each, dropping to $0.50 for traders completing 30 or more trades per quarter. This is on par with industry norms. However, what truly sets E*TRADE apart is the Dime Buyback program, which waives commissions for closing short options priced at $0.10 or less. As someone who sells premium and trades options actively, I can’t overstate how valuable this feature is. Keeping short options open means keeping risk on the table, and the Dime Buyback program encourages traders to close out positions at minimal cost, reducing exposure while locking in gains.

Fixed Income pricing is fee efficient, especially regarding Treasurys. E*TRADE offers fee-free access to Treasury securities, both through new issue auctions and the secondary market. This feature couldn’t be more timely, given the higher yields driven by recent Federal Reserve rate hikes. For other fixed-income products, like corporate and municipal bonds, the cost is $1 per bond with a $10 minimum and a $250 maximum per trade — a reasonable structure for bond investors.

Mutual Funds are priced with a wide offering of no-fees. No-fee mutual fund trading is a standout feature for E*TRADE, and the lack of early redemption fees makes it particularly attractive for fund investors. Mutual fund fees have the most variance broker to broker as fund companies have individual agreements with each brokerage firm.

OTC Stocks and Penny Stocks come with a price. E*TRADE charges $6.95 per trade for over-the-counter (OTC) stocks priced under $1.00, dropping to $4.95 with 30 or more trades per quarter. While some brokers like Fidelity and Firstrade offer commission-free penny stock trading, E*TRADE’s fees align with its overall risk-centered structure. OTC stocks, often referred to as penny stocks, are inherently risky due to less stringent listing requirements. As fractional trading becomes more widespread (albeit limited to certain ETFs on E*TRADE), penny stocks are becoming less relevant for many investors.

There are additional fees to consider. E*TRADE includes real-time streaming quotes for accounts with a minimum balance of $1,000, but it does charge miscellaneous fees for corporate actions like mergers, stock splits, or tender offers. These fees reflect the added administrative costs associated with these actions but can be a minor annoyance for active traders.

Mobile trading apps

E*TRADE takes a unique and thoughtful approach to mobile investing by offering two distinct apps: its flagship app for everyday investors and the Power E*TRADE Mobile app for advanced and active traders. I personally appreciate this separation because data can easily overwhelm new investors, and visually condensing market information to suit everyone’s needs is no small task. Every investor is different, and this dual approach allows E*TRADE to cater to a broader audience without sacrificing usability.

When I evaluate a mobile app, I like to approach it from the perspective of various types of investors and ask a few key questions:

Can I Get a Quick Pulse on the Market? E*TRADE’s flagship app organizes market data into categories like Overview, Events, News, and Screeners. I loved being able to see major upcoming earnings and economic events at a glance. For example, I could quickly identify key earnings dates and other market-moving events. However, when PPI data was released that morning, I couldn’t find the actual numbers, which was disappointing, but thankfully the integrated news solved my curiosity. While the app provides a solid foundation for market awareness, it could go a step further by integrating real-time data for critical economic events.

What’s the Research and Watchlist Experience Like? The flagship app’s watchlist is highly customizable, with multiple views to suit different preferences. I liked how I could narrow down the news feed to focus specifically on the stocks in my watchlist, and the grid-like layout made it easy to absorb key information quickly. When researching individual stocks, I found everything I needed at my fingertips: earnings dates, detailed research, and the ability to set alerts directly from the app.

Does the App Offer Advanced Tools for Active Traders? For those who need more sophisticated tools, the Power E*TRADE Mobile app delivers. The Live Action Scanner distinguishes itself by providing predefined screeners to quickly spot unusual activity, volatility, or technical patterns. The charting tools are also impressive, with over 100 technical indicators and flexible navigation options like panning and scrubbing. The inclusion of contingent orders directly on the mobile app is another feature that advanced traders will appreciate, making it easier to execute complex strategies on the go.

Other trading platforms and tools

When evaluating a larger brokerage firm like E*TRADE, I expect more than just research and idea generation. Platforms and tools should go beyond the basics to include portfolio management, benchmarking against the market or a chosen index, and resources that extend beyond stocks and ETFs. As a self-directed investor, I also look for robust tax tools, proactive reminders like adding a beneficiary, and timely market insights to keep me informed and engaged. Let’s face it, if you’re managing your investments independently, you need tools that make the self-directed route easier and more effective.

On E*TRADE’s website, the landing page sets the tone perfectly. It offers a clear view of positions, market updates, investing ideas, and both economic and earnings calendars — all in one place. I loved the placement of their podcast, which immediately grabbed my attention with the headline, "Why money markets are not cash on the sidelines." It was so compelling that I subscribed on the spot. This is exactly the kind of timely and relevant content that keeps investors engaged and more importantly, informed.

Portfolio management tools are a highlight of E*TRADE’s platform. The ability to compare my portfolio’s performance to a benchmark of my choice provided a clear perspective on how I’m doing relative to the market. A deeper dive into asset allocation is powered by Morningstar, offering comparisons to recommended weights and tailored guidance based on your personal risk tolerance.

E*TRADE also provides a range of tools and calculators that go beyond portfolio tracking. The retirement score calculator stood out for me, incorporating social security benefits and external accounts to provide a comprehensive picture of retirement readiness. While the score was helpful, I would have preferred a breakdown of total savings and cash flow for a more actionable view (if I can be a bit picky). Still, you will not find these types of tools at all on brokers like Robinhood or Webull, yet they make financial planning practical and informative.

E*TRADE even has easy-to-use account maintenance and tax-related tools. The dedicated tax center provides contextual FAQs that simplify understanding taxable events — a must-have for self-directed investors. The platform also allows you to toggle wash sale adjustments, an essential feature, particularly in retirement accounts where tax cost basis is less critical. On top of that, E*TRADE flagged that I didn’t have a beneficiary right on the landing page and made it incredibly easy to update. These proactive and seamless touches set E*TRADE apart from many of its competitors.

Research

When I look for a holistic research platform, I want a tool that can take me through the entire journey of investing: from finding ideas to validating them, layering in the macro view, and finally, hearing an expert opinion. E*TRADE excels at guiding investors through this process with its well-rounded research tools, placing particular emphasis on intuitive data visualization.

Finding Ideas

E*TRADE’s stock screener is one of the most practical and comprehensive tools I’ve used. I tested the traditional version and was able to screen for stocks in the S&P 500 with below-industry forward P/E ratios and positive earnings and revenue expectations — exactly the right data for picking a stock. For those who do not have a process, there are predefined screens based on a plethora of technical or fundamental inputs. There was even a separate tab for thematic investing (limited to ETFs), making it a great tool for idea generation. This screener is truly useful and will be a go-to resource for me.

Moving on to funds, the fund screener offered solutions for every type of fund I searched for, whether by category, theme, or a more traditional approach. I particularly appreciated the ability to construct a portfolio based on risk tolerance using ETFs — some of which are eligible for auto-investment, a fantastic feature for hands-off, passive investors.

For fixed income, E*TRADE also provides an impressive and innovative screener. I loved the yield curve visualization, which allowed me to choose investments directly from the curve — an intuitive feature in an area that can often feel overwhelming.

Validating Ideas

E*TRADE makes validating investment ideas straightforward by combining data visualization with smart text. For stocks, all the detailed data is there, but you don’t need to know how to interpret it — visuals and contextual explanations do the heavy lifting for you. Whether you prefer the data-heavy or visual-driven way to validate your ideas, E*TRADE offers both. For funds, I could quickly grasp the intent of a fund and access all the expected data points. But here’s the gem: a histogram chart that displays the AUM (assets under management), illustrating market sentiment. Are investors pouring into or selling out of a specific ETF? You can see it right on E*TRADE’s platform. This feature adds another layer of insight that’s as practical as it is impressive.

Layering on the Macro (Researching the Market)

E*TRADE’s macro research tools made it easy to connect individual investments to broader market trends. The U.S. markets page was incredibly holistic, offering insights into major indices, yields, sector performance, and even earnings and economic calendars. I loved being able to see advances/declines and new highs/lows, which helped me interpret market moves. For instance, during testing, when the market began to sell off, I used these tools to confirm that the pullback was profit-taking rather than a deeper issue (like possibly overhyped AI companies).

Additionally, if I wanted to dive even deeper into the market, the sector comparison feature, enriched with fundamental data, gave me another layer of understanding about market dynamics.

Finally, I cannot discuss E*TRADE’s research offering without shedding light on the expert opinions powered by Morgan Stanley’s institutional-grade research. E*TRADE’s partnership with Morgan Stanley brings a polished and opinion-driven perspective to its research. The market dashboard is beautifully curated, presenting expert takes on key topics without room for distraction — you can explore this for hours. I did.

Education

E*TRADE’s education offerings have the potential to be exceptional but miss the mark in some areas. With undeniably high-quality content, a more cohesive organization and the addition of visual aids — particularly for options education — would make it even easier for investors to engage with and apply their knowledge effectively. When it comes to education, E*TRADE delivers what you’d expect from a large brokerage firm: a lot of it. But quantity alone isn’t enough. What truly matters is the quality of the content, the variety of topics, and the ability to bridge education with practical application. E*TRADE meets these expectations with polished videos, comprehensive articles, webinars, and resources covering everything from stocks to fixed income.

E*TRADE’s educational content is insightful and well-written, but the way it’s displayed can feel chaotic. For instance, articles on "what to know before picking a stock" sit alongside guides on "how to day trade," which might overwhelm new investors. That said, the material itself is excellent. Live and on-demand webinars cover a wide range of topics, offering flexibility for investors to learn at their own pace.

The quality and depth of E*TRADE’s content are especially impressive when it comes to funds and fixed income. I loved the deep dive into leveraged and inverse ETFs, along with an exploration of how market mechanics impact ETFs more than mutual funds, a nuance often missing in other educational resources. The fixed-income library is equally strong, breaking down bonds, CDs, and the factors influencing their market performance. Detailed explanations of terminology and trading strategies make the material accessible and practical, helping investors understand why fixed income deserves a spot in their portfolio.

Options education stands out for its logical progression and polished videos. It was refreshing to see a well-structured path for learning about a complex topic, starting with a webinar registration and leading into relevant articles. However, the content is text-heavy, and I would love to see more visuals and graphics to illustrate concepts like puts and calls. For example, describing puts as a form of protection is misleading as they’re only protective when paired with an underlying asset.

Customer service

To score Customer Service, StockBrokers.com partners with customer experience research firm Confero to conduct phone tests from locations throughout the United States. For this year's testing, 130 customer service tests were conducted over six weeks, with wait times logged for each call.

Customer service representatives were asked for assistance or details in several areas of broker services for prospective customers, including account opening, trading tools, apps, rollovers, active trading, and more. Here are the results for E*TRADE.

• Average Connection Time: 2 minutes
• Average Net Promoter Score: 8.4 / 10
• Average Professionalism Score: 7.3 / 10
• Overall Score: 7.76 / 10
• Ranking: 7th of 13 brokers

Banking services

E*TRADE, through Morgan Stanley Private Bank, offers FDIC-insured checking and savings accounts with no ATM fees, plus debit cards. Integrated with brokerage accounts, these services simplify cash management for investors. While practical, the offerings lack the depth of competitors like Bank of America’s Merrill Edge, which provides more in-depth banking options.

Final thoughts

E*TRADE strikes a solid balance between functionality and accessibility, making it a strong contender for self-directed investors across experience levels. Backed by Morgan Stanley, E*TRADE offers superb tools, diverse investment options, and comprehensive research.

Here are my top three takeaways for E*TRADE in 2025:

1. Comprehensive Research and Screeners: E*TRADE excels in research with features like Trefis revenue visualizations, intuitive screeners, and thematic investing tools. Investors can uncover opportunities across stocks, funds, and fixed income with a seamless blend of data and contextual education.
2. Exceptional Education and Resources: E*TRADE provides a wealth of well-crafted educational content across asset classes, supported by live and on-demand webinars. While the structure of some resources could improve, the inclusion of unique insights, such as market mechanics for ETFs and fixed income, demonstrates a thoughtful approach to empowering investors.
3. User-Friendly Platforms: From the intuitive E*TRADE Mobile app to the feature-rich Power E*TRADE platform, E*TRADE caters to both casual investors and advanced traders. Tools like customizable charts, live-action scanners, and integrated portfolio tracking ensure flexibility and depth, making it a versatile choice for a wide range of users.

Overall, I found E*TRADE to be a versatile platform that supports a variety of investing and trading needs while providing the tools and education that investors need to make confident decisions.

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Is E*TRADE trustworthy?

Yes, E*TRADE is a trustworthy and well-established regulated FINRA member brokerage firm. Founded in 1982, it has a long track record of serving investors. As a member of the Securities Investor Protection Corporation (SIPC), E*TRADE provides protection for securities customers, adding a layer of confidence. Its acquisition by Morgan Stanley in 2020 further strengthens its reputation, aligning it with a firm known for financial stability and expertise. Additionally, E*TRADE is transparent about its fees and commissions, fostering trust with its users.

Is E*TRADE FDIC insured?

E*TRADE offers FDIC insurance for its banking products through Morgan Stanley Private Bank. Here's how it works:

• Bank Accounts: Deposits in E*TRADE's checking and savings accounts are FDIC-insured up to $250,000 per depositor, per ownership category.
• Cash Balances in Brokerage Accounts: E*TRADE utilizes a sweep program that deposits uninvested cash into multiple partner banks, potentially providing up to $500,000 in FDIC insurance coverage for individual accounts.

It's important to note that while E*TRADE's brokerage accounts are not FDIC-insured, they are protected by the Securities Investor Protection Corporation (SIPC), which covers up to $500,000 in securities, including a $250,000 limit for cash.

Is E*TRADE a good choice?

E*TRADE is a strong choice for investors, offering commission-free trades, advanced platforms like Power E*TRADE, and extensive educational resources. It caters to both beginners and active traders but lacks access to cryptocurrency trading, international markets, and fractional shares. Overall, E*TRADE provides a versatile platform with tools and features that suit most self-directed investors.

Is E*TRADE good for beginners?

Yes, E*TRADE is a great choice for beginners. Its user-friendly web and mobile platforms, combined with extensive educational resources, make it easy to get started and build investing confidence. It also offers paper trading so that novice traders can familiarize themselves with both the platform and the markets before risking real money.

Is my money safe with E*TRADE?

Yes, your money is safe at E*TRADE, due to its account protection of up to $500,000 for securities and cash ($250,000 for cash) from the Securities Investor Protection Corporation, or SIPC. The parent company, Morgan Stanley Smith Barney, also carries additional coverage with a firmwide $1 billion cap and $1.9 million uninvested cash per client. Note, however, that as with any broker, insurance doesn’t cover you for market losses.

Is E*TRADE really free?

E*TRADE is a zero-dollar commission broker for trading U.S. stocks and ETFs and is one of our leading picks for free stock trading. E*TRADE makes money from margin lending, loaning securities, and payment for order flow.

Other costs associated with your E*TRADE brokerage account are those such as $0.65 per options contract, $6.95 per trade for penny stocks, $25 for broker-assisted trades, and a few incidental charges that are clearly disclosed on their fee schedule. While there’s no fee for real-time streaming quotes, there is a $1,000 minimum balance requirement to enable the feature.

How much does it cost to start an E*TRADE account?

There is no cost to open an E*TRADE account and there are no minimum balance requirements. There is even virtual trading with “paper money” if you want to practice before investing actual funds.

How do you buy stocks on E*TRADE?

• Open and fund an E*TRADE account.
• Research and select a stock that you believe will increase in value.
• Hit the "buy" button.
• Enter the number of shares you wish to buy, the maximum price you are willing to pay if you aren’t comfortable accepting the market price, and the amount of time the order will remain in effect.
• Preview the order.
• Place the order.

Who owns E*TRADE?

E*TRADE was acquired in 2020 by Morgan Stanley (NYSE: MS), a publicly traded financial services firm.

About E*TRADE

E*TRADE’s roots go back to the 1980s, when founder William Porter had a clever idea of trading stock via one of those newfangled Apple II personal computers. After meeting Porter at a party, Bernie Newcomb turned the idea into computer code. Now, thanks to them, virtually anyone can make or, heavens forbid, lose money investing in stocks via the World Wide Web.

E*TRADE acquired online broker OptionsHouse in September 2016 for $725 million, paving the way for what is now branded as the Power E*TRADE platform. In October 2020, E*TRADE was acquired by Morgan Stanley (NYSE: MS).

E*TRADE 2025 Results

For the StockBrokers.com 2025 Annual Awards, announced on Jan. 28, 2025, all U.S. equity brokers we reviewed were assessed on over 200 different variables across seven areas: Range of Investments, Platforms & Tools, Research, Mobile Trading, Education, Ease of Use, and Overall.

StockBrokers.com also presented “Best in Class” awards to brokers in the following additional categories: Active Traders, Bank Brokerage, Beginners, Casual Investors, Customer Service, Futures Trading, High Net Worth Investors, Investor Community, Options Trading, Passive Investors, Retirement Accounts. A “Best in Class” designation means finishing in the top five brokers for that category.

For more information, see how we test.

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StockBrokers.com Review Methodology

Our mission at StockBrokers.com is simple: provide thorough and unbiased reviews of online brokers, based on an extraordinary level of hands-on testing and data collection. Our ratings and awards are based on this data and our in-house experts’ deep authority in the field; brokers cannot pay for preferential treatment. Here’s more about trustworthiness at StockBrokers.com.

Our research team conducts thorough testing on a wide range of features, products, services, and tools for U.S. investors, collecting and validating thousands of data points in the process; this makes StockBrokers.com home to the largest independent database on the web covering the online broker industry. We test all available trading platforms for each broker and evaluate them based on a host of data-driven variables.

As part of our process, all brokers had the annual opportunity to provide updates and key milestones and complete an in-depth data profile, which we hand-checked for accuracy. Brokers also were offered the opportunity to provide executive time for an annual update meeting.

Our rigorous data validation process yields an error rate of less than .001% each year, providing site visitors quality data they can trust. Learn more about how we test or about StockBrokers.com.

E*TRADE fees and features data

The data collection efforts at StockBrokers.com are unmatched in the industry. The following tables show a deeper dive into the offerings available at this broker. You can also compare its offerings side-by-side with those of other brokers using our Comparison Tool.

In addition to meticulous annual data collection by our in-house analyst, every broker that participates in our review is afforded the opportunity to complete an in-depth data profile. We then audit each data point to ensure its accuracy.

Trading fees

Account fees

Margin rates

Investment options

Order types

Beginners

Stock trading apps

Stock app features

Stock app charting

Trading platforms overview

Trading platform stock chart features

Day trading features

Investment research overview

Stock research features

ETF research features

Mutual fund research features

Options trading overview

Banking features

Customer service options

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