E*TRADE was established in 1982 as the first online brokerage in the United States. Highlights include $0 trades. Two excellent mobile apps. Power E*TRADE is great for beginners, active and options trading.
Minimum Deposit: $0.00
Stock Trade Fee: $0.00
Options (per Contract): $0.65
Top Takeaways in 2021
We spent three months testing the best online brokers to create our 11th Annual Review. Here are our top findings from E*TRADE
Power E*TRADE, available as a mobile application and web platform, offers a modern design and a wide range of trading tools. E*TRADE was ranked No.1 in our scoring because of its ease of use and depth. E*TRADE was awarded No. 1 for Best Web Trading Platform, Best Trade App and Best for Options Trading.
E*TRADE was awarded Best in Class (top 5) for offering Investments, Active Trading and Futures Trading.
E*TRADE may not be as comprehensive as other competitors, but its ease of use makes it an attractive option for beginners.
Overall Summary
Feature | Rating |
Overall | 4 |
Commissions & Fees | 4 |
Platforms & Tools | 4 |
Research | 4.5 |
Mobile Trading | 5 |
Offering of Investments | 5 |
Education | 4 |
Easy to Use | 4 |
Commissions and Fees
E*TRADE's regular stock and ETF trading costs are $0 while option trades cost $0 + $0.65 per contract.
Pre-Market and Post Hours: A $.005 ECN fee per share is added when trading occurs between pre-market and postmarket hours. This is a fee that none of E*TRADE’s competitors charge.
Penny stocks - E*TRADE charges $6.95, unlike Charles Schwab or Fidelity which charge no commission ($0) on penny stocks.
Streaming market information: E*TRADE requires a minimum $1,000 balance to enable streaming quotes.
E*TRADE pricing summary:
Feature | E*TRADE |
Minimum Deposit | $0.00 |
Stock Trades | $0.00 |
Penny Stock Fees (OTCCB) | $6.95 |
ETF Trade Fee | $0.00 |
Options (Base fee) | $0.00 |
Options (per Contract) | $0.65 |
Futures (Per contract) | $1.50 |
Mutual Fund Trade Fee | $19.99 |
Broker Assisted Trading Fee | $25.00 |
Platforms and Tools
Power E*TRADE was built as a web platform and is innovative and offers traders speed, ease of access, and the tools necessary to succeed. Power E*TRADE took home the award for "Best Web Based Platform" in our 2021 review. E*TRADE also won our top spot in options trading.
Charting: Power E*TRADE’s charting engine is powered and maintained by Chart IQ. This third-party provider of HTML5 charts is an outstanding choice. Highlights include seamless zooming and panning, integrated Trading Central analysis (Recognia), 114 optional technical indicators, 32 drawing tools, and smooth panning. We had to be picky in order find the flaws. TD Ameritrade's thinkorswim platform offers preset grid functionality, so running multiple concurrent charts can seem a little cumbersome.
Options trading: Power E*TRADE provides the perfect combination of usability and excellent tools for casual and active options traders (screening via StrategySEEK and scanning via LiveAction) and seamless position management (custom groupings, real-time streaming greks, risk analysis, etc. Power E*TRADE offers a great platform for learning how to trade options. Snapshot Analysis tools, for example, translate risk/reward with smiling faces. Additionally, key events to keep an eye out for are listed alongside a P&L diagram. It's an amazing work of art.
Futures Trading: This is similar to options trading. Power E*TRADE provides an excellent experience for trading futures. Multiple futures ladders may be run simultaneously, orders can easily be sent using the Quick Trade widget, while managing positions is easy.
Research
E*TRADE gives everyday investors everything they need for market analysis. This includes ETFs, mutual fund, bonds, and ETFs. E*TRADE, however, trails category leaders in areas such as website design and in-house commentary.
E*TRADE also offers five options for third-party stock research reports. E*TRADE also provides consensus ratings from several third-parties. This includes breakdowns by individual analysts via TipRanks. The website also offers charting that includes Trefis prices estimates, along with links to Trefis full analysis. E*TRADE's internal staff can also be found on the web platform, with the Market Happenings series and Daily Insights series. Bloomberg TV is also available.
Cons: E*TRADE is not as usable and modern-looking as Charles Schwab's hand-crafted quotes and screening experiences. E*TRADE offers in-house market commentary, analysis (articles), however it trails its closest rivals in quality, depth, quantity. Live broadcasting is not available, which is where Charles Schwab and TD Ameritrade excel.
Mobile Trading
E*TRADE Mobile (and Power E*TRADE Mobile) were again top performers in our 2021 review. They are simple to use and feature rich. E*TRADE Mobile can be used for stock trading; Power E*TRADE Mobile can be used for options or futures trading.
E*TRADE MOBILE: E*TRADE Mobil is beginner-friendly. This app focuses on what is most important to casual investors: portfolio Management, quotes, watchlists, market research, trading, and portfolio management. The streaming and customizable watch list feature allows for streaming (minimum balance of $1,000). Quotes can include advanced and basic charts, price alerts, news and additional research, such as third-party report. E*TRADE Mobile had Bloomberg TV, basic trade idea screens for stocks, ETFs, mutual funds, and more. This is a rare feature for mobile apps.
Power E*TRADE Mobile is designed for advanced trading but Power E*TRADE's modern design and platform layout make it easy to use. You can switch between advanced multilegged options trading, with many pre-defined strategies, streaming Bloomberg TV, or futures trading. Live Action is an advanced tool that can help you identify potential investment opportunities by providing pre-defined options screeners, which are classified according to unusual activity or volatility.
Charting via mobile devices: Charting is easy on Power E*TRADE thanks to ChartIQ. This engine is also used for the web-based Power E*TRADE charting experience. The depth of the chart varies depending on the app. E*TRADE Mobile only offers ten indicators. Power E*TRADE Mobile gives you 108 indicators. Apart from the difference in indicators, panning and zooming are extremely easy to use.
Offering of Investments
E*TRADE is a full-service brokerage that offers all the services an investor needs. E*TRADE Capital Management provides financial-planning and investment services, as well stocks, options and bonds. E*TRADE Bank provides banking services while E*TRADE Futures LLC offers futures trading.
E*TRADE is missing forex trading and international trade, which are both rare offerings among US-based brokerages.
E*TRADE offers crypto trading. E*TRADE doesn't currently offer cryptocurrency trading.
Education
E*TRADE has a mixed offering in terms of educational offerings. Although there is lots of content, the website is hard to navigate.
E*TRADE has a lot of positive points. It relies mostly on third party content providers and provides an extensive selection of educational material. With dozens upon dozens articles in more than ten categories, E*TRADE covers all topics related to investing, from stock trading, retirement, and even retirement. You can also find archived recordings and at least 25 webinars each month.
Cons: E*TRADE was disappointing in our learning experience and we would have liked to have received more education for beginners investors. All educational content can be sorted by topic in the "Library". You can choose a topic and there is no progress tracking or preset flow. Although there is lots of content available, you won't be able to find what you are looking for and it doesn't engage you. Videos are also very limited.
Banking
E*TRADE provides essential banking services at 30 locations throughout the US, in addition to trading. Checking accounts are available with no ATM fees and high-yield savings accounts. Debit cards can also be used. E*TRADE Bank has been registered with the Federal Deposit Insurance Corporation (FDIC), and it insures bank deposits of up to $250,000.
E*TRADE can't be compared to Bank of America Merrill Edge. However, FDIC insured banking is not common in the online brokerage sector.
Final Thoughts
E*TRADE is a market leader in mobile, online and options trading, thanks to Power E*TRADE offerings. The company continues to innovate every year. E*TRADE is a complete offering that will satisfy most. E*TRADE offers a full-service brokerage that is reliable regardless of your investment style.