E*TRADE is a stockbroker that has been around since 1982. At first glance, this seems the perfect recipe for successful trading. The broker has enough experience, and it is still operating after so long, so it must be doing something good, right? Well, even if this is a good sign, you never know what to expect from a broker. Before you start investing, you should do some research so you learn as many things as you can about the trading platform.
E*TRADE is known to offer several benefits, but you should still find out more about its pros and cons and only then decide if this is the trader you should trust with your time and money. This review will go in-depth about E*TRADE and show you both the good and bad sides of it.
Who Is Etrade?
E*TRADE is a stockbroker based in the United States. It was founded in 1982. The platform has a long track record, and for this reason, many look at it as a safe service with plenty of experience. In 2020, the broker was bought by Morgan Stanley. It is one of the most popular brokers, and it can offer $0 commissions, tools to help build your portfolio, and many educational resources. The platform also has a lot of mutual funds, while offering different other tradable securities.
E*TRADE brings a lot of educational resources and investing tools to the table, as well as trading securities. Still, this is not always enough to convince you to trade on the platform. For this exact reason, there are many things you must still learn about the broker before committing. Below you can find some useful data about E*TRADE and its safety levels.
Who Is Etrade for?
E*TRADE is a wonderful option for traders who want some assistance in planning their retirement, but it is also a good platform for people who want to learn more about trading. There are a lot of resources that can help educate a person in trading and not only, and a lot of individuals will love this side of E*TRADE.
This is one of the reasons why the platform is a great option for beginners as well. They can find many useful things to get them started on top of the main tools. Frequent traders can also find this platform useful.
Overall, here are the categories of people E*TRADE is right for:
- Beginner investors
- People looking for data and research to increase their knowledge
- Individuals looking for a platform with free commissions
- Frequent traders
- People looking for a site offering assistance for retirement planning
Things We Like
Checking out E*TRADE has revealed a lot of things to us, things that we really appreciated about the platform. First of all, we were more than impressed to see that the broker offers free commissions. The trade commission used to come with a fee until 2019. It used to be $6.95 until they decided to give up on it and made the commissions $0 for ETF trades, options, and online stock. There may still be a contract charge for options, but it is only $0.65. Active traders will have a discounted fee of $0.50, though.
Then, we also liked the fact that there are multiple investment options. There are different futures and advanced options strategies, while people also have access to over 4,500 no-transaction-fee mutual funds. It is something that both retirement investors and active traders can benefit from. Thanks to that, it is a strong competitor for other brokers as well.
The cost will be $19.99/transaction for the mutual funds that are not tax-free.
On top of that, we immediately found out about E*TRADE Web and Power E*TRADE, which are the two trading platforms that the broker offers. They are not only easily available for every client, but also free to use. We found it especially amazing that the Power E*TRADE platform comes with a lot of drawing tools and studies, but also with real-time data, which can be very useful for any active trader.
Besides, the E*TRADE website has some demos and educational materials available that can show you the platforms’ features before you try them.
Things We Don’t Like
Although E*TRADE comes with many advantages, we also discovered something we did not like. The website is not transparent enough. It can be very hard to find out the account minimum required, or some information on how to close an E*TRADE account that you do not want anymore. This information is very important, but E*TRADE falls short in this area. So, it has some work to do because every client must find this data readily available.
Pros / Cons
- Multiple investment options
- E*TRADE Web and Power E*TRADE are free to use for all client
- Power E*TRADE platform comes with real-time data, which is useful for any active trader
- Infrequent traders pay more for options contracts
- Can be very hard to find out the account minimum required
- Need at least $500 for automated investment management
Safety and Regulation
Is Etrade Regulated?
The broker is regulated, which makes it a pretty safe trading platform to use. The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) are the regulators. These regulators are some of the top-tier ones in the U.S., so this is a good sign for anyone who wants to start trading.
Is Etrade Safe?
E*TRADE is generally considered a safe company for various reasons. First of all, as already mentioned, it is regulated by some of the highest authorities in the United States. But apart from that, the platform is considered so safe because it has a lot of experience and banking background. Top investor protection is ensured, and a lot of clients belong to a great financial authority. What is more, it is also listed on the stock market.
Where E*TRADE falls short in terms of safety is the fact that there isn’t any negative balance protection.
Countries It Accepts Clients from
E*TRADE only accepts clients from the United States. It is not accessible for people who are not citizens of the U.S., so you must live in the States in order to be able to use it.
E*TRADE also won some awards throughout the years. In February 2021, it was considered the best trader for mobile trading in Barron’s Annual Online Broker Survey. In November 2020, it won the title of Best Brokerage for Beginners, and In October, it won the award for the Best Robo-Advisor for Mobile Experience. These are only a few of the awards they have won so far.
Range of Offerings and Products
The amazing thing regarding E*TRADE is the fact that it has many services to offer. It has many tradable securities available, respectively mutual funds, stocks, bonds, options, ETFs, and futures. More than 4,500 mutual funds require no fees, and all ETF trade commissions are free.
You can use the trader in many ways, as it has different platforms. It has a web and a mobile platform, and both of them are pretty amazing. The web platform is user-friendly, and it just feels very nice to navigate. It has some great search functions, as all you have to do is type the asset’s ticker or the name of the company. Two-step authentication is also available, making the platform safer overall. The downside is the fact that customizability is limited.
The mobile trading platform is just as amazing and runs as nicely as the web one. It can be downloaded on both Android and iOS devices, and you can use the app in French, English, and Spanish. The search function is amazing and there are ways to set notifications and alerts. Unfortunately, two-step authentication is not available here, but you can use TouchID.
E*TRADE has different account types available, respectively individual accounts, business accounts, joint accounts, pension accounts, custodial accounts, retirement accounts, education savings accounts, and E*TRADE personalized investments accounts. Let’s find out more about how you can deposit and withdraw money from your account.
Depositing money on E*TRADE is possible through bank transfer. Sadly, credit/debit card transfers are not possible.
There isn’t any minimum deposit for basic accounts, but margin accounts require $2,000 for minimum deposits, while E*TRADE Personalized Investments require between $500-$150,000.
Similar to deposits, withdrawals can only be done via bank transfers.
E*TRADE offers a demo account feature for Power E*TRADE, which is great if you want to test the waters before you start using the platform.
E*TRADE has promotions from time to time, and you have to keep an eye on them. For example, you can use codes and get a bonus of $600 or more when you open and fund an account.
Client Support and Education
A series of educational materials are available on E*TRADE, such as webinars, articles, videos, and more. You can even get educational articles. There is also a demo account, but only for Power E*TRADE.
Verdict – Overall Rating
E*TRADE can be a great service for beginner investors or active investors, as it has a lot of tradable securities, $0 commissions, and multiple educational materials. They should still make it possible to deposit and withdraw money through multiple methods, not just bank transfers. But overall, it is a safe platform that you could make use of in your trading endeavors.
All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. Our reviews and overall scores are based on the key areas above, in a combination with our opinion and commentary.
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There is a very high degree of risk involved in trading securities.
With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.
All investments involve risks and are not suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against the loss, in a down market.
There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. More details here.
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