Etrade is one of the most established online traders. This is partly due to their considerable marketing efforts, but also because they promise a user-friendly platform, extensive resources and competitive fees. This review of Etrade will detail all aspects of the offering including the history, accounts, commissions and product list.

 

 

A brief history

Before signing up to start day trading, it helps to understand how Etrade has evolved. The business came into being in 1982 when William A. Porter and Bernard A. Newcomb founded TradePlus in California with just $15,000. In 1991, Porter and Newcomb formed a new company, Etrade Securities. They began offering merchant services through America Online and Compuserve. By 1994, revenue was nearly $11 million, an impressive jump from 1992’s $850,000.

Just two years later, the company boasted 73,000 customers and processed 8,000 trades every day. Not to mention the quarterly turnover was an impressive $15 million. In June 1996, the company then went public via an initial public offering (IPO).

In the early 2000s, it looked like Etrade would merge with TD Ameritrade. However, disagreements over price-fixing and management rights prevented this agreement from coming to fruition. Instead, Etrade has two former discount brokers, Harrisdirect plus Brown & Company, acquired. Due to numerous business operations, E-Trade is now headquartered in New York, as well as other office locations around the world. Their growth has also meant that they can offer trade in:

  • supplies
  • OTC penny stocks
  • ETF
  • Futures
  • options
  • effects
  • Mutual funds

Some people don’t know if Etrade is a market maker. The answer is that G1 Execution Services LLC was the market unit of ETrade Financial Corporation. However, the business was sold to Susquehanna International in 2013.

Minimum initial deposit

One of the requirements if you want to start trading with Etrade is that you pay a direct account deposit of $500. There are alternatives that offer a lower minimum, but $500 is pretty much industry standard.

Distributions and commissions

Reviews from user traders were mostly positive regarding broker fees. Once you open an account, you can expect similar pricing to their main competitors, TD Ameritrade, Fidelity and Charles Schwab.

That does mean if you’re looking for massively discounted jobs, you might want to look elsewhere. That said, many people argue that you pay more because you get more, including powerful trading tools and valuable additional features.

Standard trade is $6.95 plus an additional $0.75 per contract. There are also volume discounts. This means that active traders can get rates up to $4.95 + $0.50 if they make more than 30 trades per quarter.

In addition, Etrade offers commission-free ETFs. While they don’t quite offer the 296 no-fee ETFs found at TD Ameritrade, they still promise 225, ranking third in the industry.

Leverage

Reviews and ratings show that Etraders are satisfied with the leverage options. Once you open a margin account, you can borrow up to 50% of your eligible equity to purchase products. If you use trading in the right way, you can take advantage of the opportunities and improve your earnings.

It can also allow you to speculate on numerous markets, from foreign stocks and gold to cryptocurrencies, such as ethereum, ripple and bitcoin futures. However, you should check the futures requirements for your account type.

You also need to keep in mind marginal calls, and with high rates you could see yourself losing more than your original account balance. Therefore, you need to be careful and whether this type of trade is worth it will depend on the individual trader.

Other Trading Fees

There is no inactivity fee for intraday traders. However, you will have to pay a transfer fee of $75. In fact, day trading broker reviews were under the impression that Etrade’s pricing structure was relatively transparent, ensuring that users were not hampered by hidden fees.

There is also good news regarding promotions and bonus offers. With an account bonus, you can take advantage of 60 days of commission-free trades when you deposit $10,000. Furthermore, the broker sometimes has a referral to a friend scheme. The requirements vary. So go to their website to see how it works.

Trading Platforms

Once you have opened an Etrade account and logged in, you can choose from three trading platforms. While all can be used to trade a wide variety of markets and instruments, the broker review forums have highlighted certain strengths and limitations of each option.

Etrade Web

Reviews from web platform customers are quite positive. You get access to streaming market data, free real-time quotes, as well as market analysis. The user interface is quite smooth and simple to navigate. For example, from the dashboard you can track accounts, create watch lists and execute trades.

In addition, Etrade offers easy-to-follow user guides and manuals to help you get the most out of the web system. However, tool reviews have highlighted that the web platform is perhaps best suited for beginners who do not need advanced trading tools.

OptionsHouse

Etrade bought the established OptionsHouse trading platform in 2016. Platform reviews and options forums suggest that it is a better choice for those who want to trade actively, rather than hold long positions. You can get a wealth of real-time data, tickets and dozens of mapping tools. In fact, you get:

  • Give notes to each trade
  • Many option levels
  • 100 technical studies
  • Stop quoting
  • An option chain screen with 30 different customizable columns
  • Risk / reward broken down in detail and even using smiley faces to represent pros and cons

You also get access to news feeds and can find a wide variety of educational resources that will help you learn how to set up. It is also worth emphasizing that Etrade’s OptionsHouse is not just for options trading. It can also be used for stocks and futures. So bitcoin, litecoin and the Nasdaq or S&P 500 index fund are also possible.

Overall, the platform promises speed, innovation and a wealth of trading tools. But as beginner reviews have proven, ease of use for new users is perhaps its greatest strength.

 

 

Pro Platform

Once you’ve finished downloading the Pro, as reviews are quick to point out, you’ll be welcomed into a world of advanced trading. The desktop platform is slick and packed with idea generation tools, including the Strategy Scanner feature. There are also high levels of adaptability and retest capabilities.

If you just want to track stocks, you can use the MarketCaster feature. It opens with an extra window and is Etrade’s real-time streaming quotes tool.

Highlights of the Pro platform include:

  • Level 2 Citations
  • Real time sales
  • 31 drawing tools
  • More than 20 trading tools
  • A range of price types
  • 118 technical indicators
  • Real time strategy scanner
  • Live streaming Bloomberg TV
  • Advanced mapping from Graph IQ
  • Many options trading including Options Screener, Options Analyzer and Strategy Optimizer

However, the Pro platform has a distinct disadvantage. You must account for a quarter of at least 30 traders and maintain a portfolio balance of $250,000. If not, access will set you back $99 each month. At this point, it is worth highlighting both TD Ameritrade and Charles Schwab for facilitating access to both their flagship platforms without such criteria.

Additionally, you cannot see alerts on maps. The ultimate downside is that you can’t save indicators as individual sets. Instead, you should save the full map version as a custom profile.

Etrade mobile apps

The reviews of Etrade’s mobile app are extremely positive. Many people believe that their offering is among the best in the industry. There are two free mobile apps. Once you have activated your account and downloaded the app, you have free rein to manage your account and enter and exit trades. To help you do this, you get:

  • Real-time quotes
  • Interactive Maps
  • Fast transfers
  • CNBC on Demand
  • International markets, including cryptocurrency

Plus, it’s painless to place trailing stops, limit orders, and obtain post-trade.

Advanced program

The OptionsHouse app boasts a sleek design and ease of use. Once you have your account login details, you get custom stock screening and third-party research ratings within the app. The ChartIQ engine is also used within the mobile apps. One useful feature it brings is that any note you add to a card in Etrade Pro will appear on the same card on your mobile device. This includes drawings, trends and channels.

In addition, you can take any ten of Etrade’s 118 studies on your mobile device. However, to be able to use this feature, you must already have access to Etrade Pro.

Despite many positive iPhone and Android app reviews, there have been a few complaints. For example, the app only supports ten indicators, which is well below the industry average of 36.

In general, the mobile apps, even for dummies, are fast and easy to use. In fact, global financial trading reviews often rate Etrade’s programs as the best in the industry.

Methods of payment

Once you’ve opened your brokerage account, you need to transfer money to and from your bank account. Fortunately, there are a number of ways you can make deposits and withdrawals, including:

  • PayPal
  • Western Union
  • Bank transfer – this is the fastest method and funds are usually in your account the same working day. However, you may incur an international bank transfer fee, the value of which depends on your location. You can find wiring instructions on the official website of Etrade.
  • Debit and Credit Card – Visa and the majority of other cards are accepted.
  • Mail a check – You can make a deposit at your local E * trade branch. Transfers usually take five working days.

You should be able to see how much is available for your withdrawal directly within your account. Note the withdrawal times will depend on the payment method.

Financial investment and trading reviews are satisfied with the current payment methods offered, as they are fairly industry standard.

The biggest advantage is that Etrade offers truly international trading as the above methods are available regardless of location whether you are from India or the US.

Etrade Accounts

Etrade offers a number of options in terms of accounts, from joint brokerage accounts to managed accounts. The brokerage account for regular day trading is relatively simple to set up. Simply go to their home page and follow the on-screen instructions. You need a minimum of $500 to open their brokerage account, which can be deposited by bank transfer, mail or deposit in one of your local Etrade offices.

If you choose an alternative account type, you may need to upload documents and meet other criteria. In addition, there may be additional fees if you opt for personalized investment accounts from Etrade’s Capital Management, which include:

  • Core portfolio
  • Mix portfolios
  • Dedicated portfolios

Demo account

Unfortunately, Etrade does not offer a free demo account. This is a shame, as the directions most brokers have taken since 2018 are all moving towards allowing users to enter virtual trades. This provides the perfect opportunity for novice traders to build confidence and learn how to react to market events before risking real capital. A lack of practice account is therefore a serious disadvantage for the Etrade offer.

 

 

Additional features

Research

Etrade reviews quickly show that there are a number of valuable additional resources available. Research in particular is simple. For example, if you set up a quote for Amazon (AMZN), you would get:

  • A summary of key statistics
  • A minigraph of the day’s price action
  • Price analysis from Trefis Research
  • Buy and sell buttons
  • Messages set up
  • news

In addition, Etrade produces research from third parties:

  • Thomson Reuters
  • Smart Consensus
  • Morning star
  • MarketEdge

It is worth noting that this is less than competitors, such as Fidelity and TD Ameritrade, which deliver at least six.

Fortunately, Etrade users can also take advantage of screeners for stocks, options, ETFs, bonds and mutual funds. The stock screen facilitates filtering through third-party ratings from its research partners. However, the main problem is that many of the screens are visually dated and result in a less pleasant user experience.

Etrade Education

Fortunately, the education department has expanded. Dealers can find articles, training videos, webinars, user guides, audio support and more. There’s everything from the basics of comparing exchange rates and shortcut to sophisticated options for uninvested cash.

Automatic trading

You can also explore automated trading with E*Trade. You can connect leading applications directly in Etrade. The open XML-based application programming layer allows users to customize solutions. Alternatively, you can choose from a number of providers including:

  • IonDESK
  • TradeLens
  • Roboinvest
  • Investor Center
  • CoolTrade Auto Trader

Using correct Robo advisors can help you increase the profit. You can simply execute far more trades than you could ever do manually. However, as API overviews highlight, they carry risks and require continuous monitoring.

Regulation and License

Many people simply want to know if Etrade is a good company that can be trusted. In fact, this element of trust is becoming increasingly important for users who understandably worry about being hacked or falling for a dishonest broker. This is why it is important to make sure your brokers are properly regulated.

Fortunately, Etrade adheres to the regulations of a number of bodies, including the SEC and FINRA. As a result, clients can relax knowing that their capital will be protected in a variety of scenarios. But more importantly, Etrade will have to adhere to a series of rules and regulations designed to protect users.

As a result, non-US citizens can also Etrade with confidence, whether it’s the London Stock Exchange or commodities like gold and platinum that pique your interest.

Etrade Benefits

If you are considering investing with Etrade, user reviews point to various benefits, including:

  • Beginner Friendly – Etrade is great for new traders. Registering and filling in the forms is quick and easy. You can then use a simple web-based platform and take advantage of a variety of educational resources.
  • Share discount – On top of low options fees and free trades, Etrade also offers volume discounts for active traders.
  • Low minimum requirements – Entry requirements are low and users do not need to maintain a significant minimum balance.
  • Extensive Resources – Futures and Options Reviewers were particularly impressed with the wealth of available information, data and helpful user guides.
  • Leading Mobile Apps – Both mobile apps ensure a smooth transition from the desktop based trading platforms.
  • Security – Part of the financial login process is a 2-factor authentication system that should significantly reduce the risk of hacking.
  • Diverse Assets – You can speculate on stock prices, options, bonds, mutual funds and ETFs.
  • 24/7 Customer Service – Reliable support is essential, especially for new traders. Fortunately, Etrade promises live chat, phone and email support to answer questions.
  • Accessibility – You can tell that Etrade founders and owners want to encourage global trade, as users from Germany to Australia are all welcome.

All these factors have contributed to Etrade strengthening their market capitalization and highlighting their advantages compared to competitors, such as vs Interactive Brokers, Robinhood, Fidelity and Scottrade.

Etrade disadvantages

Despite the many benefits, customer and business reviews have also identified a number of downsides to keep in mind, including:

  • No forex trading – Those wanting FX reviews will be disappointed as Etrade does not offer any forex trading.
  • High commissions – despite a good performance in some price areas, the standard commission of $6.95 is above the industry average.
  • No Demo Account – Etrade does not currently offer a free practice account for prospective traders. This means that users cannot explore the trading paper to familiarize themselves with the markets or the trading platforms for test drives.
  • Pro Platform Limits – To use the Pro Platform you need assets of $250,000. Etrade vs Schwab, Ameritrade and Scottrade’s reviews are quick to emphasize that no such requirements are imposed for access to their flagship platforms.

So is Etrade good? The answer to this will depend on which of the advantages and disadvantages above are most important.

Trading hours

Etrade is neither good nor bad in terms of trading hours. This is because many brokers now offer on-market and after-hours trading. However, clients can trade specific ETFs 24 hours a day, five days a week. For a detailed breakdown:

  • You can trade Sunday 8:00 PM to Friday 8:00 PM ET, excluding market holidays.
  • You can trade by phone from 4:00 AM to 7:00 AM ET, excluding market holidays.
  • Trading will be available on SPY, QQQ, USO, GLD, FXI, EEM, DIATLT, IWM, SLV, SH and UNG.

Whether you have a standard, business or international account, there are many opportunities to speculate on markets.

Contact and customer service

For almost all queries there is an Etrade customer service agent who can help you. They actually promise 24/7 phone and online chat support. Visit their homepage to find the contact number in your region. They should then be able to offer technical assistance if your account isn’t working, or simply help you log out.

You can also find email addresses for your local offices, or you can appear in a local branch.

Additionally, you can access a customer service representative directly from your account. From there you can send secure messages and update any account information. You can even upload documents.

With that said, Etrade tries to encourage users to find their own answers by going to their FAQ page. There you can find answers about how to close an account, cost of Pro platform and information about extended trading hours.

Note that customer service agents cannot issue tax advice.

Overall, Etrade is good for day trading in terms of customer support. But those who really want hands-on help can look elsewhere, as some discount brokers now offer live video chat support.

Safety and Security

Once you’ve signed up for your global trading account, Etrade takes customer security seriously. Because of this, they use an external account verification system. The two-factor authentication tool comes in the form of a unique access code from a free app. You simply need to enter it every time you enter your password.

In addition, sophisticated encryption technology is used to secure personal information and all transaction activities. Furthermore, Etrade will cover any losses resulting from unauthorized use of their services.

Etrade ruling

The financial company Etrade has built up a strong reputation over the years. They have become a go-to for reliability, extensive research and mobile apps. However, Etrade is certainly not the cheapest broker, although active traders can benefit from the tiered commission structure.

Overall, the stock trading, futures, options, mutual fund and automated investment reviews rate Etrade highly. Their extensive offering ensures that they can meet the needs of beginners as well as veteran traders. Furthermore, their acquisition of OptionsHouse in 2016 demonstrates their commitment to innovation.

Accepted countries

E-Trade only accepts traders from the United States.