E*TRADE Review 2025: Powerful Platform for All Experience Levels
With dozens of online brokerages competing for your investment dollars, ETRADE stands out as one of the industry’s pioneers. But has this veteran platform kept pace with newer competitors offering zero-commission trading and innovative features? This comprehensive ETRADE review examines the platform’s offerings, tools, pricing, and overall experience to help you determine if it’s the right brokerage for your investing needs.
- What is E*TRADE?
- Core Features and Account Types
- Trading Platforms and Tools
- Pricing and Fees
- Research and Educational Resources
- Portfolio Analysis and Management
- Core Portfolios (Robo-Advisory Service)
- Customer Service and Support
- Pros and Cons of E*TRADE
- Who Should Use E*TRADE?
- E*TRADE vs. Competitors
- Security and Account Protection
- How to Open an E*TRADE Account
- Frequently Asked Questions
- Final Verdict: Is E*TRADE Worth It in 2025?
What is E*TRADE?
ETRADE is a full-service online brokerage platform that offers trading in stocks, options, futures, ETFs, mutual funds, bonds, and more. Founded in 1982, it was one of the first brokerages to offer online trading to retail investors. In 2020, ETRADE was acquired by Morgan Stanley but continues to operate as a distinct brand with its own platform and services.
- Founded: 1982
- Parent Company: Morgan Stanley (since 2020)
- Account Minimum: $0 for brokerage accounts
- Trading Fees: $0 for stocks, ETFs, and options (+ $0.65 per options contract)
- Available Assets: Stocks, ETFs, options, futures, mutual funds, bonds, CDs
- Mobile App: iOS and Android
- Customer Support: 24/7 phone support, chat, email, and physical branches
E*TRADE serves a diverse client base, from beginner investors to active traders, with tiered service levels and platform options based on trading activity and account balance.
Core Features and Account Types
E*TRADE offers a comprehensive suite of account types and trading capabilities to meet various investor needs:
Available Account Types
- Individual and joint brokerage accounts
- Traditional, Roth, and Rollover IRAs
- SEP and SIMPLE IRAs for small businesses
- Solo 401(k) plans
- Custodial accounts (UGMA/UTMA)
- Trust accounts
- E*TRADE Premium Savings Account
- Max-Rate Checking
- E*TRADE Line of Credit
- E*TRADE Checking Portfolio
- Certificates of Deposit (CDs)
Investment Options
E*TRADE provides access to a wide range of investment vehicles:
- Stocks: U.S. and international equities
- ETFs: Over 2,000 commission-free ETFs
- Options: Multi-leg options strategies with competitive pricing
- Futures: Contracts on various commodities, currencies, and indexes
- Mutual Funds: Over 4,400 no-load, no-transaction-fee mutual funds
- Bonds and Fixed Income: Corporate bonds, municipal bonds, treasuries, new issues, and CDs
- Prebuilt Portfolios: Core Portfolios (robo-advisor) and Prebuilt Mutual Fund Portfolios
This diverse offering allows investors to create well-rounded portfolios across various asset classes all within the same platform.
Trading Platforms and Tools
E*TRADE offers multiple trading platforms designed for different types of investors, from beginners to active traders:
E*TRADE Website
The standard web platform provides:
- Clean, intuitive interface for casual investors
- Basic charting and fundamental research
- Account management and portfolio analysis
- Watch lists and basic screening tools
- Educational resources and market news
Power E*TRADE Platform
The advanced Power E*TRADE platform offers sophisticated tools for active traders:
| Feature | Functionality | Benefit |
|---|
E*TRADE Pro (For Active Traders)
Available to customers who maintain a brokerage balance of at least $250,000 or execute at least 30 stock or options trades per quarter, E*TRADE Pro offers:
- Fully customizable workspace with detachable windows
- Advanced charting with over 120 studies and drawing tools
- Real-time streaming quotes and market data
- Strategy back-testing capabilities
- Enhanced screening tools
- Direct market access routing
Mobile Trading
E*TRADE offers two mobile apps:
- E*TRADE Mobile: Core functions for casual investors
- Account management and portfolio tracking
- Mobile check deposit
- Stock and ETF trading
- Basic research and news
- Watch list synchronization
- Power E*TRADE Mobile: Enhanced features for active traders
- Advanced charting with indicators
- Options chain analysis
- Multi-leg options trading
- Technical pattern recognition
- Customizable watch lists
- Futures trading capabilities
Bloomberg Integration
Pricing and Fees
E*TRADE’s fee structure is competitive with other major online brokers:
Trading Commissions
- Stocks and ETFs: $0 per trade
- Options: $0 base + $0.65 per contract (reduced to $0.50 per contract for customers who execute 30+ trades per quarter)
- Futures: $1.50 per contract, per side
- Mutual Funds: $0 for no-transaction-fee (NTF) funds; $19.99 for transaction-fee funds
- Bonds: $1 per bond ($10 minimum, $250 maximum)
Account Fees
- Account Maintenance: $0 (no annual or inactivity fees)
- Account Transfer: $75 for full transfer out; $25 for partial
- Wire Transfers: $25 for outgoing domestic; $0 for incoming
- Paper Statements: $2 per statement ($0 if enrolled in electronic delivery)
- Margin Rates: 11.95% – 6.20% (decreases with higher loan amounts)
Robo-Advisor Fees
- Core Portfolios: 0.30% annual advisory fee ($500 minimum investment)
Research and Educational Resources
E*TRADE provides extensive research tools and educational content to support investor decision-making:
Research Tools
- Third-Party Research: Access to reports from Morgan Stanley, Thomson Reuters, Moody’s, and Morningstar
- Stock Screeners: Multiple filtering options based on fundamental and technical criteria
- ETF Screener: Sort and filter ETFs by expense ratio, performance, and sector
- Mutual Fund Screener: Search by performance, ratings, fees, and investment objectives
- Options Analyzer: Evaluate potential options trades with profit/loss projections
- Bond Screener: Filter fixed-income securities by yield, maturity, and rating
Educational Content
E*TRADE offers a robust educational platform called “Knowledge”:
- Articles and Guides: Covering investing basics to advanced trading strategies
- Videos and Webinars: Live and on-demand content on various financial topics
- In-Person Events: Educational seminars at E*TRADE branches (pre-registration required)
- Thematic Investing: Resources on trending investment themes and sector analysis
- Retirement Planning Tools: Calculators and guides for retirement preparation
The education center is organized by experience level and topic, making it easy for investors to find relevant content based on their needs and knowledge level.
Portfolio Analysis and Management
E*TRADE provides several tools to help investors analyze and manage their portfolios:
Portfolio Analyzer
This comprehensive tool evaluates your portfolio’s performance and composition:
- Asset allocation analysis
- Geographical distribution
- Sector exposure
- Performance benchmarking
- Risk assessment
- Fee analysis
- Dividend income tracking
Tax Management Tools
E*TRADE offers several features to help with tax-efficient investing:
- Tax lot identification method selection
- Realized gain/loss reporting
- Year-end tax statement organization
- Cost basis tracking
- Wash sale identification
Automatic Investing
For long-term investors, E*TRADE provides automatic investment options:
- Recurring deposits into brokerage accounts
- Dividend reinvestment plans (DRIPs)
- Systematic investment into mutual funds and ETFs
- Dollar-cost averaging facilitation
Core Portfolios (Robo-Advisory Service)
E*TRADE’s automated investing solution, Core Portfolios, offers professionally managed portfolios for hands-off investors:
How It Works
- Complete a risk profile questionnaire
- Receive a recommended portfolio of ETFs based on your goals and risk tolerance
- Fund your account ($500 minimum)
- Portfolio is automatically managed and rebalanced
Key Features
- 0.30% annual advisory fee (lower than many competing robo-advisors)
- Diversified ETF portfolios across various asset classes
- Smart Beta and Socially Responsible investing options
- Automatic rebalancing when allocations drift beyond thresholds
- Tax-loss harvesting for taxable accounts
- Portfolio personalization based on your preferences
- Regular portfolio reviews with adjustment recommendations
Core Portfolios is ideal for beginners or investors who prefer a hands-off approach while benefiting from professional portfolio management at a relatively low cost.
Customer Service and Support
E*TRADE offers comprehensive customer support through multiple channels:
Support Options
- 24/7 Phone Support: Available around the clock for trading and general account assistance
- Live Chat: Available during extended business hours
- Email Support: Typically responds within 24 hours
- Physical Branches: 30 branches nationwide for in-person assistance
- Virtual Appointments: Schedule video conferences with financial consultants
For more complex needs, E*TRADE offers access to:
- Financial Consultants: Personalized guidance for investors with $25,000+ in assets
- Active Trader Team: Specialized support for high-volume traders
- Wealth Management Services: Comprehensive advisory services for high-net-worth clients (typically $250,000+ in assets)
Pros and Cons of E*TRADE
Pros
- Commission-free stock, ETF, and options trading Powerful trading platforms for all experience levels Comprehensive research and educational resources Strong mobile apps with robust functionality Access to over 4,400 no-transaction-fee mutual funds 24/7 customer support via phone Physical branches for in-person assistance Integration with Morgan Stanley research Advanced options trading tools Paper trading for strategy testing
Cons
- Higher options contract fees than some competitors $250,000 balance requirement for E*TRADE Pro (or 30+ trades per quarter) Higher margin rates compared to some online brokers Limited cryptocurrency trading options More complex interface than some beginner-focused platforms Core Portfolios fee (0.30%) higher than some competing robo-advisors International trading limited compared to some specialized brokers $19.99 fee for transaction-fee mutual funds Limited forex trading capabilities Browser-based platform occasionally experiences performance issues
Who Should Use E*TRADE?
E*TRADE is particularly well-suited for specific types of investors:
Ideal for Options Traders
Great for Long-Term Investors
Valuable for Investors Seeking Education
E*TRADE vs. Competitors
How does E*TRADE stack up against other popular online brokers?
| Feature | E<em>TRADE | TD Ameritrade | Charles Schwab | Fidelity |
|---|
Security and Account Protection
E*TRADE implements robust security measures to protect client accounts and information:
Security Features
- Two-factor authentication (2FA): Additional verification beyond passwords
- Encryption: Industry-standard encryption for data transmission and storage
- Automatic logout: Sessions expire after periods of inactivity
- Security alerts: Notifications for suspicious account activity
- Fraud detection: Algorithms to identify potentially unauthorized transactions
- Biometric login: Fingerprint and facial recognition for mobile app access
- Account monitoring: 24/7 surveillance for suspicious activity
Account Protection
E*TRADE accounts benefit from multiple layers of protection:
- SIPC Coverage: Protection up to $500,000 (including $250,000 for cash claims) against brokerage failure
- Additional Insurance: E*TRADE provides additional coverage beyond SIPC limits through London insurers
- FDIC Insurance: Banking products are FDIC-insured up to $250,000 per depositor
- Fraud Protection: $0 liability guarantee for unauthorized use of E*TRADE accounts when promptly reported
How to Open an E*TRADE Account
Opening an E*TRADE account is a straightforward process that can be completed online in about 10-15 minutes:
- Visit the E*TRADE website or download the mobile app
- Select account type: Choose from individual brokerage, joint account, IRA, etc.
- Provide personal information:
- Name, address, phone number, email
- Social Security number or tax ID
- Employment information
- Financial information (income, net worth, investment experience)
- Choose account features:
- Margin capabilities (optional)
- Options trading level (requires approval)
- Dividend reinvestment preferences
- Fund your account:
- Electronic bank transfer (fastest method)
- Wire transfer
- Check deposit
- Account transfer from another institution
- Verify your identity: E*TRADE will verify your identity through electronic means; additional documentation may be required in some cases
- Download trading platforms: Install Power E*TRADE or mobile apps to begin trading
Most accounts are approved almost instantly, though certain account types or features may require additional review time.
Frequently Asked Questions
Is E<em>TRADE good for beginners?
Yes, ETRADE is well-suited for beginners despite its advanced features. The standard web platform provides an intuitive interface with basic trading capabilities, while the extensive educational resources help new investors build knowledge. The Core Portfolios robo-advisor ($500 minimum) offers a completely managed option for beginners who prefer a hands-off approach. Additionally, E*TRADE’s customer service is available 24/7 to answer questions, and the Knowledge Center provides structured learning paths for those new to investing. However, complete beginners with very small amounts to invest might find platforms with fractional shares more accessible for starting with limited capital.
How does E<em>TRADE make money with commission-free trading?
ETRADE generates revenue through multiple channels despite offering commission-free stock and ETF trades. Primary revenue sources include: 1) Interest margin from cash balances and margin lending, 2) Payment for order flow from market makers, 3) Fees from other services like options contracts ($0.65 per contract), futures trading, certain mutual funds, and managed portfolios, 4) Foreign exchange fees on international transactions, 5) Account service fees for specialized actions like outgoing wire transfers, and 6) Net interest income from banking products. This diversified revenue model allows E*TRADE to offer commission-free trading on many products while maintaining profitability.
What is the difference between E<em>TRADE and Power E</em>TRADE?
ETRADE refers to the standard web platform and overall brokerage service, while Power ETRADE is an advanced trading platform designed for more active traders. The standard ETRADE platform offers basic trading capabilities, research, and account management suitable for casual investors. Power ETRADE provides enhanced features including advanced charting with over 100 technical studies, options strategy tools, risk/reward analysis, paper trading, and pattern recognition technology. Power ETRADE is available to all customers at no additional cost, while the even more advanced ETRADE Pro platform requires either maintaining a $250,000 balance or executing at least 30 trades per quarter. Each platform has its own corresponding mobile app with similar feature differentiation.
Does E<em>TRADE offer fractional shares?
ETRADE offers limited fractional share capabilities through dividend reinvestment plans (DRIPs) and their Core Portfolios robo-advisor service. However, unlike some competitors, E*TRADE does not currently offer direct purchase of fractional shares for stocks and ETFs through regular trading. This means investors must purchase whole shares when directly buying individual stocks and ETFs. For investors with limited capital who want to build diversified portfolios of individual stocks through fractional investing, other platforms like Fidelity, Robinhood, or Schwab might be more suitable options.
How does E<em>TRADE’s acquisition by Morgan Stanley affect customers?
Morgan Stanley’s acquisition of ETRADE in 2020 has generally benefited customers through enhanced research, expanded services, and continued platform investment. Specific impacts include: 1) Access to Morgan Stanley’s premium research and analysis, 2) Enhanced wealth management offerings for high-net-worth clients, 3) Stronger financial backing and stability, 4) Continued operation as a distinct brand with its existing platforms and fee structure, and 5) Ongoing technology investments and feature improvements. While there have been some integrations, ETRADE has maintained its core identity and services. The acquisition has not resulted in significant negative changes for existing ETRADE customers, and in many ways has enhanced the overall value proposition through additional resources and capabilities.
Final Verdict: Is E*TRADE Worth It in 2025?
After thorough evaluation, E*TRADE earns our strong recommendation as a versatile and powerful brokerage suitable for investors across the experience spectrum.
E*TRADE
ETRADE successfully balances the needs of different investor types, from beginners to sophisticated active traders. The standard platform provides an intuitive experience for casual investors, while Power ETRADE and E*TRADE Pro deliver the advanced tools that active traders demand. This tiered approach ensures the platform can grow with you as your skills and needs evolve.
The brokerage particularly excels in options trading tools, research capabilities, and educational resources. The integration with Morgan Stanley has further enhanced its research offerings without compromising the platform’s identity or increasing costs to customers. For investors who value robust tools and comprehensive support, these strengths may outweigh the slightly higher options contract fees compared to some discount brokers.
While no platform is perfect for every investor, ETRADE’s combination of powerful features, reasonable costs, and excellent support makes it a top-tier choice for most investment needs. Whether you’re building a long-term retirement portfolio, actively trading options, or somewhere in between, ETRADE provides the tools and resources to help you succeed.
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