E*TRADE

What is E*TRADE?

E*TRADE is a pioneering online brokerage platform that has been democratizing investing since 1982 when it became one of the first companies to offer electronic trading to individual investors. Founded by William Porter and Bernard Newcomb, E*TRADE revolutionized the financial industry by giving everyday investors direct access to stock markets without traditional broker intermediaries, fundamentally changing how Americans invest their money.

Now a subsidiary of Morgan Stanley following the 2020 acquisition for $13 billion, E*TRADE continues to provide comprehensive investment services including stock and options trading, mutual funds, ETFs, bonds, retirement accounts, managed portfolios, and banking services. The platform serves millions of retail investors and has processed trillions of dollars in trades since its founding.

E*TRADE distinguishes itself through its powerful combination of user-friendly interfaces for beginners and sophisticated tools for active traders. The platform offers extensive research resources, educational content, and professional-grade trading platforms like Power E*TRADE, making it suitable for investors at every experience level from first-time buyers to professional day traders.

Key Features

• Commission-Free Trading: Trade stocks, ETFs, and options with zero commissions on online trades, eliminating transaction costs for active investors.
• Power E*TRADE Platform: Advanced trading platform with real-time streaming data, customizable layouts, and professional-grade charting and analysis tools.
• Options Trading: Comprehensive options trading capabilities with sophisticated tools, strategy builders, and options analytics for derivatives traders.
• Managed Portfolios: Professional portfolio management services with automated rebalancing and personalized investment strategies based on goals.
• Research & Analysis: Access premium research from Morgan Stanley, third-party analysts, and in-house experts covering thousands of securities.
• Retirement Accounts: Full range of retirement accounts including Traditional IRA, Roth IRA, SEP IRA, and rollover services with planning tools.
• Banking Services: High-yield savings accounts, checking accounts, and lines of credit integrated with your investment accounts.
• Mobile Trading: Full-featured mobile apps for iOS and Android providing complete trading capabilities and account management on the go.
• Education Center: Comprehensive learning resources including articles, videos, webinars, and courses for investors at all levels.
• Real-Time Quotes: Streaming real-time market data, news, and price alerts to stay informed about market movements and portfolio changes.

Latest Updates

E*TRADE continues evolving its platform following the Morgan Stanley acquisition with enhanced features and integrations.

• Morgan Stanley Integration: Enhanced research capabilities with access to Morgan Stanley’s premium analyst reports and market insights.
• Updated Power E*TRADE: Redesigned advanced trading platform with improved charting, faster execution, and enhanced customization options.
• Expanded ETF Selection: Added commission-free access to hundreds more ETFs from leading providers for diversified investing.
• Improved Mobile Experience: Updated mobile apps with enhanced biometric security, faster performance, and streamlined trading workflows.
• Core Portfolios Enhancement: Upgraded robo-advisory service with more portfolio options and lower minimum investments.
• Options Analyzer Updates: Enhanced options trading tools with better probability calculators and risk analysis features.
• Cryptocurrency Access: Added ability to trade cryptocurrency through the platform for diversified digital asset exposure.
• Banking Rate Increases: Improved interest rates on savings and checking accounts to remain competitive in high-rate environment.

System Requirements

Web Browser

• Google Chrome (recommended, latest version)
• Mozilla Firefox (latest version)
• Safari 12 or later
• Microsoft Edge (Chromium-based)
• JavaScript and cookies enabled
• High-speed internet connection recommended

Power E*TRADE (Desktop)

• Windows 10 or later (64-bit)
• 4 GB RAM minimum (8 GB recommended)
• 1 GB available disk space
• 1280 x 800 minimum display resolution
• Broadband internet connection

iOS

• Operating System: iOS 14.0 or later
• Compatible with iPhone and iPad
• Storage: 250 MB available space
• Touch ID or Face ID supported

Android

• Operating System: Android 8.0 or later
• Storage: 200 MB available space
• RAM: 3 GB minimum recommended
• Fingerprint authentication supported

How to Install E*TRADE

Web Access

1. Navigate to etrade.com in your web browser
2. Click “Open an Account” to begin registration
3. Select account type (brokerage, retirement, etc.)
4. Provide personal information and Social Security number
5. Complete identity verification process
6. Fund your account via bank transfer or check
7. Set up login credentials and security questions
8. Begin trading once funds settle

iOS Installation

1. Open the App Store on your iOS device
2. Search for “E*TRADE: Invest. Trade. Save.”
3. Tap “Get” to download the free app
4. Open app and log in with existing credentials or create account
5. Enable biometric authentication for quick access
6. Configure push notifications for alerts
7. Set up watchlists and customize dashboard

Android Installation

1. Open Google Play Store
2. Search for “E*TRADE: Invest. Trade. Save.”
3. Tap “Install” to download
4. Open app and sign in or register
5. Complete identity verification if new account
6. Enable fingerprint login for security
7. Configure alerts and notification preferences

Power E*TRADE Desktop

1. Log in to your E*TRADE account on the web
2. Navigate to “Platforms” section
3. Download Power E*TRADE installer
4. Run installer and follow setup wizard
5. Log in with your E*TRADE credentials
6. Customize workspace and chart layouts
7. Configure streaming data and alerts

Pros and Cons

Pros

• Commission-Free Trading: Zero commissions on stocks, ETFs, and options base trades eliminates costs for active traders.
• Powerful Trading Platforms: Power E*TRADE offers professional-grade tools, real-time data, and advanced charting for serious traders.
• Morgan Stanley Research: Access to premium institutional research provides valuable insights for investment decisions.
• Comprehensive Services: Full-service platform offering trading, retirement accounts, banking, and managed portfolios in one place.
• Excellent Education: Extensive educational resources help investors at all levels improve their knowledge and skills.
• Options Expertise: Industry-leading options trading tools and education make it ideal for derivatives traders.
• Established Reputation: Decades of operation and Morgan Stanley backing provide stability and trustworthiness.

Cons

• No Fractional Shares: Cannot purchase fractional shares of stocks, requiring full share prices for investments.
• Complex Fee Structure: Some services and account types have fees that may confuse newer investors.
• Limited Cryptocurrency: Cryptocurrency trading options are more limited compared to dedicated crypto platforms.
• Higher Margin Rates: Margin interest rates are higher than some competitors for leveraged trading.
• Account Minimums: Some managed portfolio services require significant minimum investments to access.

E*TRADE vs Alternatives

Who Should Use E*TRADE?

E*TRADE is ideal for:

• Options Traders: Investors focused on options trading who need sophisticated tools, analysis capabilities, and educational resources.
• Active Traders: Frequent traders who benefit from Power E*TRADE’s professional-grade platform and real-time data feeds.
• Research-Driven Investors: Those who value comprehensive research and analysis tools to inform investment decisions.
• Full-Service Seekers: Investors wanting trading, banking, retirement, and managed portfolios from a single trusted provider.
• Long-Term Investors: People building retirement portfolios who appreciate the educational resources and planning tools available.
• Morgan Stanley Clients: Existing Morgan Stanley customers who can benefit from integrated services and research access.

E*TRADE may not be ideal for:

• Fractional Share Investors: Those who want to invest small amounts in expensive stocks need platforms offering fractional shares.
• Cryptocurrency Enthusiasts: Users primarily interested in trading various cryptocurrencies should consider dedicated crypto platforms.
• Cost-Conscious Beginners: New investors with very small accounts may find simpler, mobile-first platforms more approachable.
• International Investors: Non-US residents may find limited access to E*TRADE services and accounts.

Frequently Asked Questions

Is E*TRADE safe to use?

Yes, E*TRADE is one of the safest online brokerages. It’s regulated by the SEC and FINRA, and accounts are protected by SIPC insurance up to $500,000 (including $250,000 for cash). As a Morgan Stanley subsidiary, E*TRADE benefits from the financial strength of one of the world’s largest financial institutions. The platform uses advanced encryption and offers two-factor authentication.

What is the minimum to open an E*TRADE account?

E*TRADE has no minimum deposit requirement to open a standard brokerage account or IRA. You can open an account with $0 and fund it later. However, certain features like margin trading require minimum balances, and managed portfolio services like Core Portfolios require a $500 minimum investment to get started.

How does E*TRADE make money without commissions?

E*TRADE generates revenue through several channels including payment for order flow, interest on margin accounts and uninvested cash, fees for premium services and certain transactions, and revenue from banking products. The company also earns from options contract fees ($0.65 per contract) and various account service fees.

Can I transfer my existing investments to E*TRADE?

Yes, E*TRADE accepts transfers from other brokerages through the ACATS (Automated Customer Account Transfer Service) system. Most transfers complete within 5-7 business days. E*TRADE often offers promotional incentives for large account transfers, and the process can be initiated entirely online through your account dashboard.

What is Power E*TRADE?

Power E*TRADE is E*TRADE’s advanced trading platform designed for active and professional traders. It offers real-time streaming data, advanced charting with over 100 technical indicators, options analysis tools, customizable layouts, and faster trade execution. Power E*TRADE is available as a desktop application and through the mobile app at no additional cost to E*TRADE customers.

Final Verdict

E*TRADE remains one of the most respected and comprehensive online brokerages available, offering a powerful combination of trading tools, research resources, and financial services. The Morgan Stanley acquisition has enhanced the platform’s research capabilities while maintaining the user-friendly experience that made E*TRADE a pioneer in online investing.

The platform particularly excels for options traders and active investors who can take advantage of Power E*TRADE’s sophisticated tools and real-time data. The combination of commission-free trading, premium research access, and extensive educational resources makes it valuable for both learning investors and experienced traders looking to refine their strategies.

While the lack of fractional shares and limited cryptocurrency options may deter some users, E*TRADE’s strengths in traditional securities trading, retirement planning, and integrated banking make it an excellent choice for investors seeking a full-service platform. For those who value professional-grade tools backed by a trusted financial institution, E*TRADE delivers exceptional capability and deserves strong consideration as a primary brokerage.