This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
ETRADE, now part of Morgan Stanley, has been a leading online broker since 1982. Known for its two-platform approach — the beginner-friendly ETRADE web and the professional-grade Power E*TRADE desktop — it serves over 5 million accounts.
Fees
| Fee Type | Cost |
|---|---|
| Stock/ETF commission | $0 |
| Options | $0.65/contract (or $0.50 for 30+ trades/quarter) |
| Margin rate (up to $10K) | 10.45% |
| Margin rate ($250K-$500K) | 9.20% |
| Inactivity fee | $0 |
| Account minimum | $0 |
| Broker-assisted trades | $25 |
E*TRADE's options commission drops to $0.50 per contract for active traders, making it competitive for options volume.
Platform and tools
Power E*TRADE is the flagship desktop platform, offering streaming real-time data, advanced charting with 100+ technical studies, an options strategy builder with risk/reward visualisation, and a customizable dashboard. The web platform is simpler but still feature-rich, and the mobile app is well-rated.
E*TRADE's research integrates Morningstar, Thomson Reuters, and MarketEdge, providing analyst ratings, screeners, and portfolio analysis tools.
Product range
E*TRADE offers stocks, ETFs, options, futures, bonds, and over 4,400 no-transaction-fee mutual funds. Crypto is limited to Bitcoin and Ethereum futures. The robo-advisor (Core Portfolios) requires a $500 minimum.
Regulation and safety
E*TRADE is regulated by the SEC and FINRA, SIPC-insured up to $500,000, and backed by Morgan Stanley (NYSE: MS). Read the full safety analysis.
Pros and cons
Pros: Power E*TRADE platform, competitive options fees, strong research, Morgan Stanley backing, good mobile app.
Cons: Higher margin rates than IBKR, crypto limited to futures, Core Portfolios minimum of $500, no fractional shares.
Is E*TRADE right for you?
E*TRADE is a strong choice for options traders who want a capable platform without the complexity of TWS. It is also a good all-around broker for investors who value research. Active traders who need the lowest margin rates should look at Interactive Brokers.
Compare E*TRADE against TD Ameritrade in the head-to-head comparison. See the broker reviews hub for more options.
Common questions
What happened to E*TRADE after the Morgan Stanley acquisition? Morgan Stanley acquired ETRADE in 2020. ETRADE continues to operate under its own brand, and the acquisition added financial stability.
Does E*TRADE have an account minimum? No minimum to open a brokerage account. The Core Portfolios robo-advisor requires $500.
Is Power E*TRADE free? Yes, it is included with any E*TRADE brokerage account.