eTrade Review & Rating 2022» Is eTrade Reliable or Scam?
eTrade is the first to pioneer online trading for retail investors. The birth of the internet was in the early 1980s, when a physicist and inventor created a method to make the trade on the internet for investors in retail. It was the first online transaction that was sent to an exchange. It opened the door for the majority of investors to manage their investment online, with no requirement of a broker.
eTrade is today a top online financial services company that provides a top-quality experience for the digitally-inclined trader or investor, backed by a personal, professional guide. The company also offers an advanced custody platform for advisors as well as the industry's most highly rated stock plan administration platform. In October 2020, Morgan Stanley took full acquisition of eTrade. In this eTrade Review article, we will explore more details about the broker. If you are looking for a broker, keep reading. It would be an unbiased article. AtoZ Markets is in no way responsible for any of the writer's opinions.
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Corporate Facts of eTrade
First Online Trade: 1983
Parent Company: eTrade Financial Holdings, LLC
IPO (Initial Public Offering): August 16, 1996
Employees: Approximately 4,100
Total Retail Branches: 30+ Across the United States of America
Morgan Stanley Acquisition: October 2020
How to Open Account With eTrade
You can open account an account with eTrade by online, by call and by mail.
To open an account online, you have to select account types. After that you need to fill the form for brokerage or bank account.
You can fund your account online or by sending mail.
To open an account over the phone, you have to call their number. Call at 800-ETRADE- (800-387-2331)
To open an account by mail, you have to download the application and print it. After filling out the form, send the application with a payable check to eTrade bank or Brokerage.
There are a variety of different products that you can trade through eTrade. The range of them is basic to the complicated. From short-term to long-term. The beginning to expert level. Here's an overview of the basics before you begin.
They give free stock analysis and screeners. Some Stocks Trading Features:
- Find market information and easy-to-read charts.
- Make use of our stock screening tools to find companies that can fit in your portfolio.
- Trade quickly and conveniently with this stock ticker site
For options trading, eTrade has simple tools that provide excellent value and service. Some of the features of options:
- One of the lowest options contract costs on the market.
- Simple-to-use platform and application to trade options on indexes, stocks and futures.
- Support from Options Specialists who are knowledgeable.
- Close short option positions are priced at 10C/or less, and with no contract fee
Some of features of Futures of eTrade
- Futures trading are available in brokerage and eligible IRAs
- You can trade futures listed on CME, ICE US, and CFE.
- Micro and E-mini contracts now available.
- eTrade gives support from licensed Futures Specialists.
Exchange Traded Funds (ETFs)
eTrade has lower cost ETFs. Some of the features of their ETFs are:
- A large number of equities Fixed income, basket of equities, or commodities.
- You can buy and sell fast just as stocks.
- 24/7 trading on a selected set of ETFs with a wide range of trading
eTrade has 4400+ No load, No Transaction Fee (NTF) Mutual Funds.
- With their Mutual Funds, you can diversity your investments
- Funds are managed by professionals.
- They follow specific market strategies.
Bonds and CDs
They also offer Bonds and CDs.
- eTrade Bonds and CDs contribute to diversification and potential income.
- It could help you mitigate the impact of market fluctuations on your portfolio.
- It also could provide an unpredictability and reliability revenue source for interest.
- You can have access to more than 50,000 offerings from more than 200 of the most reputable liquidity providers.
- You can have commission-free US Treasury and new issue bond
Pros and Cons of eTrade
Let's have a look of pros and cons of eTrade.
The pros of eTrade are:
- They have low trading fees ($0 commission for online US-listed stock, ETF, Mutual Funds and options trades.
- They have a user-friendly mobile trading platform.
- They have great research tools.
- They have a wide range of investment options.
- They have a very advanced mobile trading app.
- They have automated portfolio builder
The cons of eTrade are:
- Available for Only in the US
- They don't have a forex trading facility.
- Only bank transfer
- No access to international markets
- No Live Chat Option
Is eTrade Broker reliable?
eTrade started its online trading journey in 1983. It's one of the oldest investment and trading companies that has been around for over four decades. They offer more than a wide range of stocks, options, futures, mutual funds, and Bonds on their website, as well as advanced trading tools like stock charts and technical analysis indicators. Their platform is user-friendly and easy to navigate, making it an attractive option for both first-time investors and experienced investors. eTrade also offers 24/hour customer service in case you have any questions or run into any problems while using the site. Overall, eTrade is a reliable and trustworthy broker that can provide you with everything you need to start investing today.
Power eTrade Trading Platform
Power eTrade is an innovative platform with user-friendly, intuitive tools for options, stocks or futures trade. If you're a fan of monitoring the market and trading the markets, this platform is perfect for you.
It has tools for charting that automatically create charts that are populated using technical patterns as well as educational information
It is easy to understand the risks of the option trade in a glance
It has advanced charting for historical and intraday use with more than 100 studies with thirty drawing and drawing software and a myriad of chart types
It has risk analysis tools to assist you in translating the Greeks into simple English.
eTrade Trading Platform
eTrade is the first place to invest online and it remains one of the top. The tools that every investor or trader needs to investigate investments, keep track of the markets, trade and improve their abilities.
This platform has independent analyst news, research, quotes and charts.
It also had screeners and investing tools that find opportunities.
Two Mobile Platforms
eTrade has two mobile platforms. Power eTrade and eTrade App. The Power eTrade application is an easy-to-use and constantly evolving mobile platform for traders of all kinds.
The eTrade app is simple to use and lets you remain in touch with your broker accounts as well as markets wherever you go.
eTrade offers a wide variety of accounts with a lot of facilities. We will review some of them.
Standard Brokerage Accounts
If you have an eTrade brokerage self-directed account, you can trade without minimum account requirements or commissions. It also offers three trading platforms for free including Power eTrade, the eTrade Web platform, and the eTrade Pro. There's also access to a variety of mutual funds, stocks exchange-traded funds and options, as well as futures bonds, CDs. (CDs).
eTrade offers a range of 9000 mutual funds, over 4,400 of which are transaction-free, no-load mutual funds.
The majority of the brokerage services options -- with the exception for futures contracts, bonds and options contracts are free of charge. However, bonds cost $1 for each secondary trade you make online and eTrade costs $0.65 per option contract ($0.50 for 30 trades in a quarter). Futures contracts cost $1.50 for each contract.
eTrade has accounts for minors with investment access to their custodial brokerage accounts. Custodians or parents are able to manage these accounts and they're free of commissions, tax advantages as well as investment tools.
Core Portfolio Automated Accounts
Core Portfolio Automated Accounts are for those who like automated trading. These accounts , though more costly than standard brokerage accounts, offer an automated and personalized portfolio management.
For example, eTrade offers specialized portfolios to help you achieve goals like wealth building and retirement savings, or even purchasing a home. It's recommended to have at least $500 to establish the account. In addition, you'll be charged an annual asset-based fee of 0.30 percent.
Only Individual, joint and custodial brokerage accounts are eligible for Core Portfolios. Rollover IRAs, Traditional IRAs and Roth IRAs along with SEP IRAs can also be considered eligible.
You can adjust your risk tolerance and even remove or add specific investment focuses at any point.
eTrade also offers multiple retirement accounts to its clients. It is possible to take advantage of various IRAs and transfer the balance of your 401(k) or the retirement plan sponsored by your employer. eTrade also provides the option of opening a retirement account online via phone or mail.
Its retirement accounts comprise the following the following: rollover IRAs as well as Roth IRAs traditional IRAs and beneficiary IRAs eTrade Complete IRAs and IRAs for minors.
Coverdell ESA: Low-cost Education Savings
eTrade's Coverdell ESA allows you to save money to help your child through kindergarten to graduate school. It is possible to make annual contributions that can be up to $2,000 through the account. You can also take advantage of tax-free federal withdrawals for qualified educational expenses.
Small Business Retirement Accounts
eTrade also offers retirement accounts for small business employees. They have several types of retirement plans for them.
Individual and Roth Individual 401(k)- It's for self-employed people.
SIMPLE IRA- This retirement plan is for businesses that have less than 100 employees.
SEP IRA- It's for both self-employed and small businesses.
Profit-Sharing Plan- It's a plan where a company can share profits with its employees for their retirement.
Investment-Only Account- This account is for those businesses that have existing retirement plans.
eTrade Bank Accounts
eTrade also offers FDIC insured Bank accounts. It has multiple bank accounts.
Premium Savings Account- This bank account has FDIC insurance up to $1,250,000. There are no monthly fees and a minimum amount to open an account.
Max-Rate Checking- It's one of their checking accounts with competitive yields and many free features like free transfer, unlimited ATM fee refunds.
eTrade Checking- It's their basic checking account that has no monthly fees. It comes with free initial checks, free online bill pay and debit card.
eTrade Line of Credit- With this account, you can borrow money against your investments for your personal or business purposes without interrupting your investment plans.
Fees and Rate
eTrade has $0 commission for online US-listed stock, ETF, Mutual Funds and options trades. Exception may apply.
Options contract fee $0.50 to $0.65 per contract.
OTC Stocks trading commission is from $4.95 to $6.95.
Futures Contract commission $1.50 per contract. Cryptocurrency contract commission $2.50 per contract.
Margin rate for Stocks, Options and ETFs are from 5.45% to 8.95%.
Core Portfolio advisory fee is 0.30% annual. Blend Portfolio advisory fees are from 0.65% to 0.90%. Fixed Income Portfolio advisory fees are from 0.35% to 75%
To know more details about eTrade fees and rate click here.
eTrade offers good customer support. They have several different ways to contact them including email, phone and social media accounts on various platforms like Twitter and Facebook. They also host live events where you can ask questions in real time of their investment experts or other knowledgeable individuals that work at eTrade. Overall, they are a reliable company with many options for getting the help that you need as an investor.
Is eTrade Regulated?
eTrade is regulated by the SEC and FINRA. This means that they must adhere to a variety of rules and regulations in order to protect investors. eTrade is also a member of SIPC, which provides additional protection for your funds in the event that the company goes bankrupt. Overall, eTrade is a safe and reliable option when it comes to trading products online.
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Overall, eTrade is a great option for anyone looking to get started in the world of investing. You can trade stocks, options, mutual funds, Bonds and CDs, and ETFs through advanced trading platforms. They have many useful trading tools that allow you to make smart choices when it comes time for making trades. Plus, the platform is extremely user-friendly and easy to use. Their investment advice is also good for newbie. You can use the broker safely and securely.