E*TRADE Review 2025: Pros, Cons and How It Compares
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Our Take
4.3
E*TRADE has long been one of the most popular online brokers. The company's $0 commissions and strong trading platforms appeal to active traders, while less experienced investors benefit from a large library of educational resources.
Fees
$0
per trade. Other fees apply.
Account minimum
$0
Fees
$0
per trade. Other fees apply.
Account minimum
$0
Promotion
Get up to $1,000
when you open and fund an E*TRADE brokerage account. Terms apply.
Show details
Pros & Cons
Commission-free stock, options and ETF trades.
Easy-to-use tools.
Strong customer support.
Volume discount on options contract fees.
Website can be difficult to navigate.
Low interest rate on uninvested cash.
No fractional shares.
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Full Review
Why trust NerdWallet's reviews: Read our methodology
Over 60 investment account providers reviewed and rated by our expert Nerds.
More than 50 years of combined experience writing about finance and investing.
Hands-on testing of the account funding process, provider websites and trading platforms.
Dozens of objective ratings rubrics and strict guidelines to maintain editorial integrity.
How do we review brokers?
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgments on which ones will best meet your needs. Our highest priority is maintaining editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).
For more details about the categories considered when rating brokers and our process, read our full methodology.
Where E*TRADE shines
An advanced platform and app: The E*TRADE Web platform and the mobile app offer real-time quotes and market commentary, stock and exchange-traded fund screeners and a good deal of account management. More active traders can turn to the Power E*TRADE platform and app to get technical studies, drawing tools, customizable options chain views, trading ladders and other features for complex strategies.
Tradable securities: E*TRADE offers a wide range of investment choices, from stocks, bonds, ETFs and more than 6,000 no-transaction-fee mutual funds, to futures and advanced options strategies.
Educational resources and support: The educational resources and support options on offer from E*TRADE are some of the best. You can watch webinars on diversification and technical analyses as well as on more-complex topics like options trading. There are online investing courses that cover a host of topics, and a thematic investing section covering how to invest in companies that align with your values.
Where E*TRADE falls short
Website transparency: Our testers examined E*TRADE's website and were unable to easily find the company's guidance on how to close an account, which should be readily available.
Default sweep interest rate: Ranging from 0.01% to 0.15%, E*TRADE's interest rate on uninvested cash is among the lowest of all brokers we review.
Alternatives to consider:
For a high interest rate on uninvested cash: Fidelity
What type of investor should choose E*TRADE?
Intermediate traders: Intermediate traders will benefit from lots of educational materials and excellent trading platforms.
Active traders: Active traders will love the research and charting tools E*TRADE offers.
Options traders: Options traders with 30 trades or more per quarter get a discount ($0.50 instead of $0.65 per trade).
What the Nerds think 🤓
E*TRADE at a glance
Account minimum | $0 |
Stock trading costs | $0 |
Options trades | $0.65 per contract (volume discount available) |
Account fees (annual, transfer, closing, inactivity) | Annual fee: $0 Inactivity fee: $0 Outgoing transfer fee (partial or full): $75 |
Interest rate on uninvested cash | 0.01% to 0.15% |
Number of no-transaction-fee mutual funds | Over 6,000 |
Tradable securities | Stocks, mutual funds, ETFs, options, bonds, futures |
Trading platform | Two: E*TRADE and Power E*TRADE |
Mobile app | Available for iOS and Android |
Research and data | Nine research providers, including Moodys, Refinitiv, Morningstar, MarketEdge and Smart Consensus |
Customer support options (includes how easy it is to find key details on the website) | 24/7 phone support; live chat Monday through Friday, 8:00 a.m. to 8:00 p.m. Eastern. |
How to sign up for an E*TRADE account
Opening an account at E*TRADE can be done completely online, and the broker says the process takes just 10 minutes (though we found it takes closer to 20). Investors who don't want to complete the application online can also call E*TRADE directly or mail in an application.
You'll select an account type — taxable or retirement, such as an IRA — and fill out some personal information, including your name, contact information and select financial details. Once the account is approved, you can fund it by transferring money from your existing investment or bank account. E*TRADE says the transfer process can take up to six days.
Keep in mind that depositing money into your account does not mean you're invested; once your account is funded, you'll need to select investments.
What to know about E*TRADE's fees
With E*TRADE you can trade stocks, options and ETFs commission-free. You'll still pay a fee to trade certain securities, including futures, as well as a per-contract fee of $0.65. for options trading. E*TRADE offers a discounted options contract fee of $0.50 for active traders (defined as those who trade 30 or more times per quarter).
E*TRADE charges no annual or inactivity fee. There is a $75 fee to fully or partially transfer assets out of your account.
E*TRADE’s analysts regularly update a list of highlighted mutual funds called the All-Star Funds Report with the top no-load funds and ETFs offered.
E*TRADE's trading platforms and apps
E*TRADE has two trading platforms — E*TRADE Web and Power E*TRADE. Both are free and available to all customers, with no trade activity or balance minimums.
E*TRADE Web offers free streaming market data, free real-time quotes, live market commentary, analyst research stock screeners and more. From the dashboard, you can track your accounts, create watch lists, view market data and make trades, including complex options strategies.
And for truly active traders, there's Power E*TRADE. The web platform offers real-time data, more than 100 technical studies, streamlined trade tickets, customizable options chain views and trading ladders.
The Power E*TRADE app offers many capabilities on the go: Traders can access the customizable options chain, a selection of popular technical studies, charts, streaming quotes and news. The app can be used for trading complex strategies, including four-legged option spreads, and futures traders can enter futures orders directly from the futures ladder.
E*TRADE has two free mobile apps, available for iOS and Android. The E*TRADE mobile app allows you to easily manage your account, place trades and get real-time quotes and news, including Bloomberg TV. It offers advanced mobile features like stock and ETF screeners, as well as multi-leg options trades. The E*TRADE app is available for Apple Watch as well.
How we nerd out testing trading platforms
Our reviewers — who are writers and editors on NerdWallet’s content team — test every online broker platform in our analysis hands-on. That way, we can report on every aspect of the user experience, from funding a new account to placing trades.
We score each broker against criteria that factor in the capabilities offered and the actual user experience of trading with those capabilities. This includes how easy it was to sign up for and fund a new account. Note that a broker may score very highly for the platforms it offers but low for the experience of actually using that platform. Our analysis scores these criteria separately and weighs them evenly when factored into the broker’s overall score. As a result, a broker can offer an advanced trading platform. Still, if it is clunky to use or the process of opening an account is unnecessarily arduous, their score will reflect that.
E*TRADE's investment selection
E*TRADE allows investors to trade stocks, mutual funds, ETFs, options and futures. Its bond offerings include U.S. Treasurys, U.S. Treasury Auctions, Agencies, Municipals, Corporates and Brokered CDs.
The company does not offer forex trading or cryptocurrency. It also does not offer fractional shares of stocks unless you're buying them as part of E*TRADE's automated investing program.
Fractional shares have become common in the industry; they let investors purchase stock based on a dollar amount they select rather than the price of a whole share. This may be particularly advantageous for investors who are working with limited money, but want to build a highly diversified portfolio.
» Check out the best brokers for fractional shares
E*TRADE offers its customers the ability to buy into IPOs, and it does offer over-the-counter trading, though at a higher price than some competitors. Commissions on OTC trades start at $6.95 and go down to $4.95 for frequent traders.
Other key E*TRADE features
Research and data
E*TRADE's analytical tools are user-friendly for both retirement investors and active traders, and they're available free of charge. E*TRADE's lineup of research offerings include Moody’s, Morgan Stanley, MarketEdge, Morningstar and more.
Execution quality
E*TRADE says its execution quality is 96.18% for S&P 500 stocks and 95.88% for equities outside of the S&P 500.
Nerdy Tip
The average execution quality of all brokers we review was 96.95% as of Oct. 16, 2024. That means 96.95% of orders sold for at a price that was at or better than the National Best Bid and Offer. Executing at or above the NBBO means you may receive a price improvement or a better share price than you were originally quoted.
Users should also note that E*TRADE accepts payment for order flow, which can potentially incentivize brokers to route orders to market makers based on how much they'll make — rather than the best price for the investor. But many other online brokers do this as well.
IRA account
E*TRADE offers both Roth and traditional IRAs, which are tax-advantaged retirement accounts. Experts typically recommend investing for retirement in a tax-advantaged account, which will allow you to get a tax deduction on your contributions or take money out in retirement without paying taxes. You can have an IRA in addition to other investment accounts, like a brokerage account.
Fees
$0
per trade. Other fees apply.Account minimum
$0
Promotion
Get up to $10,000
when you open and fund a new eligible E*TRADE retirement account. Terms apply.Retirement investors will find a lot to love about E*TRADE from Morgan Stanley's IRA offering, which offers no fees for stock and ETF trades, a large line-up of no-trading-fee mutual funds and an extensive library of retirement advice and tools.
Good to know about E*TRADE
Low interest rate on uninvested cash
Don't count on getting much of a return on the cash that accumulates or remains uninvested in your brokerage account. Interest rates range from 0.01% to 0.15% — well below the rates offered by high-ranking competitors.
Is E*TRADE safe?
E*TRADE is FDIC-insured, meaning bank accounts are insured to up to $250,000 per depositer and Premium Savings Accounts are insured up to $500,000 per depositer. E*TRADE accounts are also protected by the SIPC, which covers investment accounts up to $500,000 ($250,000 for cash only). SIPC insurance does not cover investment losses.
Is E*TRADE right for you?
E*TRADE’s investing tools, educational resources, large selection of no-transaction-fee mutual funds and innovative trading technology will suit all types of investors. Active traders will love the $0 commissions, and less-experienced investors will easily get up to speed with the company's deep educational resources.