E-Trade: Know the Fees You Pay

Investing

etrade

E-Trade is a popular online broker for a reason: The company offers several trade platforms, a wealth of research and educational tools and a large selection of commission-free ETFs and transaction-fee free mutual funds. Its commission structure is tiered, but easy to navigate, and favors traders who make at least 1,500 trades per quarter.

Things to know about E-Trade’s fees

  • E-Trade’s tiered commission structure offers discounted rates to frequent traders. Those who trade at least 1,500 times per quarter qualify for $6.99 commissions; those who make 150 trades per quarter qualify for $7.99 commissions. For fewer than 150 trades, commissions are $9.99.
  • Even commissions for active traders are higher than those at many other brokerages, including full-service and discount brokers. E-Trade does offer a large selection of transaction-fee-free mutual funds and commission-free ETFs, generally not available from discount brokers.
  • E-Trade’s Pro trading platform is available only to customers who maintain at least a $250,000 account balance or execute at least 30 stock or options trades per quarter.
  • There are no minimum trade requirements or inactivity fees.
  • The company’s account minimum is $500 for brokerage accounts and $0 for IRA accounts.

Here’s a complete overview of the online broker’s commission and fee structure:

Service Fee Notes
Stock commission $9.99 for fewer than 150 trades per quarter
$7.99 for 150 to 1,499 trades per quarter
$6.99 for 1,500 and more trades per quarter
ETF commission $9.99 for fewer than 150 trades per quarter
$7.99 for 150 to 1,499 trades per quarter
$6.99 for 1,500 and more trades per quarter
More than 100 commission-free ETFs
Commission-free ETF short-term trading fee $19.99; $15.99 for customers who place 150+ stock and options trades per quarter 30-day holding period
Mutual funds Transaction-fee: $19.99
Load funds: Load listed in prospectus
More than 1,300 no-transaction fee mutual funds
Mutual fund short-term redemption fee $49.99 90-day holding period, charged on redemptions or exchanges of no-load, no transaction fee funds
Options Tiered commission, plus $0.75 per contract
Options exercises and assignments $19.99
Futures $2.99 per contract, per side Plus exchange and regulatory fees
Margin rates Base rate is 4.14%, rates range from 3.89% to 8.44%
Broker-assisted trades $25 plus applicable commission
Extended-hours trading $0.005 per share
Paper statements $2, free for E-Trade Pro Elite customers Electronic statements are free
Outbound full account transfer $60
Outbound partial account transfer $25

Arielle O’Shea is a staff writer at NerdWallet, a personal finance website. Email: aoshea@nerdwallet.com. Twitter: @arioshea.

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