E*TRADE Review 2021: Pros, Cons and How It Compares

E*TRADE excels even outside of its $0 commissions, with superb educational resources, portfolio-building tools and a large mutual fund selection.
Kevin VoigtAug 14, 2021

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Our Take

4.5

NerdWallet rating 

The bottom line: 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 beginner investors benefit from a large library of educational resources.

E*TRADE

on E*TRADE's website

on E*TRADE's website

Fees

$0

per trade

Account Minimum

$0

Promotion

Get $600 or more

when you open and fund an E*TRADE account with code: BONUS21

Pros & Cons

Pros

  • Easy-to-use tools.
  • Large investment selection.
  • Excellent customer support.
  • Access to extensive research.
  • Advanced mobile app.
  • Commission-free stock, options and ETF trades.

Cons

  • Website can be difficult to navigate.

Compare to Similar Brokers

E*TRADE
SoFi Active Investing
TD Ameritrade
NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Fees

$0

per trade

Fees

$0

per trade

Fees

$0

per trade

Account Minimum

$0

Account Minimum

$0

Account Minimum

$0

Promotion

Get $600 or more

when you open and fund an E*TRADE account with code: BONUS21

Promotion

$5 to $1,000

in free stock for users who sign up via mobile app

Promotion

None

no promotion available at this time

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Full Review

E*TRADE offers value to both beginner investors and frequent traders with a library of educational resources, professional-level trading platforms, and tools to help assemble a risk-appropriate, balanced portfolio. Active traders will appreciate the firm's $0 commission for all stock, ETF and options trades.

In October 2020, Morgan Stanley completed a $13 billion deal to purchase E*TRADE; the brokerage will continue to operate under the E*TRADE name and there are no changes to current prices, tools or offerings.

Trading platforms: 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 result of the company's acquisition of OptionsHouse several years ago. The web platform offers real-time data, more than 100 technical studies, over 30 drawing tools, streamlined trade tickets, customizable options chain views and trading ladders.

There are plenty of educational materials and demos on the E*TRADE website that let you peek at what each platform can do.

Free commissions: In 2019, E*TRADE dropped its once-high $6.95 trade commission to $0 for online stock, options and ETF trades. Options still carry a contract charge, but that was reduced to $0.65, with a discounted fee of $0.50 for active traders.

Mobile app: 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.

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.

Investment selection: E*TRADE offers a breadth of investment choices that will please active traders and retirement investors alike, including futures and advanced options strategies, as well as more than 4,500 no-transaction-fee mutual funds. That mutual fund lineup easily rivals those at other brokers. Mutual funds not on the no-fee list will cost $19.99 per transaction.

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.

Educational resources: E*TRADE is a great jumping off point for beginner investors, in part because of the educational resources it offers. Online, investors can view webinars on topics such as options trading, technical analysis and how to diversify a portfolio, and in-person events are regularly held at E*TRADE branches.

» New to investing? Check out our .

The company also offers online investing courses from independent investment research company Morningstar, covering everything from stocks 101 to how to build an emergency fund. A thematic investing section of the E*TRADE website includes advice for how to invest in companies that align with specific values, like gender diversity, clean energy and cybersecurity.

E*TRADE also has strong in-person customer service, with 30 branches staffed by financial consultants. Customer support is also available by phone, email and live chat 24/7.

If you'd rather skip learning and cede investment decisions to the experts, E*TRADE’s robo-advisor service, , will manage your portfolio for you for an annual advisory fee of 0.30%. The minimum investment for that service is $500. Robo-advisors are computer-based investment advisors who build and manage client investment portfolios.

» Interested in a robo-advisor? Here are our .

Website transparency: Part of our analysis includes how easily and quickly customers and potential customers can find key information on a broker's website; E*TRADE came up a bit short in this area. Our testers were unable to easily find the company's required account minimum or guidance on how to close an E*TRADE account once open, both of which should be readily available.

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 beginners will easily get up to speed with the company's deep educational resources.

For U.S. residents only.

on E*TRADE's website

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