E*TRADE is an online investment platform offering an array of low-cost brokerage, investing, retirement, and banking services.
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| Feature | Insider rating (out of 5) |
| Fees | 4.50 |
| Investment selection | 4.75 |
| Access | 4.15 |
| Ethics | 3.00 |
| Customer service | 4.00 |
| Overall score | 4.11 |
E*TRADE is a financial services firm providing online brokerage, retirement and investing services for retail investors and traders. The brokerage offers IRAs, brokerage accounts, small business retirement accounts, managed portfolios, automated portfolios, and more.
The brokerage is a great choice for mutual funds, as it offers more than 4,400 transaction fee-free funds. But you'll need at least $500 for robo-advice, and its 0.30% robo-advisory fee isn't as competitive as similar platforms.
E*TRADE's mobile app is available on iOS and Android devices.
E*Trade | TD Ameritrade |
Min. Investment $0 ($500 Core Portfolios) | Min. Investment $0 ($5,000 for Schwab Intelligent Portfolios and $25,000 for Schwab Intelligent Portfolios Premium) |
Fees 0% (0.30% Core Portfolios) | Fees 0% ($300 one-time planning fee and $30/month for Schwab Intelligent Portfolios Premium) |
Investment choices Stocks, ETFs, bonds, options, mutual funds, futures, and CDs | Investment choices Stocks, ETFs, options, mutual funds, futures, forex, cryptocurrencies, IPOs, and bonds |
Both E*TRADE and TD Ameritrade are best for all types of investors since each brokerage offers a wide selection of self-directed brokerage accounts, managed accounts, IRAs, and other wealth-building products.
However, TD Ameritrade no longer offers its managed accounts to new customers (due to the Schwab acquisition), but E*TRADE still allows new clients to sign up for its Core Portfolios automated account. You'll have to set up an automated account through Charles Schwab if you choose to open an TD Ameritrade account.
E*Trade | Betterment |
Min. Investment $0 ($500 Core Portfolios) | Min. Investment $0 to open ($10 to start investing), $100,000 (premium Investing) |
Fees 0% (0.30% Core Portfolios) | Fees 0.25% (Digital Investing) 0.40% (Premium Investing) |
Investment choices Stocks, ETFs, bonds, options, mutual funds, futures, and CDs | Investment choices Stock ETFs and bond ETFs |
If you're solely set on automated advice, Betterment could be an even better (and less expensive) option. Not only does its digital plan have a $0 minimum requirement and 0.25% fee, it also offers socially responsible portfolios, crypto portfolios, and multiple other portfolio options.
E*TRADE caters to more types of investors, though, since it gives you a wider range of account options and investment types to choose from. You'll be limited to automated investing with Betterment.
With an E*TRADE self-directed brokerage account, you can trade without any account minimums or commissions. And the brokerage provides three free trading platforms: Power E*TRADE, E*TRADE Web, and E*TRADE Pro. You'll also have access to a wide selection of stocks, mutual funds, exchange-traded funds, futures, options, bonds, and certificates of deposit (CDs).
E*TRADE offers roughly 9,000 mutual funds — more than 4,400 of which are no-load, transaction-free mutual funds. (No-load mutual funds are mutual funds that come without sales charges or commissions.)
And most of the brokerage's investments — except for bonds, futures contracts, and options contracts — come without fees. But bonds will cost you $1 per online secondary trade, and E*TRADE charges $0.65 per options contract ($0.50 if you make 30 trades per quarter). Futures contracts are $1.50 per contract.
E*TRADE also gives minors investing access through its custodial brokerage accounts. Parents or designated custodians can manage these accounts, and they come with $0 commissions, tax advantages, and investment education tools.
If you're a passive investor or fan of automated advice, E*TRADE's Core Portfolios could be right for you. These accounts — though more expensive than the standard brokerage accounts — provide personalized and automated portfolio management.
For instance, E*TRADE offers specialized portfolios for goals such as wealth-building, retirement-saving, or buying a home. You'll need at least $500 to set up the account, and you'll pay an asset-based annual fee of 0.30%.
As for account type eligibility, individual, joint and custodial brokerage accounts qualify for Core Portfolios. Rollover IRAs, Traditional IRAs, Roth IRAs, and SEP IRAs are also eligible.
You can also adjust your risk tolerance — and add or remove specific investing focuses — at any time.
If professional advice from human advisors sounds good to you, then E*TRADE's managed portfolios might just suffice. E*TRADE offers three fully managed portfolios: Blend Portfolios, Dedicated Portfolios, and Fixed Income Portfolios. Each account allows you access to financial consultants who tailor your portfolio to your specific preferences and goals, but the minimum account size requirements differ. Account minimums for these portfolios range from $25,000 to $250,000. Learn more about its managed accounts here.
E*TRADE additionally offers Prebuilt Portfolios of mutual funds or exchange-traded funds. These portfolios come without commissions, and they employ conservative, moderate, and aggressive investment strategies. To set up the account, you'll need a minimum of $500 for mutual funds, or $2,500 for exchange-traded funds.
E*TRADE also provides retirement savings accounts for its users. You can take advantage of several IRAs, or even roll over your 401(k) or employer-sponsored retirement plan. E*TRADE also offers the option to open retirement accounts online, by phone, or by mail.
Its retirement accounts include the following: rollover IRAs, Roth IRAs, traditional IRAs, beneficiary IRAs, E*TRADE Complete IRAs, and IRAs for Minors.
The E*TRADE ESA allows you to set aside funds for your child for kindergarten through graduate school. You can make annual contributions of up to $2,000 with the account, and you can also use federal tax-free withdrawals on qualified education expenses.
You can sign up for this account as long as your income is below $110,000 (for single filers) or $220,000 (joint filers).
E*TRADE's services are available to active and passive investors, registered investment advisors (RIAs), stock plan participants, and stock plan administrators.
When it comes to RIAs, E*TRADE serves these professionals two ways — through Liberty, its custodial platform, and the E*TRADE Advisor Network. The Liberty platform allows advisors to manage clients' accounts, and the E*TRADE Advisor network uses referrals to connect independent advisors with prospective clients.
Personal Finance Insider factors in Better Business Bureau ratings when assigning "ethics" ratings, and the Better Business Bureau has given E*TRADE an F in trustworthiness. While it doesn't offer an explicit reason for the rating, E*TRADE's BBB profile indicates that it has 19 unresolved complaints at this time.
However, the bureau also says on its website that its ratings don't guarantee a company's performance or reliability, so it's best to do your own research as well.
Earlier in 2021, E*TRADE — along with Robinhood, Webull, and TD Ameritrade — restricted trades on Gamestop (GME) and AMC Entertainment (AMC). These were two stocks that saw significant share price surges after members of a Reddit forum known as r/WallStreetBets collaborated to drive up the share prices. But like Robinhood and the others, the investment app eventually lifted its trading restrictions on the stocks.
Back in April of 2020, E*TRADE also faced several class-action lawsuits after US oil investment prices fell into the negatives. Oil investors experienced severe losses and sued E*TRADE on charges of failing to provide adequate disclosures of the risk in trading oil investments. The charges were later dismissed.
E*TRADE offers both DIY accounts and automated accounts, with an array of educational resources and market insights for users. The brokerage is a good option for beginners.
E*TRADE isn't entirely free, but it offers several fee-free investment options. These include no-transaction-fee mutual funds and commission-free stock, ETF, and options trading.
You'll need at least $25,000 to participate in pattern day trading.
