E*TRADE Online Brokerage Account Review & Sign-Up Bonus

E*TRADE is one of the oldest and best-known online stock brokers in the U.S. It offers a wide range of investing tools, resources, and features, making it a leading full-service and discount brokerage firm.

Now that E*TRADE has eliminated commissions on U.S.-listed stock, option, and ETF trades, it’s an especially solid choice for both active traders and long-term investors.

In this E*TRADE review, let’s take a look at the brokerage’s features to help you decide if it’s the right service for you.

E*TRADE Features

Open a Brokerage Account with E*TRADE

Additional Features

• E*TRADE Core Portfolios. If you’d rather “set it and forget it” with a robo advisor than DIY your investments, this service does the heavy lifting for you. (See more details below.)
• E*TRADE Web. This trading platform offers stock data, analysis, screeners, real-time quotes, and live commentary. E*TRADE Web gives users the same features and tools you’ll find on much more complicated and expensive trading platforms, for free, with no minimums required.
• Power E*TRADE. This platform is based on the old OptionsHouse service (E*TRADE purchased the platform in 2016). It’s ideal for more advanced, technical traders, especially those interested in futures and options. Futures and options traders can also use the free Power E*TRADE app to access most of the features on the go.
• Nearly 4,500 No-Fee Mutual Funds. E*TRADE offers users a huge selection of free mutual funds. Those not on the extensive list cost $19.99 per transaction.
• E*TRADE Bank. Want a one-stop-shop for your money needs? E*TRADE Bank offers high-yield savings and no-fee checking accounts.
• Morningstar Education. Thanks to its partnership with research firm Morningstar, E*TRADE offers a selection of courses for new investors.

What Is E*TRADE?

E*TRADE is a full-service brokerage offering investment options for investors of all types. The company has been around since 1991, when it offered trading services on America Online and Compuserve (remember them?).

Since then, E*TRADE has grown to have roughly 5 million brokerage accounts and nearly $350 billion in assets under management. That makes E*TRADE not only one of the oldest online brokerage services, but also one of the largest.

In October 2019, E*TRADE joined several online discount brokers to eliminate commissions on U.S.-listed stock, option, and ETF trades. In addition, there’s no minimum required to open or maintain a brokerage account.

You can use three trading platforms for free, including a robust platform for technical traders that E*TRADE acquired in 2016 when it bought OptionsHouse. However, the entry-level platform, E*TRADE Web, is simple enough for novice traders to understand.

E*TRADE also features a bank with a high-yield savings account and a no-fee basic checking account. There’s also a second checking account that pays interest. This account charges a fee, but if you maintain an average balance above $5,000, E*TRADE will waive it.

These banking features are great for people who like to keep all their finances under one roof, or at least minimize the number of websites and logins they need to manage.

How to Get Started with E*TRADE

Opening a new E*TRADE account is easy and should take only a few minutes.

As with all brokers and other financial institutions, new account holders must provide standard personal information, such as their name, address, Social Security number, employment information, and financial information.

Funding Your E*TRADE Account. You can fund your new account by electronically transferring money from another financial account, writing a check, initiating a wire transfer, or moving an existing account from another firm. You can also roll over an old 401(k).

Transferring Money. The free E*TRADE Transfer Money service lets you move money between E*TRADE accounts and from outside financial institutions. Your funds are 100% protected by the company’s Complete Protection Guarantee. Note that Transfer Money can take up to three business days before a transaction is completed.

How Does E*TRADE Work?

As mentioned above, E*TRADE offers three fee-free platforms to trade stocks, options, and other investment vehicles from your desktop or mobile device.

E*TRADE Web is the most basic platform. Using this service, you’ll have access to free real-time stock quotes, streaming market data, analysis and commentary, stock screeners, and lots more. You can use the platform to make trades, track your investments, and create watch lists for securities you’re exploring.

E*TRADE Mobile offers desktop trading power with the convenience of a smart-device app. You can use it to analyze, follow, and trade investments (including complicated options plays) on either your Apple or Android phone, Apple Watch, or tablet.

Power E*TRADE is based on the old OptionsHouse platform. It’s a powerful trading platform especially for options and futures traders, although advanced stock traders will find it useful too. You can use the service to create charts, examine trade probabilities, and analyze data with a robust set of tools. Power E*TRADE is also available as a mobile app.

Investment Options

E*TRADE offers a variety of investment options that should meet most individual investors’ needs. These include:

• stocks
• bonds
• mutual funds
• futures
• options
• exchange-traded funds (ETFs)
• CDs
• FOREX (foreign currencies)

You can open various investing accounts, including standard taxable accounts and fee-free, tax-advantaged IRAs.

E*TRADE Core Portfolios

Picking and executing your own trades can easily become a part-time job. If you’d rather not DIY, E*TRADE now offers its Core Portfolios service. Essentially, this product is a robo-advisor that uses computer algorithms to create and maintain a portfolio suited to your risk tolerance and goals.

With Core Portfolios, E*TRADE will invest your portfolio in stock and bond ETFs. However, you can direct the service to select socially responsible funds if you like. These represent companies that have chosen ethical approaches, such as renewable energy and fair treatment of workers.

Each Core Portfolios account will also include a cash allocation of roughly 1%.

To open a Core Portfolios account, you must deposit at least $500. Although E*TRADE’s brokerage services are free, Core Portfolios charges a 0.30% annual fee. This is slightly higher than the 0.25% charged by top robo advisors Betterment and Wealthfront.

Rival brokerage Ally Invest also charges no fees and requires only a $100 minimum for its robo advisor product, the Cash Enhanced Managed Portfolio. However, as the name implies, it maintains a large 30% cash buffer, for better or worse.

You can find a complete review of Core Portfolios here.

Pricing

E*TRADE has always been considered a discount online broker. However, in October 2019, the company and a list of other top online brokerages announced it was eliminating commissions for U.S. exchange-based stock, option, and ETF trades.

You’ll still pay 65 cents per contract if you’re an options trader. However, if you make more than 30 trades per quarter, that amount will be reduced to 50 cents.

E*TRADE offers nearly 4,500 fee-free mutual funds. However, if you want to trade a fund not on that list, the per-trade fee is $19.99.

As stated above, the Core Portfolios robo advisor service costs 0.30% annually.

There’s no minimum to open a brokerage account. However, note that Core Portfolios accounts require $500 to participate.

E*TRADE iPhone, Apple Watch, Tablet, and Android Apps

E*TRADE offers two mobile apps. The basic E*TRADE Mobile app offers most of what you can find on the E*TRADE Web platform. The Power E*TRADE app was built specifically for options and futures traders.

E*TRADE Pros & Cons

Current E*TRADE Promotions – Up to $2,500 Cash Bonus

Like many brokerage firms, E*TRADE offers a cash bonus.

New E*TRADE customers who open a new, non-retirement brokerage account and fund it within 60 days of account opening may be eligible to receive the following bonuses:

• Deposit: $5,000 – $24,999 – ($100 cash bonus)
• Deposit: $25,000 – $99,999 – ($200 cash bonus)
• Deposit: $100,000 – $249,999 – ($300 cash bonus)
• Deposit: $250,000 – $499,999 – ($600 cash bonus)
• Deposit: $500,000 – $999,999 – ($1,200 cash bonus)
• Deposit: $1,00,000 or more – ($2,500 cash bonus)

Securities or funds (minus any trading losses) must remain in the account for a minimum of 12 months or the bonus may be surrendered.

Offer expires: 1/06/2020

Get up to $2,500 at E*TRADE Today

E*TRADE Review – Conclusion

E*TRADE is a full-service brokerage offering investment options for investors of all types. Overall, E*TRADE is a great choice for anyone who wants to trade stocks, ETFs, options, or mutual funds.

Who is E*TRADE best for? E*TRADE really shines for active traders. Its mobile and web platforms offer faster trading through point-and-click order entry and advanced trading tools. Plus, E*TRADE makes it easy to take more control of your portfolio and customize it.

Plus, E*TRADE charges zero commissions on U.S.-based stock, ETF, and options trades, making it one of the best brokerage options.

Meet the Author

Ryan Guina

Ryan Guina is The Military Wallet's founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Tennessee Air...

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