Etrade Review: Get Up To $600 Cash Back!
Etrade has been in the online brokerage space for decades and is one of the most well-known online brokers. This Etrade review will help you determine if their products and services are ones that can help meet your investing goals and needs.
Due to my experience in the online brokerage industry, I’ve been able to deal with many of the major brokerages out there. Etrade is one I have extensive experience working with and dealing with their platform. If you would like to check out some of my previous brokerage reviews, you can do so below:
As I have shared in past brokerage review posts, there are many online brokerages to choose from and they all have offerings that set them apart from the next. Many claim to be among the best online brokerages though some do not measure up when you look under the hood. That being said, if you simply need a place to invest in the stock market then it often comes down to price and tools they offer to determine which brokerage is best for you.
With that out of the way, let’s get on with the review of Etrade and how they might be able to help with your investment needs.
The Trading Platform: The trading platform at Etrade as one of the best platforms available in the industry. It is intuitive and user friendly when it comes to placing trades and finding the information you need. At $9.99 per stock trade and $9.99 plus $.75 per options contract, their prices are competitive within the online brokerage space.
Free Streaming Quotes: Like Scottrade, Etrade’s streaming quotes are free. Once you open the account and fill out the necessary paperwork (which takes maybe five minutes at most) you can access free real time quotes. This is a great feature to have if price movement is something you like to watch. Since I like to watch the stock market, I will generally not invest with a broker who charges for streaming quotes.
Forex/Futures Trading: This is a nice little feature that is not offered at every online brokerage. I will caution that Forex and Futures trading is not for everyone and does have its own unique set of risks associated with it. However, it’s a great feature that helps set Etrade apart from some of the other brokerages in the industry.
Advantages of E-trade
Powerful Trading Tools: Not only is Etrade’s trading platform user friendly, but they also offer a lot of research and tools that can help you with retirement planning. Their free educational offerings can help you better assess what kind of strategies to put in place in order to better manage your investing needs. Etrade has also been recognized by publications like Kiplinger’s for having some of the best tools and education available in the industry.
Solid Offering of Mutual Funds: If you want to invest in mutual funds, you will be happy with E-trade. They’re very competitive in regards to mutual fund offerings as they offer over 8,000 mutual funds, of which, 1,300 are no load, no transaction fee funds. If your mutual fund of choice does have a commission associated with it then it’s competitively priced at $19.99 instead of $50, which is what you’ll find at other major brokerages. I will also point out that if you need help determining which funds to invest in, Personal Capital offers a free tool that allows you to find the lowest fee funds available. I love and use it myself. Beyond mutual funds, Etrade also offers roughly 110 commission-free ETFs to choose from.
Customer Service: Having worked in customer service for years I recognize good customer service when I see it. Every time I have interacted with someone from Etrade I’ve had a great experience. They’re also open 24 hours a day, which unfortunately is not all that common and have a nice chat feature. Etrade also has a branch network of several dozen branches throughout the country that are open to help you with your account problems or investing needs.
Low Initial Minimums: Etrade is among the best in regards to the minimum amount needed to open an account. If you open a standard account the minimum is $500 or $2,000 if you’re looking to open a margin-enabled account. Having worked in the industry myself, that is among one of the lowest minimums needed to open an account there is. That being said, if you open a retirement account with Etrade they have no minimum balance requirement.
Access to Foreign Markets: Along with the aforementioned Forex/Future trading this also really helps set Etrade apart. They have access to stock trading in Canada, France, Germany, Hong Kong, Japan and the UK. I’m not certain how competitive their pricing is in relation to that, but it is a great feature to have if that’s something you’re looking for.
Disadvantages of Etrade
Commissions: The only issue I have with E-trade is their commission structure, as it relates to stock trades. Like I said earlier, $9.99 is definitely competitive, but there are others in the online brokerage space that are cheaper. I will point out there is always the option to try and negotiate the commission. They do offer a lower commission structure at $7.99 per trade, but you have to place a certain number of trades each quarter to qualify for that. With that in mind though, I always like to look at the value being delivered and in the case of E-trade there is good value for that price.
You Need to be an Active Trader to get their best Platform: Their most robust platform, Etrade Pro, requires you to place at least 30 stock or options trades per quarter. That may not be an issue for many, but if you don’t trade often enough then it won’t be an option for you. Again, if you don’t trade often this should not be a concern, but if you’re wanting to not deal with that minimum trade level, you can look at platforms like TradeKing as a justifiable alternative.
etrade review – my take
I think for many, Etrade is a great option to consider if you’re looking for a place to manage your investments. They do have a solid amount of offerings and have high quality tools to use. Etrade offers a good number of mutual funds and 110+ commission-free ETFs. The other thing I like about Etrade is their maturity allows them to offer a number of different things you won’t be able to find at most other brokerages.
If you need a good online brokerage that has solid offerings, then Etrade may be for you and you can usually have your account opened online within 10-15 minutes. One nice thing to keep in mind is that Etrade does offer promotions for opening a new account such as free trades at account opening or even a cash bonus if you start with different deposit amounts.
Who do you invest with? What do you typically look for when deciding on a broker?