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eTrade Review & Rating USA 2021

Is eTrade USA Scam Or Legit?

eTrade is an American-based online financial services company that deals in a variety of tradable asset classes for individuals interested in the financial market. Whether you’re an investor, trader, stock plan participant, advisor, or stock plan administrator, the company offers something for everyone. Our eTrade review shows arguably, it’s one of the best companies for new investors and traders interested in the financial market. One to potentially consider for an eTrade Open Account.

eTrade USA, sadly has no branches outside of the United States. Thus, it’s imperative that you make use of domestic services. Presently, you won’t be able to do business with eTrade if you are in in any country outside of the United States.

The firm prides itself on being the pioneer of online trading for retail investors. It was founded in 1982 by Bernard A. Newcomb and William A. Porter. The company is regulated by authoritative and reputable US regulators like FINRA and the Securities and Exchange Commission (SEC).

Aside from that, the firm also has significant experience in banking, is listed on the stock exchange, and discloses its finances regularly. Thus, it is one of the transparent financial services in the USA.

E*Trade Pro and Con
  • Professional Mobile app
  • Options, stocks, and ETFs are commission-free
  • Multiple investment options
  • Tools provided to clients are easy to use
  • It does not include the international market
  • Limited forex trading currencies
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Web Siteus.etrade.com
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FINRA - U.S. Financial Industry Regulatory Authority
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Is eTrade Scam Or Legit?

Through the years, eTrade USA ranks as one of the safest companies investors and traders can do business with and make investments through. This is because they guide clients by educating them and providing all adequate information for trading safely and earning maximum returns. They also offer the appropriate tools, research, and education to enable their customers to be up to date with the market.

Our eTrade review analyzes the company’s ability to provide the appropriate services to prospective clients and provide them with enough returns. eTrade opinions over the internet typically assess the strong suits of the firm. However, in this eTrade USA review, you would find both the advantages of the company as well as the disadvantages and all added costs. Then, you can decide for yourself if eTrade fits into what you seek.

Our Fidelity review and eToro USA review explicitly analyzes costs, advantages, and disadvantages, similar to this eTrade review. The goal is to allow clients to compare and contrast benefits then choose the most convenient.

Additionally, another guarantee of their legitimacy is that they have a number of top-tier regulators regulating them. FINRA, SEC, SPIC, and NFA, to mention a few, are all top-notch regulatory bodies that ensure investor protection. Companies that are regulated by these organizations are monitored to ensure customers are not duped.

The firm has undergone several changes throughout its existence. Some of which are directly linked the sell-off of certain parts of the companies directive. Thus, the scope of eTrade USA operations are more limited than they once were. For our readers who find themselves outside of America, there are alternatives. You can check out our Interactive Brokers review for their great offers and multiple asset classes.

Interactive is a financial service company too. Since pricing and fees are also vital in a review, you would want to compare the one of eTrade with other financial services.

eTrade USA Open Account

Our eTrade review found that creating an eTrade is quite simple. You can quickly complete your registration online since every part of the company’s website has account types with “open an account” located below or beside them. All you have to do is determine the kind of account you’re interested in and complete the registration process.

Since the company has scaled down, it only caters to American residents. The deposit minimum for basic accounts is $0. However, if you are interested in a margin account, you need a minimum deposit of $2000, while $500 – $15,000 is the range for personalized investments with eTrade USA. The available account types are individual, joint, business, retirement, pension, education savings, custodial, and eTrade personalized investment accounts. Thus, depending on your preference and financial goals, you can easily choose the type that works for you.

The requirements for getting an eTrade open account is the same for most financial services companies—information like your name, address, social security number, and other personal details. Your bank details and other business details would also be required. The process takes approximately 15 minutes, after which you would wait for confirmation of your activated eTrade open account.

eTrade Open Account Offers

There are several reasons to open an account with eTrade. The firm offers a wide range of services, from services for investors to stock plan administrators. Each customer has benefits they can enjoy and take advantage of from eTrade.

Our eTrade review USA plans to explain these account types to prospective clients as well as current clients looking to open other accounts with the company. Unfortunately, after the rebrand of eTrade in jurisdictions outside of the USA, US residents are the only candidates who can get an eTrade open account. The firm has many branches in 17 states across the US.

They include Arizona, Colorado, California, the District of Columbia, Florida, Georgia, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Texas, and Washington. You can visit the company’s website to find the branch nearest you.

They have brokerage accounts, accounts for retirement plans (for both individuals and businesses), and bank accounts. The following are some popular accounts that might interest prospective clients.

Brokerage Account

eTrade USA offers brokerage accounts to customers who want to deal with tradable goods on the financial market. Their wide diversity of asset classes include stocks, futures, bonds, ETFs, mutual funds, and options. Sadly, eTrade open accounts have a limited number of currencies for their forex trade. You can check our JP Morgan You Invest review if you’re interested in one with more opportunities. However, their financial services are very appealing offers for many classes of investors in the US.

Commissions on most of the asset classes in this eTrade open account are low. This means they are either $0 or less than that of many of their competitors. Also, new investors need not worry about having difficulties with the complex nature of brokerage.

eTrade makes it a point to make information available to interested investors who do not understand the market. You can also access trading tools to make your experience better.

Premium Savings Account

If you are looking to protect your money and get access to it when you need it, this eTrade open account is the right choice for you. You do not need a deposit amount to open a savings account with the firm. With an eTrade open account for savings, your deposits are insured for up to $1,250,000.

Your account is also protected by the Federal Deposit Insurance Corporation (FDIC). But, savings do not involve too many risks as investing does, which means that you need not worry as much. eTrade also provides tools for clients with this type of account.

IRA Accounts

For those interested in IRA accounts, there are three types that prospective clients can try out: the traditional IRA account, the Roth IRA, and the Rollover IRA. For these types, eTrade has a selector tool on their website that can help customers choose which IRA fits their long-term or short-term goals.

Limited margin, futures, and options are available in the traditional IRA accounts. Also, your earnings from investments are tax-deferred with this account. No account minimums and no yearly IRA fees are charged, although there may be other charges such as transaction fees and brokerage commissions.

Like the traditional IRA, Roth IRA also has the tax-deferred benefit. Qualified distributions of both account holders and their beneficiaries are tax-free. All other benefits account holders can enjoy are available on their website.

The Rollover IRA is also a simple process that offers a range of asset classes you can buy and sell using your account.

There is also the Simple IRA and SEP IRA for small businesses.

Usability, Look & Feel

Due to the company’s recognition as one of the first online broker companies, it has upheld the standards of making the experience of using their platforms easy. Whether you use a computer or phone to access their site, creating an account and accessing the information you seek is quite straightforward.

The website or trading platform is an essential topic in an eTrade review since most of the company’s dealings are through the internet. The company has two leading web-based platforms. However, they have mobile apps that replicate the same experience for clients. The eTrade Power app and website, for example, is an ideal choice for active traders and investors.

The company has numerous trading tools on the app and site that you would find very useful if you fall into those categories of clients. The cookies on the platform also work impressively by making frequently used tools available once you log in.

For the easy usage and maximum accessibility of your eTrade open account, however, you might prefer to use the mobile apps. Although the company’s online site isn’t all bad, getting information that should be made easily accessible to prospective clients is pretty stressful. They are available, but you may have to navigate through the site a bit.

eTrade USA Open Account

Our eTrade review found that creating an eTrade is quite simple. You can quickly complete your registration online since every part of the company’s website has account types with “open an account” located below or beside them. All you have to do is determine the kind of account you’re interested in and complete the registration process.

Keep in mind that the company only caters to American residents. The deposit minimum for basic accounts is $0. However, if you are interested in a margin account, you need a minimum deposit of $2000, while $500 – $15,000 is the range for personalized investments with eTrade USA. The available account types are individual, joint, business, retirement, pension, education savings, custodial, and eTrade personalized investment accounts. Thus, depending on your preference and financial goals, you can easily choose the type that works for you.

The requirements for getting an eTrade open account is the same for most financial services companies—information like your name, address, social security number, and other personal details. Your bank details and other business details would also be required. The process takes approximately 15 minutes, after which you would wait for confirmation of your activated eTrade open account.

To see how the eTrade account compares, check out the popular Merrill Edge Open Account.

eTrade Trading Platforms

In many an eTrade Review, the company’s trading platforms are rated one of the best in the market. The platforms are user-friendly to beginners or new investors, while professional traders are also immensely content with all the information and tools the company has. There is even a platform that caters explicitly to advance traders.

Power eTrade, eTrade Web, and eTrade Pro are the three platforms clients use to access and operate their accounts. These platforms possess all the tools for investors and traders, and at the same time, it is easy for savers to log in to fund their accounts. With a few taps on your phone or clicks on your computer, you can check your account balance, get primary data, and screen for new offers.

However, all these platforms aren’t the same. Each has distinct purposes and features to cater to different needs.

Power eTrade

Power eTrade is one of two platforms available as a mobile app. The company makes it a point to satisfy all the traders’ needs by providing all the necessary tools for the trade. eTrade opinions in many reviews have one thing in common: they all commend the company’s efforts on the development of this platform.

Regardless of whether you access Power eTrade via a computer or phone, you are not limited since the same resources are available on both. You can view real-time quotes and charts, as well as access option chains you can customize.

If you are looking to trade futures, this platform enables you to input your orders from the futures ladder. Similarly, you can trade complex strategies. The mobile apps are available for free on both the Google PlayStore and iOS App Store.

eTrade Web

This platform is one that any eTrade review will agree is user-friendly for new investors and traders. Using the eTrade Web, you would have access to real-time quotes and stock screeners, amongst other things.

There are also tutorials on the platform that educate customers on how to manipulate stock charts, use various screeners, and trade. Although many customers of eTrade prefer the company’s phone apps, getting familiar with the website isn’t so difficult. Once you get accustomed to it, you realize it is quite easy to use.

eTrade Pro

The eTrade Pro is meant to be a desktop platform. It’s popular among advanced and professional traders who already have some idea about the market. eTrade often encourages new investors to use eTrade instead of eTrade Pro.

Other Tools

eTrade USA also has a platform for the Apple smartwatch device. With it, you can view the day’s return of your account’s portfolio, alerts, and index data.

eTrade Payment and Trading Fees

Nowadays, it is not difficult to find financial services and brokerages that charge $0 fees and deposits. eTrade also falls in this category.

Now, they charge $0 on deposits. Trading in stocks and ETF are free as well. Options also have a trade commission of $0, but there is a contract charge of $0.65. Active traders enjoy an additional discount of $0.50.

For customers who seek to trade in mutual funds, it is important to remember that fees are quite high. Our Lightspeed review might give you a better option in this regard.

Trading Fees

Trading fees are costs traders incur when they buy and sell in the financial market. Examples of these are conversion fees, commissions, financial rates, and spreads. This eTrade review USA points out some of the costs prospective customers should expect.

We found in our eTrade review that eTrade’s fees are generally pretty low in comparison with other companies. They do not charge a commission for ETFs and stocks, which is excellent. Options trading fees are also free. But, there is a volume-based fee of $0.65 per contract. Other asset classes, like their mutual funds, incur a high trading fee of $19.99. Broker Assisted Trades also cost a whopping $25.

Non-Trading Fees

Non-trading fees come from things like withdrawals from your account and inactivity. They are not directly related to your trading activities. With our eTrade review, we found out that the company’s non-trading fees are low.

eTrade charges nothing when you decide to close your account or transfer accounts. Inactivity fees are also non-existent, unlike quite a number of its competitors. If you use Automated Clearing House (ACH) to make withdrawals, you’re not charged any fee.

However, if you decide to use wire transfer, you should be ready for a $25 fee. Apart, from that, you need not worry about non-trading fees when doing business with eTrade USA.

Looking for an alternative broker to compare fees? We’ve done the ground work for you. Take a look at Interactive Brokers USA or our JP Morgan You Invest review for more options.

 

 

Customer Service

The customer service of the company is one of its best qualities. Many customers can attest to their readiness to help and how quickly it is for them to reply. You can get to them via phone or email. But, there is also the option of having a live chat with professionals.

Customers get access to retirement specialists, brokers, active trader consultants, financial consultants, and product specialists. If the issue that plagues you is one that you would prefer to sort out in person, it has about 30 local branches in the US that you can visit.

Alternatively, you can also visit their website where there are many Frequently Asked Questions (FAQ). Any inquiries you have may already have answers displayed there as well.

Phone

Customers who prefer to lodge complaints or ask questions via the phone have three different numbers they can dial. Depending on the type of account you have with them, or plan to open with them, a phone number is provided.

There is a contact number for people interested in stock plans, another for designated brokerage, and, finally, one reserved for people looking into eTrade banking and securities. Their support teams are available all day throughout the week. You would be connected within minutes.

Email

You can also reach them by email. eTrade support teams usually get back to customers within a day. Customers who like to do it old school style and send mail also have the option of doing so. There are two New Jersey mailing addresses where customers can send physical mail.

Live Chat

This option might be the only one in which eTrade falls short. Although you might get access to professionals who are ready to answer your questions, there have been several complaints about technical issues.

Safety and Security of Accounts

In a good company review, it is advisable to check for an assurance of protection. In the case of eTrade, you do not need to worry about the safety of your eTrade open account. The company has many regulatory bodies that oversee the operations of eTrade USA. No matter the account you have with eTrade, there are measures in place to sort you out in case of a financial crisis.

The central regulatory bodies that monitor financial services monitor eTrade as well. FINRA, SEC, FDIC, SPIC, and NFA are all top-tier regulatory bodies that monitor eTrade. Each regulatory agency has an amount that is available in insurance to eTrade customers.

Their complete Protection Guarantee also adds up to the numerous insurances to better protect your assets, privacy, and transactions. To find more information on how your eTrade open account is protected, you can check the company’s webpage.

Our eTrade review discovered that once you get your account with eTrade, security for your information is vital . After your first log in using a new device, there is the need to register this device by using a cal or security code. After this registration, you get to access your account by using your ID and password. This access method is not exactly safe, and customers are at risk of having their information and trade activities monitored.

Because this method does not guarantee your account’s safety, it is better to opt for the Symantec Virtual Digital Security Token. It is a tiny device that provides a new personal access code every minute. There is also a version in the form of an app for your phone. Thus when logging in, you would need a key code in addition to your username and password.

eTrade Tradable Products

eTrade has a variety of products that would interest traders and investors alike. The company deals in Stocks, Bonds, ETFs, Mutual Funds, Options, and Futures. Each has benefits and offers that would help customers reach their desired profits. It is also possible to trade in other North American stocks, such as Canadian stocks.

This aspect of our eTrade review covers products for investors and traders. If you’re interested in their savings accounts, you can check their website for all their fantastic offers. As for their tradable products, you needn’t worry if you have no idea about how the market works. The company has a lot of tutorials and detailed information concerning those.

We found in our eTrade review you can equally contact their support team if you are not satisfied with the information on their page. The available tradable products of the company are:

  • Stocks
  • Forex
  • Bonds
  • Options
  • Futures
  • Mutual Funds
  • Exchange-Traded Funds (ETFs)

If you’re new to investing and trading, the company has resources to educate you. This way, you have some idea before you enter the financial market.

E*Trade Stocks

eTrade Stocks

While there are a huge number of different ways to invest – both with eTrade and in general – the core of investment for many will always be stocks. eTrade states this allows you to own a piece of a company’s future and we think that’s an elegant way of putting it, especially as the simplicity of stocks is such a huge part of their wider appeal compared to more complicated investment assets.

The ability to own part of a company and generate income from dividends, as well as craft both long- and short-term strategies, means this is still one of the most flexible and attractive options around, providing you with the exact amount of control you need.

With free stock analysis and $0 commission per trade, eTrade is a perfect platform for stocks. Its mixture of excellent tools and assistance, market data, charts and stock screeners give you a clear overview, while expert advice can help you hone in on the right investments.The practicalities of trading are made easy too with their stock ticker page.

eTrade manages to walk the line between providing enough help for new and casual investors, while also being intricate and detailed enough for market experts. Whatever stage you’re at as a stock investor, they can provide an ideal platform.

Summary & Conclusion

E*Trade ETF

eTrade ETFs

For many, ETFs and eTrade will be the perfect trading combination. ETFs are all about easing the complexities of stock trading with baskets of stocks and bonds, which allows for easy diversification and tracking key market indexes. Essentially, they are there to help people make smart investments without needing to be market experts in order to do so.

Naturally, with eTrade priding themselves on making investments as easy as possible – thanks to their expertise and world-class trading platforms – they go together pretty much perfectly. We’re not only talking in terms of ease of use either, because both ETFs and eTrade have a focus on flexibility and diversification. After all, more choice is always better, but more choice doesn’t mean things have to get needlessly complicated.

When you balance that alongside eTrade’s zero commissions at $0 per trade, 24×5 trading, the flexibility to buy and sell quickly like stocks, and the ability to learn more at their knowledge centre – not to mention around the clock support – it’s crystal clear that eTrade have done an amazing job of achieving what ETFs should always be about: they make the benefits of investments suitable for anyone interested in them.

E*Trade Funds

eTrade Banking

The bank eTrade runs is FDIC-insured. You can open both checking and savings accounts, depending on your preference and goals. Our eTrade review found that all accounts have distinct benefits customers enjoy. You can also fund your eTrade open account with Transfer money, a wire transfer, a check, or transfer accounts from a different financial institution.

Premium Savings

There is no monthly fee charged on premium savings accounts. Your bank deposits are also insured for up to $1,250,000. You would also have the luxury of accessing your account on their mobile app whenever you want. Bank tools are also available for your use.

Max-Rate Checking

With the Max-Rate Checking account, you have unlimited ATM refunds. The mobile app is also available for those with this account, making managing your account convenient.

However, you would need to maintain an average account balance of $1500 every month in addition to placing 30 or more options or stock trades to dodge an account fee of $15.

eTrade Checking

There are no monthly fees and minimum balances required for eTrade Checking accounts. You can get access to your money at any ATM in the US. There is also a free debit card with unlimited transactions that comes with this account. The Mobile app is available for this account too.

E*Trade Futures

eTrade Futures

With 24/6 access to the relevant markets and a $1.50 price per contract rate on futures and options on futures (with the exception of Bitcoin), it’s no surprise that so many people are turning to eTrade for all their futures trading needs.

It will be best for some to think of future trading as part of a family of great investment opportunities, especially when you combine the offer here with the terrific options availability which can also be accessed via the eTrade platform. Indeed, no matter what you trade with, the specialised and expert help, varied and powerful tools, and ultra-competitive value all remain the same.

What does make futures stand out to investors though is the ability to trade in contracts with very high liquidity in the biggest markets in the world, with a huge amount of scope for diversity across a wide range of currencies, metals, energies and more. There’s also no short sale predictions, as well as the ability to trade multiple times a day, regardless of account value, meaning you can do a  lot with a relatively small amount of capital. And all of this is powered by professional level tools and technology available on desktop and mobile.

E*Trade Bonds

eTrade Bonds

eTrade is all about providing ordinary people with the opportunity to get stuck into the world of investments with its ease of use, great customer service and even educational facilities to help people go from beginners to seasoned investors over the years. This makes them ideal for people looking to get involved with bonds, which are generally designed to provide as steady and predictable an income as possible, and to protect people against the ups and downs of the market.

In other words, while some investment assets are high risk and high reward, but with the potential for huge losses, bonds usually provide a much more moderate risk. Therefore, they are naturally very attractive to more casual investors. They are a great choice for those who don’t have the time to spend every waking hour monitoring the markets and instead want investments that work for them on a platform where help is available if you need it.

eTrade perfectly fits that bill, providing the ability to craft a reliable source of interest, help to manage inflation and interest rate risks, along with access to tens of thousands of offerings from 200 leading liquidity providers. It’s commission free on US Treasury and new issue bond trades, with $1 commission per bond.

E*Trade Options

eTrade Options

There’s no doubt there’s a level of complexity integral to the principles and concepts behind options trading, at least compared to alternatives and especially for serious traders. You’re purchasing the right to buy or sell an asset at specific dates or prices, meaning there are more things to consider than when simply purchasing an asset outright.

That said, there’s no reason to make things more complicated than necessary, which is why it’s important that eTrade keeps things as simple as possible when trading options, while still maintaining as much control as possible. There’s a huge amount of strategies available, and they even break them down into different levels of complexity so you only bite off what you know you can chew. It’s a straightforward way of helping you make smart investment decisions, with 50c equity and index options.

At level one, you.’re aiming to preserve your capital, and strategies here include covered calls, buy-writes and covered call rolling. Level two is more of a growth strategy and you can choose from long calls and long puts, married puts, collars, long straddles and long strangles and cash secured puts. Further growth and speculation is available at level three, which includes debit, credit, calendar and diagonal spreads, butterflies and condors, iron butterflies and iron condors and naked puts. It’s a huge amount of choice available on their world-class platform

eTrade Review - Overall Conclusion

One commendable trait of the eTrade is their choice to make all the information new investors need accessible on their website. There are video tutorials and other educational tools on their platforms as well. But new investors and advanced investors alike have the potential of enjoying their eTrade experience.

Our eTrade USA review covers all the essential information prospective clients must arm themselves with before signing up with them. Any additional information on commissions, account types, fees, and research tools can be found on the company website.

The numerous regulatory bodies that monitor eTrade ensure that the funds and assets of customers who sign up with the company are safe. The remaining thing to do is decide if all the information provided aligns with your financial goals and go for it.

Looking for an alternative broker from our Best Broker listings? Take a look at our Ellevest review.

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