ETRADE Review 2021 – Is it the Right Broker for You?

E-Trade financial corporation (E*TRADE) is an electronic trading platform where investors can trade the widest variety of financial assets. Here, you can trade futures contracts, common and preferred stocks, ETF, options, mutual funds and a host of fixed-income investments. Etrade fees start from $6.95 per trade. This doesn’t make it the cheapest among the reputable stock brokers. However, Etrade compensates for the high fees by providing its clients with a wide variety of trading tools as well as educational and wealth management resources.

But who does the broker appeal to most? What are the trading fees on its different platforms and where does it shine and shilly-shally? We have broken all this down in this etrade review.

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67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Etrade stock brokerage overview?

First off, understand that etrade is a discount broker – implying that it offers more of a stock and financial products trading platform and less of investment advice. It is available in three trading platforms that are free to open for all their customers. You don’t even need a minimum trading activity or operating balance to maintain one. These include:

• E-trade web: The web-based online platform allows you to stream live market data, access real-time trading quotes, and commentaries for free. It also gives you access that helps you spot emerging markets for free. Not to mention it also features highly intuitive and and resource-rich dashboard that you can use to track your accounts and investments.
• E-trade Pro: is a desktop app that boasts of all the features of the web platform. Additional resources that you will most likely find here include the strategy scanner and complex options market strategies. It also allows you to backtest different strategies to assess their capabilities.
• Power E-trade: This is by far the most sophisticated and innovative free trading platform by etrade and within the larger discounted brokerage markets yet. It is a web-trading platform that features a compressive list of both basic and advanced trading and analysis tools for the stock, options and futures markets. Some of the power features included on the platform include automated technical analysis and charting tools, risk analysis tools, 30+ drawing tools, different chart layouts, and 100+ trading studies. Plus they are all availed in plain and easy-to-understand English not the usual financial market jargon.
• Etrade mobile trading platforms: We also found out that etrade discount broker is one of the few – if not the only one – with two mobile trading apps. And according to their website, the ETRADE APP is designed to help you stay in touch with the markets and open accounts while on the move. The POWER ETRADE APP, on the other hand, features al the pro trading tools and resources of the power etrade platform and the app is only meant to help brings the platform closer to the trader.

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What is Etrade best for?

Etrade and its multi-layered trading platform that caters for all the different types of traders:

• The basic trading tools, plain and easy to understand trading language, backtesting tools and educational and training resources make it suitable for BEGINNER INVESTORS.
• The sophisticated and highly advanced analysis and trading tools make it most adapted to ELITE INVESTORS
• The attractive welcome bonuses and discounted trading fees and commissions make it suitable for ACTIVE/FREQUENT TRADERS.

How does it work?

ETrade is a discount broker specializing in the buying and selling of such financial investment products like etrade stock, options, and futures. The three-decade-old brokerage firm and an industry pioneer in the electronic trade has over the years come up with innovative trading platforms. These make it possible for investors and traders alike to not only follow different markets but also make more informed decisions when entering into positions. Plus an Etrade account isn’t discriminative and can be used by both the day traders and position takers.

The comprehensive etrade platforms support different kinds of trades including buy (long) and short (sell) positions. It also gives you access to the real-time stock and commodity markets. And you don’t always have to execute trades at the prevailing market conditions. The advanced range of trading tools available here makes it possible for you to enter into limit orders. This implies that you can open a trade for a stock or commodity at rates higher or lower than the prevailing rates, and have Etrade systems hold back on its execution until your desired price is reached.

How to make your first trade on ETrade:

Etrade fees and trading charges

First off, it is important to point out that E*TRADE isn’t the cheapest discount broker out there.

To open an Etrade account and gain access to the Etrade dashboard and all its accompanying tools and resources, you will need a minimum of $500.

The first 30 trades per quarter will then cost you $6.95 each after which they rescind to the discounted rate of $4.95 per trade.

A broker-assisted trade, on the other hand, costs $25 per trade.

Etrade also treats every new account to 100 free ETF trades. Note that while you aren’t being charged a commission for these 100 trades, you will still have to pay the annual expense fee that ranges from between $0.19 and $0.75 per annum.

Plus if you are more inclined to managed trades and robo advisors, Etrade has an in-house automated trade platform referred to as the Etrade Adaptive Portfolio. It is a portfolio management platform that blends the power of both algorithmic and elite human traders. And to hold an account here, you need a minimum of $5,000 and its annual advisory fee starts from 0.30% per annum.

Bottom line

Etrade is and remains one of the most innovative discount brokers around. And this claim has the backing of its highly innovative trading/analysis resources and comprehensive trading platforms. We particularly appreciate that it takes into account the trading needs of the different classes of traders. Beginners, slightly experienced and elite traders have a near equal chance of making it here. Not to mention that the broker also has the managed Etrade Adaptive Portfolio for passive investors. If you are looking for a discount broker to invest with, start by comparing etrade’s strengths and such weaknesses as high trading fees. And only register with them if you believe the perks outweigh the downsides.

Glossary of Trading Platform Terms

Platform Fee The trading platform fee refers to the amount a trader pays to use the platform and access its integrated platform features and tools. It can be a one –time fee paid for the acquisition of the trading platform, a subscription fee paid monthly or annually. Others will charge on a per-trade basis with a specific fee per trade. Cost per trade Cost per trade is also referred to as the base trade fee and refers to the fee that a broker or trading platform charges you every time you place a trade. Some brokers offer volume discounts and charge a lower cost per trade for voluminous trades. Margin Margin is the money needed in your account to maintain a trade with leverage. Social trading Social trading is a form of trading that allows for the interaction and exchange of trade ideas, signals and trade settings between the different classes of traders. Copy Trading Copy trading, also known as mirror trading is a form of online trading that lets traders copy trade settings from one another. In most cases, it is the newbies and part-time traders that copy the positions of pro traders. The copiers -in most cases - are then required to surrender a share of the profits made from copied trades – averaging 20% - with the pro traders. Financial instruments A Financial instrument ideally refers to the proof of ownership of financial commodities of monetary contracts between two parties. In the money markets, financial instruments refer to such elements as shares, stocks, bonds, Forex and crypto CFDs and other contractual obligations between different parties. Index An index is an indicator that tracks and measures the performance of a security such as a stock or bond. Commodities Commodities refer to raw materials used in the production and manufacturing of other products or agricultural products. Some of the most popular commodities traded on the exchange markets include energy and gases like oil, agricultural products like corn and coffee, and precious metals like gold and silver. Exchange-Traded Funds (ETFs) An ETF is a fund that can be traded on an exchange. The fund is a basket containing multiple securities such as stocks, bonds or even commodities. ETFs allow you to trade the basket without having to buy each security individually. Contract for difference (CFD) CFDs are a form of contractual trading that involves speculating on the performance of a particular trade in the market. CFD’s will basically allow you to speculate on the future value of securities such as stocks, currencies and commodities without owning the underlying securities. Minimum investment The minimum investment simply refers to the lowest amount of capital injection you can deposit into a brokerage or a trading platform. Different brokers demand varied minimum investment amounts from their clients either when registering or opening trade positions. Daily trading limit A daily trading limit is the lowest and highest amount that a security is allowed to fluctuate, in one trading session, at the exchange where it’s traded. Once a limit is reached, trading for that particular security is suspended until the next trading session. Daily trading limits are imposed by exchanges to protect investors from extreme price volatilities. Day traders A day trader is a term used to describe a trader who is constantly opening trades and closing them within a day. It is a common term used to refer to forex traders who open trade and only hold onto it for a few minutes or hours before disposing and having to leave no open trades at the time the trading day closes.

Trade with eToro - World Leading Social Trading Platform

Our Rating

• Trade Stocks, Forex, Crypto and more
• 0% Commission on Real Stocks
• Copy Trades of Pro Investors
• Easy to Use Trading Platform

Visit Now

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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