ETRADE is a renowned online broker that caters to investors of all levels, including beginners. Its user-friendly platform, extensive educational resources, and $0 commissions on stock, ETF, and options trades make it an attractive option for those starting their investment journey. However, it’s crucial to understand both the pros and cons before deciding if ETRADE is the right fit for you.
Pros of E*TRADE for Beginners
User-Friendly Platform: E*TRADE’s platform is designed with simplicity and ease of use in mind. The intuitive interface provides clear navigation and readily accessible information, making it easy for beginners to find what they need and understand the platform’s functionalities.
Extensive Educational Resources: E*TRADE offers a wealth of educational resources to help beginners learn about investing and build their financial knowledge. These resources include:
- Webinars: Covering topics like diversification, technical analysis, and options trading.
- Online Investing Courses: In-depth courses on various investment topics, from basic concepts to more advanced strategies.
- Thematic Investing Section: Guides on how to invest in companies aligned with your values.
- Market Commentary and Research: Provides insights and analysis to help you make informed investment decisions.
Commission-Free Trading: E*TRADE eliminates commissions on stock, ETF, and options trades, making it a cost-effective option for beginners who are just starting to build their portfolios.
Large Selection of No-Transaction-Fee Mutual Funds: E*TRADE offers over 4,000 no-transaction-fee mutual funds, allowing you to diversify your portfolio without incurring additional costs.
24/7 Customer Support: E*TRADE provides 24/7 customer support via phone, email, and chat, ensuring that you have access to assistance whenever you need it
Mobile App: E*TRADE’s mobile app provides access to all the platform’s features and functionalities on the go, allowing you to manage your investments and trade from anywhere.
Cons of E*TRADE for Beginners
Website Transparency: E*TRADE’s website can be challenging to navigate, making it difficult to find specific information, such as instructions on closing an account.
Low Interest Rate on Uninvested Cash: E*TRADE’s interest rate on uninvested cash is currently 0.01%, which is significantly lower than many other brokers. This means you won’t earn much interest on the cash you keep in your account.
Limited Investment Options: While E*TRADE offers a wide range of investment options, it does not include forex trading or cryptocurrency, which may be of interest to some beginners.
Fractional Shares Not Available for All Investments: Fractional shares are only available for a limited selection of stocks and ETFs, which may restrict your investment choices.
Is E*TRADE Right for You?
E*TRADE is a solid option for beginners who are looking for a user-friendly platform, extensive educational resources, and commission-free trading. However, it’s
E*TRADE Commissions and Fees
The commissions and fees charged by E*TRADE are comparable to those of the other online brokers that we polled. As the industry standard, they provide commission-free stock and exchange-traded fund (ETF) trading, and their $0 Options contracts cost $65, which is fair even though it’s not the lowest available price.
Investors in mutual funds will value E*TRADE’s 4,400 no-load, no-transaction-fee funds very much. Please be aware that the company assesses a $49 early redemption fee. 99 if you sell funds with no load and no transaction fees within ninety days of the purchase. All other mutual funds incur a standard $19. 99 transaction fee.
E*TRADE charges an average margin rate of 7. 79%, ranging from a high of 8. 95% for account balances less than $10,000 to a low of $105 45% for accounts of more than $1 million. Margin traders on a tight budget looking for the best deals should visit Interactive Brokers or Zacks Trade.
Furthermore, it’s important for active traders to know that E*TRADE might get paid for order flow. Day traders may find this to be a drawback, but the company insists that it is dedicated to providing the best trade execution.
The majority of the time, E*TRADE’s account fees for sporadic additional services—like $25 for outgoing wire transfers—are about average. One fee to be aware of is the $75 fee for full account transfers out, which is higher than average.
Who Should Choose E*TRADE?
E*TRADE is an excellent online broker for most investors. A comprehensive educational and research platform, trading experts, and complimentary financial counseling can be of great assistance to novice and intermediate investors.
The Power E*TRADE platform’s features, such as its risk metrics, options strategies, and charting tools, will be valued by seasoned active traders. Fundamental investors will benefit from independent research reports and screeners. The abundance of instructional materials is available to traders and investors at all skill levels.
Although many different investing demographics are catered to by E*TRADE’s offerings, they are not flawless. Expert traders and regular options traders may favor a platform made just for them; for some pros, the absence of a journal feature in particular may be an issue.
Conversely, novice investors may prefer a platform such as Schwab or SoFi that allows fractional shares, so they are not locked into buying a small number of expensive stocks. For those features, investors looking to trade cryptocurrencies or forex must look for other online brokers.
However, our biggest complaint about the platform will likely affect investors of all experience levels: poor customer service with lengthy wait times over the phone and through text chat. If you are able to wait a few days for an email response, this becomes less problematic.
IS E*TRADE GOOD FOR BEGINNERS | I’M OFFICIALLY ON E*TRADE – HERE ARE MY EARLY THOUGHTS
FAQ
How much money do you have to start with on Etrade?
Can you make money with Etrade?