Full Review of E*Trade Commission Free Trading Platform

UTC by Osaemezu Ogwu · 6 min read
Full Review of E*Trade Commission Free Trading Platform

Here’s a full review of E*Trade – the solution offering the best tools and highly competitive service offerings to both newbie and expert traders.

Established in 1982 in Palo Alto, California, United States, E*Trade (NASDAQ: ETFC) is a financial services corporation that offers its clients an electronic trading platform for financial instruments such as common stocks, preferred stocks, futures contracts, exchange-traded funds, options, mutual funds and a host of others.

The company has several subsidiaries including ETRADE Capital Management LLC, ETRADE SECURITIES Inc, ETRADE Financial Corporate Services Inc, E TRADE Sverige AB among others. In 2019, E*Trade reportedly generated an estimated $2.8 billion in revenue.

Earlier in February 2020, Morgan Stanley (NYSE: MS), an American multinational investment bank with $552 billion in assets under management (AUM), entered a $13 billion acquisition deal with E*Trade. If all regulatory requirements are met, the deal to be completed by the end of 2020.

Full Review of E*Trade

E*Trade offers its clients zero-commission trading, comprehensive educational materials for newbie traders, robust portfolio building tools, account management solutions, and more. These innovative and exciting offerings make it one of the most popular regulated brokers currently in existence.

Unlike some of its competitors, E*Trade’s commission-free trading is available for all stock, ETF, and options trades. On top of that, the company has set the minimum amount for opening new trading accounts to $0, to make it easy for just anyone to take advantage of its offerings.

E*Trade does not charge traders annual, account closing, or inactivity fees. However, traders are charged $75 for full outbound transfers and $25 for partial transfers. E*rade offers users more than 4,400 zero transaction fee mutual funds and traders can execute transactions from any of the three available trading platforms including E*Trade Web, Power E-Trade, and E-Trade Pro.

E*Trade offers users two highly functional mobile apps: E*Trade Mobile and Power E*Trade. Both are available on Android and iOS devices, enabling traders to monitor their portfolios and execute transactions on the go.

The clients can take advantage of the extensive research and data available on the platform from eight providers, free of charge.

Responsive and friendly customer service is crucial for the survival of every business and it appears E*Trade takes the satisfaction of its customers very seriously as it has put in place various customer support options, including phone, email, and chat, available on a 24/7 basis across its 30 local branches.

E*Trade Strong Points

Numerous Financial Instruments: on the E*Trade platform, a vast array of investment selections are available for active traders as well as retirement investors, including futures contracts, advanced options, and over 4,400 zero-fee mutual funds. E*Trade mutual fund offering beats those offered by other brokers due to its cost-efficiency and cutting-edge tools. it’s noteworthy that mutual funds that are not on the zero-fee list will attract a transaction fee of $19.99 per trade.

On a regular basis, dedicated analysts update the list of highlighted mutual funds known as the All-Star Funds Report. In the report, the team carefully liss the top no-load mutual funds and ETFs available on E*Trade.

Great for Beginners and Experts Alike: Even for newbies in the world of financial instruments and stock trading, the firm offers various educational resources that will enable them to learn the ropes and start making money. Investors can view webinars on a vast array of topics including technical analysis, options trading portfolio diversification, and more. On top of that, E*Trade holds in-person educational events and seminars at its branches.

E*Trade customers can also take advantage of the numerous online investing courses on the platform delivered by Morningstar, an independent, highly reputed investment research firm. The courses teach investors everything from stock trading basics to how to build a solid emergency fund. A special section of the E*Trade site provides investors with advice on how to invest in firms that align with certain values such as green energy, gender equality, and cybersecurity.

For those who are too busy or simply do not have the patience to learn how to trade, the company has a computer-based investment management solution called E*Trade Core Portfolios. The advisor service attracts an annual fee of 0.30 percent and the minimum investment for the service is $500.

Professional In-Person Customer Service: In addition to offering clients 24/7 online customer support, the firm has a highly responsive in-person customer service team staffed by financial consultants across its 30 branches.

Three Trading Platforms: as stated earlier, E*Trade offers users three excellent trading platforms – E*rade Web, Power E*Trade, and E*Trade Pro.

With E*Trade Web, traders can have access to free streaming market data, real-time quotes, live market commentary, analyst research stock screeners among other features. Users can monitor their trading accounts, view market data in real-time, execute trades, and do more straight from heir E*Trade Web dashboards.

E*Trade Pro is the trading platform made for those who prefer to trade on desktop or PC. On this platform, traders can make use of highly functional tools such as Strategy Scanner and more.

Power E*Trade is designed for active traders. The platform features more than 30 different drawing tools, trading ladders, and customizable options chain views. Traders can also have access to accurate market data in real-time, plus 100 technical studies.

Right from the website, there are various demos and educational materials designed to show traders what each of the three trading platforms can do. This makes it easier for users to know the exact trading platform that best suits their strategy.

E*Trade Mobile App: Available on both Android and iOS, the mobile app enables traders to manage their accounts, place trades, and get access to news (including Bloomberg TV) and market quotes on the go. The app also features advanced stock and ETF screeners, and multi-leg options trading.

Commission-Free Trading: since October 2019, the company has been offering its clients commission-free trading. It’s options trading also attracts a very minimal charge of $0.65, while active traders pay only $0.50 commission.

Things to Improve

Despite its excellent features and offerings, E*Trade still has a lot of work to do in terms of website transparency and navigation. Important features such as closing an account, minimum investment and guidance are a bit hard to locate on the website.

Conclusion

Whether you are a newbie trader looking for a platform where you can trade, earn, and still learn the ropes, or you are an expert trader looking for a broker with the best tools and highly competitive service offerings, E*Trade is your one-stop-shop.

Share:
guides