Etrade Review


Best Bond Trading Brokerage Firm in 2014




Etrade Bond/Fixed Income and Other Investments Commissions (2014)


ProductPrice
Stocks and ETFs $9.99 ($7.99 if making 150+ trades per quarter)
Stocks and ETFs broker assisted $34.99
Options $9.99 + $0.75 per contract ($7.99 + $0.75 if making 150+ trades per quarter)
Mutual funds $19.99
Futures contracts $2.99 per contract, per side + fees
Fixed Incomemarkup or markdown and any transaction fee will be included in the price quoted
Forex No commissions. Etrade receives compensation through the bid/ask spread.
Bonds$1 per bond (minimum $10, maximum $250) for online secondary market trades. Includes Agency bonds, Corporate bonds, Municipal bonds, Brokered CDs, Pass-thrus, CMOs, Asset Backed Securities.

Investments stocks, bonds, mutual funds, futures, forex, fixed income, options, ETFs
Etrade minimum deposit to open account $500 for non-retirement cash account, $0 for retirement cash account, $2,000 for margin account
FeesEtrade fees
Etrade login, Etrade promotions and Etrade referral


Best Online Broker for Bonds


Etrade offers its customers an ability to invest in Agency, Corporate, and Municipal bonds, Brokered CDs, Pass-thrus, CMOs, Asset Backed Securities. The price for bond trading/investing is very good: $1 per bond with $10 minimum and $250 maximum. The costs are the same or better that what is offered at other large brokerage firms. Charles Schwab (review) charges $1 per bond with $10 minimum and $250 maximum per transaction. TD Ameritrade's (review) rate is $25 flat fee for Treasuries at auction (all other bonds and CMOs, CDs are priced on a net yield basis), and Fidelity's (review) price is $50 per transaction.

Of course, Etrade's bond pricing is only advantageous for small number of bonds - up to 25. If you need to buy over 25 bonds per trade, than going with a flat rate brokerage house, like TD Ameritrade with its straightforward $25 flat commission for Treasuries at auction makes much more sense.

At Etrade you can choose from over 50,000 bonds - one of the largest selections of bonds available online. The company offers great bond trading and research platform with graphical charts to help you find bonds that match your criteria. Clients also get unbiased bond recommendations - specific advice from professionals who are not paid on commission.

Etrade also offers a "bond ladder" - a portfolio of fixed-income securities that mature at regular, staggered intervals. You can also build a ladder with brokered CDs. Laddering is an investment technique designed to generate income based on an investor's unique situation, whether to support ongoing cash flow needs or plan for those expected to arise in the future. It can also reduce one's exposure to interest rate fluctuations.


Etrade Account Advantages

  • No account maintenance or inactivity fees
  • Large and well established company
  • Powerful trading tools
  • No IRA account fees, and no minimums with electronic statements and confirmations
  • Low minimums to open accounts: $500 for cash account, $0 for retirement cash account, $2,000 for margin account
  • Banking products available: checking, savings, money market accounts, CDs, and credit cards
  • No surcharges on large orders or penny stocks
  • Great research amenities from S&P, MorningStar, Thompson Reuters, Credit Suisse, Smart Consensus
  • Access to trading on 40 foreign exchanges
  • Free streaming quotes
  • Very broad selection of products: 8,000 mutual funds, every ETF sold, over 30,000 bonds, securities from 77 international markets, 1,300 no-load, no-transaction fee mutual funds, 90 commission-free ETFs


Etrade Review

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Etrade Promotion Link - trade free for 60 days + get up to $600:


Etrade Review

This article was updated on 03/25/2014.


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