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Etrade Hidden Fees


2020 Etrade hidden fees list. Does Etrade charge additional fees on taxable brokerage or IRA accounts? Etrade monthly fee.



Etrade Hidden Fees


If you’re thinking about opening a brokerage account at Etrade, you may be interested in the company’s fee schedule, including charges that may not be widely known. This article will dig deep into the company’s pricing and try to find any unknown charges.


Services That Are Free at Etrade


It probably is best to start with a survey of activities that Etrade does not charge for. Since acquiring OptionsHouse, Etrade has secured the old OH platform now called Power E*TRADE. It is now available free of charge to all customers. There are no trading requirements to use it.


Power Etrade


Other technical tools also come with no charge. The Etrade mobile app is free to use and has a lot of great features, such as check deposit, options trading, and live streaming of financial news. The broker’s smartwatch app is also free of charge.

Closing short options that are priced under $0.10 is free of charge. Trades of U.S. Treasury bonds are commission-free (although there is a markup/markdown included in the price).

An investment account at Etrade is free to open, free to close, and carries no on-going fees, like inactivity, annual, or low-balance charges.


What Etrade Does Charge For


There is a $2 fee for each paper statement that is mailed out. The broker does provide some exceptions to this rule. If you place at least 10 equity trades per month, you can receive hard copies at no charge. Also, if you have at least $20,000 with the Etrade family of companies, you qualify for free paper statements.

If you execute a trade over the phone with a living, breathing agent, you have to pay an extra fee for this service. On top of the regular $0 commission, Etrade imposes an additional $25.

The broker’s best trading software, Etrade Pro, is still available. However, unlike the old OptionsHouse platform, Etrade Pro requires 30 trades per quarter or a balance of $250,000.

Mutual funds have the same policy. If the fund is on the broker’s NTF list, there is a $49.99 charge if the fund is sold in less than 3 months.

Although IRA’s at Etrade have no regular fees, there are several events that will trigger one-time charges. An early withdrawal (before age 59½) will cause a $25 ding. This includes withdrawals that are approved by the IRS.

Another IRA fee is removing excess contributions. This one is also $25. Finally, a recharacterization costs $25. A recharacterization is when you convert a Roth IRA back to a traditional account.

Mandatory company actions, like stock splits and mergers, cost $38. Because you have no control over these types of events, this is a rather disappointing charge.


Etrade Fees vs Competitors





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Etrade Monthly and Inactivity Fees


Etrade does not charge monthly or inactivity fees on all of its brokerage or IRA accounts.



Etrade Commissions


ProductPrice
Stocks and ETFs $0
Stocks and ETFs broker assisted $5
Options $0.65 per contract ($0.50 if making 30+ trades per quarter)
Mutual funds $19.99
Futures contracts $1.50 per contract, per side + fees
Fixed Incomemarkup or markdown and any transaction fee will be included in the price quoted
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, fixed income, options, ETFs
Etrade minimum deposit to open account $500 for a non-retirement account, $0 for a retirement account, $2,000 for a margin account



Etrade Overview


Etrade is a discount brokerage that offers a full range of retirement accounts, low commissions and fees for trades, and many free services and resources. Etrade makes available to investors a wide range of IRA options.

Besides executing trades, most online brokers offer useful amenities such as real-time quotes, proprietary trading platforms, news and research services, portfolio management and tracking tools, and mobile apps for trading on the go.

Etrade offers a high quality, fully integrated trading platform called Etrade Pro for active traders. Relatively new, and designed for the less active trader, is Etrade 360. It provides "the ultimate one-page website investing experience," according to the Etrade website. Etrade 360 combines account and portfolio tracking with news and information, real time quotes, retirement planning calculators, and other features, as well as the ability to place trades with a few mouse clicks.

Research and education is another area where Etrade supplies useful information and training to IRA investors. Retirement planning calculators help individuals estimate how much they'll need to save in the future to reach retirement goals. Education on the variety of investment options allowed in IRAs helps investors understand where to allocate their retirement plan assets to maximize their returns and minimize their personal risk. Etrade offers a wide variety of interactive demos and tutorials, live or on-demand webinars, educational videos, and exclusive market commentary.


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Pricing


Commissions are what most investors emphasize when evaluating online brokers. But an individual should consider the types of investments he or she intends to buy and sell when determining the best commission structure to look for in a broker. Some brokers offer extremely low rates for options trading, but their stock trading commissions might be higher than average. Other brokers may offer certain mutual fund purchases commission-free, but charge for other mutual funds higher than average commission.

Some companies tout low prices on conditional orders or combination trades such as buying a stock and simultaneously writing a call option on that stock (a "buy/write"). Still other brokers offer low commission costs across the board, but make up that difference with higher than average custodian fees or unique fees not charged by their competitors. An investor should carefully consider the securities he/she trades along with the frequency of those trades. Those factors may make a difference in overall costs of investing with one brokerage instead of another.

The following chart lists Etrade's commission structure, fees, and other requirements, and compares it to the price range found with the other major online discount brokers as they relate to IRAs. There are no major hidden fees at Etrade that investors should worry about.


Service, Commission, or Fee Range of most-popular brokers Etrade pricing Comparative cost vs. range for Etrade
Minimum Investment to Open an IRA $0-$2,500 $500 Lower than median
Fee to Open an IRA $0 $0 Lowest
Annual Custodian Fee $0-$20 $0 Lowest
Market order stock trade $0 $0 Lowest
Limit order stock trade $0 $0 Lowest
Option–1-contract $0.50-$0.65 $0.65 Highest
Option—10-contracts $5.00-$6.50 $6.50 Highest
Mutual Fund— No load funds $0-$49.99 $0 Lowest
Mutual Fund— Transaction fee funds $9.95-$49.95 $19.99 Lower than median
US Treasury securities $0-$25 $0 Lowest
Corporate Bonds or similar $1-$38 $1/bond, minimum $10 Lower than median


Source: NASDAQ website and individual brokerage websites. Comparative brokerages are: Ally Invest, TD Ameritrade, Schwab, Fidelity, and Vanguard.

As you can see, Etrade is competitive with the other large online brokers. None has the absolute lowest commissions on every type of trade. All charge less in commissions than full-service, brick-and-mortar brokerages. Some charge higher fees for administrative services than Etrade.


Disclaimer


Etrade hidden fees listed here are as of 2020 and are subject to change. For the most recent information on Etrade hidden charges visit their website.


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