TD Ameritrade 300

Etrade Hidden Fees


2022 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 Etrade. 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.

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


Broker Review Promotion
Offer
Stock/ETF
Commission
Mutual Fund
Commission
Maintenance
Fee
Annual IRA
Fee
TD Ameritrade $0 commissions + transfer fee reimbursement. $0 $49.99 ($0 to sell) $0 $0
Ally Invest Up to $3,000 cash bonus + $0 commission trades. $0 $9.95 $0 $0
WeBull 12 FREE stocks valued $34-$30,600 give-away at Webull. $0 na $0 $0
Etrade Get zero commission on stock and ETF trades. $0 $19.95 $0 $0



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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 $0 for a non-retirement account, $0 for a retirement account, $2,000 for a margin account




Etrade advertises heavily, but investors should be aware that the broker has some weaknesses. For example, the broker's mutual funds commission is $19.99, while Ally Invest charges only $9.95 and Firstrade is at $0 per trade.

Etrade also has a total of 7,400 funds available for purchase. WellsTrade and Ally Invest offer more than 12,000.

Etrade's advanced platform requires at least 30 option or stock trades every 90 days, or an account balance of at least $250,000. Those are some pretty steep requirements. Schwab's advanced platform, by comparison, only requires an account balance of $1,000. Zackstrade has no frequent trader requirements at all for its very sophisticated trading platform.

Etrade does have a mobile app for its clients. However, they have to pay for live streaming of CNBC. Other brokers, such as Schwab, Fidelity, and TD Ameritrade, offer video business news free of charge. The charting on Etrade's mobile app has ten technical indicators, including volume. TD Ameritrade's thinkorswim mobile app has around 400 technical studies.

After you go through Etrade login screen, you'll see that there is no trading ticket at the bottom of Etrade's website. Other brokers, such as Firstrade and Merrill Edge, do have a trading system that appears at the bottom of a browsing window. This technology makes security research and order entry more convenient.

While Etrade does offer Individual Retirement Accounts, the broker imposes a $25 fee in several situations. For example, there is a fee for removing excess contributions. There is another $25 charge for early withdrawals, even when the debit is within IRS rules. A final $25 fee is assessed for recharacterizations. Other securities firms, such as TD Ameritrade and Schwab, do not have any IRA fees.

Etrade customers can open an FDIC-insured deposit account with the broker's affiliate Etrade Bank. However, accounts with balances below $5,000 don't receive ATM fee reimbursements. Other securities brokers, such as Schwab and Fidelity, offer ATM fee refunds with no strings attached. The Etrade cash account is a separate bank account. Some customers may prefer to have checks and a debit card simply attached to a regular brokerage account. Merrill Edge and TD Ameritrade have this type of arrangement.

Investors who would like in-person service might be better off with another firm. While Etrade does operate a network of local branches, there are only 30 locations. By comparison, Fidelity has 180 branches, Schwab has 325, and TD Ameritrade has over 450.


Disclaimer


Etrade hidden fees listed here are as of 2022 and are subject to change. For the most recent information on Etrade hidden charges visit their website.


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About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.