TD Ameritrade 300
Etrade rating

Etrade Pros and Cons

Etrade pros and cons, benefits and perks offered, and complaints. Is Etrade good or bad? Etrade individual/joint account advantages and disadvantages for 2020.

Etrade Pros

Large broker: Etrade is one of the five largest online brokers in the U.S. with millions of customers

No inactivity fees: The firm does not charge account maintenance or inactivity fees

Great trading tools: Etrade offers powerful trading tools and an advanced trading platform for active traders called Etrade Pro (review). Unfortunately, Etrade Pro is only available for free to clients who execute at least 30 stock or options trades during a quarter

No IRA fees: There are no individual retirement account fees, and no minimums with electronic statements and confirmations

Low minimum to open: Most accounts could be opened with low minimum deposit - $500 for a non-IRA account, $0 for an IRA account, and $2,000 for a margin account

Investing advice: One of the main Etrade benefits is that it offers clients an investing advice by phone or in person (though, unlike TD Ameritrade, the number of branches is very small)

No surcharges: The brokerage does not impose additional commission on large orders or penny stock trades

Investment research: Etrade offers investment research information from S&P, MorningStar, Credit Suisse, and Smart Consensus

Thousands of mutual funds: Another one of Etrade pros is a very broad selection of products: 8,000 mutual funds, all ETFs, over 30,000 bonds, over 1,300 no-load, no-transaction fee mutual funds as well as 90+ commission-free ETFs (Firstrade offers 700!)

Etrade Cons

High commissions: The main Etrade con is that the firm charges high commissions on mutual funds: $19.99 per transaction which is higher than $9.99 charged by Ally Invest and $0 at Firstrade.

High margin rates: Another major Etrade complain is extremely high margin interest rates on borrowed cash

ECN fee: There is a $0.005 per share surcharge on extended hours trades (ECN fee) which many active traders will not like

Etrade Pro availability: Etrade Pro platform is available at no charge only to customers who execute at least 30 stock or options trades during a calendar quarter

Etrade Trading Tools

One of the major Etrade benefits is 18 powerful trading tools, including:

- Chart Patterns: up to twenty stocks ranked by how closely they meet your interests and spending limits.

- XpressCharts®: mix and match technical studies until you find a picture that best suits you.

- The Dragon: lets users scan the market for stocks and options that match chosen criteria.

- StrategyScan: allows users to find a strategy that aligns with their investing goals, trading experience and risk level.

- Chains: all-in-one screen for real-time quotes, intrinsic and time values, and complex spread construction.

Active traders get free access to Etrade Pro - the firm's direct-access desktop trading platform. Etrade Pro lets users find the top performing sectors, industries, and stocks in just three clicks. Customers can also watch fully integrated live-streaming CNBC right from their desktop.

Etrade trading screens sometimes don't show the updated price of the security being traded, and that could lead to buying or selling at something other than the intended execution price. Users should double check the price with some other tool.

The company has done a great job in making everything on screens customizable: users can just drag and drop anything to the desired place.

Another Etrade advantage is great mobile application for investors wanting to trade or access their account from the smart-phone. Among other features, users can track the markets with streaming real-time quotes as well as securely buy, sell and place conditional orders with just a few taps.

Etrade Pros Cons

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Etrade Charge Per Trade To Buy/Sell Stocks

Etrade commission to buy stock or ETF is $0 per trade

Etrade commission to sell stock or ETF is $0 per trade

Etrade fee to buy mutual fund is $19.99 per transaction

Etrade fee to sell mutual fund is $19.99 per transaction

Etrade doesn't charge fees to buy and sell NTF mutual funds

Etrade Bonds Review

At Etrade clients 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 pros and cons

Etrade 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 Cons and Pros Review

Read full Etrade Review

Overall, our experience with Etrade has been positive. Etrade provides great resources like stock snapshot pages, delivers a quick and easy trading experience, and keeps tax records organized. However, the pricing is on the higher side and is one of the major Etrade cons and that could deter many investors.