Can I Day Trade on E*TRADE?
E*TRADE is well known for providing a quality trading experience to investors of all kinds. Day traders gravitate to the broker for its professional-level investment tools, low fees, fast execution, and selection of tradable assets. Are there any restrictions on day trading other than PDT? Continue reading to learn more about day trading at E*TRADE.
E*TRADE Day Trading
There are many things to like about day trading at E*TRADE, but there are a few important details to know about as well.
First, E*TRADE offers traders all the advanced tools they would need for successful day trading. Multiple platforms, good market data options, secure accounts, and access to several asset classes. No matter what type of day trader you are, E*TRADE will have something for you.
E*TRADE Day Trading Tools and Features
No matter which trading platform you decide to use for day trading, you can enjoy several of E*TRADE’s tools and features. Some of the most useful are:
- Fast executions
- Hotkey support
- Advanced charting
- Level 2 data
- Multiple platforms
- Expansive selection of tradable assets
- Paper trading
Available Securities for Day Trading at E*TRADE
E*TRADE offers many ways to day trade. Depending on your account balance, your appetite for risk, your margin permissions, and your expectations, you can find an investment vehicle that suits your trading style.
For day trading, you can trade stocks, ETFs, options, futures, and cryptocurrency. The PDT rule applies to stocks, ETFs, and options.
Other securities available for longer term strategies are mutual funds, bonds, CDs, and global securities.
Day Trading Rules and PDT on E*TRADE
Before you can start day trading at E*TRADE, or any other broker for that matter, you should know about restrictions that you may face.
E*TRADE PDT Rule
The most restrictive rule for many aspiring day traders is the Pattern Day Trading (PDT) rule. Every broker licensed in the United States is obliged to follow the PDT rule. Here’s how it works:
Pattern Day Trading is the act of placing 5 round-trip trades in a rolling 5-day period. Traders with less than $25,000 in their brokerage account are not allowed to exceed the 5-trade limits.
Day traders must follow the PDT or be faced with a 90-day hold on the trading account. To lift the hold, you can deposit funds to meet the minimum account threshold.
Other Day Trading Rules on E*TRADE
Other day trading restrictions to be aware of are account minimums and the need for margin if you plan to sell securities short.
The account minimum to trade on margin is $2,000, and that amount can be comprised of both the account balance and the value of any securities that you hold in your account.
Better Broker For Traders
For day traders, a great alternative brokerage firm is Webull.
It has a number of advantages over E*TRADE: better margin rates, virtual and crypto trading,
$0-commission on options trades, and high cash interest rates.
Webull Promotion
Visit Webull Website
E*TRADE Day Trading Platforms
There are several ways to place day trades at E*TRADE. You can use the professional trading platform, the browser trading platform, the E*TRADE website, or the mobile app. The ‘best’ trading platform for you depends on your needs and expectations.
E*TRADE Pro is the desktop software, and it is the most robust trading platform available. It comes with all the necessary features for a day trader, including advanced charting, fast order entry, trade metrics, hot key trade executions, DOM, and a built-in screener.
The browser-based platform is also quite capable. It is a lighter version of the desktop solution and can be loaded on any modern browser as long as there is an internet connection.
Order entry on the E*TRADE website is also possible for day traders, although the lack of advanced charting and fast execution tools would make certain day trading strategies a bit difficult.
The mobile app offers watchlists, basic charting, Level II quotes, order entry, account management options, and market-related information to keep traders up to date.
E*TRADE Promotion
Visit Etrade Website
E*TRADE Day Trading Fees and Commissions
Another attractive aspect of day trading at E*TRADE is the effort it puts into keeping fees and commissions low. E*TRADE is very competitive and does a good job keeping trades cost-effective. This is important for day traders, of course, and any other investor that places a lot of trades.
| Product | Price |
|---|
| 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 Income | markup 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 |
| Fees | Etrade fees |
Updated on 2/3/2025.
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.
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