E*TRADE Review 2025

E*TRADE E*TRADE is for investors interested in low-cost stock, ETF, and options trading. E*TRADE's Core Portfolios may be a good choice for passive investors, but infrequent options traders will pay more for options contracts.

Business Insider's personal finance team compared E*TRADE to the best robo-advisors and found it to be an industry leader in educational resources.

Pros and Cons

E*TRADE Pros

• $0 account minimum to open an account
• A wide array of account and investment options (includes IRAs, mutual funds, options, and IPOs)
• Commission-free stocks, ETFs, and mutual funds
• Core portfolios, robo-advisor available
• Paper trading available

E*TRADE Cons

• $500 minimum for automated investing
• Infrequent investors may end up paying more for options contracts
• You can't invest in crypto directly with E*TRADE

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E*TRADE Overview

E*TRADE is an online brokerage that's now part of Morgan Stanley. It offers various account and investment options geared mainly toward hands-on investors and small businesses.

It has no account minimum and provides commission-free trades on US-listed stocks, ETFs, and mutual funds. You can also trade bonds, CDs, IPOs, and futures.

If you're new to investing, E*TRADE offers a wide range of interactive charts, over 100 technical studies, market trackers, and beginner-focused guides. This makes E*TRADE a good option for beginners despite its high $500 minimum for robo-advisory services.

Other tools and features provided to E*TRADE customers include paper trading, a portfolio analyzer, and a rebalancing tool. It also allows margin trading with its array of margin calculators and analyzer tools. However, E*TRADE doesn't offer tax-loss harvesting.

Ways to Invest with E*TRADE

Let's unpack the E*TRADE platform and its investment services.

E*TRADE Self-Directed Brokerage Accounts

E*TRADE's self-directed brokerage account for active investors is a no-fee flexible invemtent account with no account minimum.

Users get access to intuitive trading tools and resources such as timely research, market analysis, interactive charts, investing tutorials, and multiple platforms including its web and mobile platforms.

Core Portfolio Automated Accounts

If you're a passive investor or fan of automated advice, E*TRADE's Core Portfolios could be right for you. Though more expensive than the standard brokerage account, Core Portfolios provides personalized, automated portfolio management.

You'll need at least $500 to set up the account and pay an asset-based annual fee of 0.30%. The Core Portfolios account draws from the combination of automated technology and oversight from E*TRADE experts.

It's robo-advisor only invests in ETFs. The brokerage uses asset classes that strive to generate high returns over the long haul (usually a minimum of three years). Choose from

• Socially responsible ETFs: Funds that invest in companies with social, governemence, environmental values
• Smart beta ETFs: Funds aimed to outperform the stock martket

E*TRADE selects ETFs by analyzing historical performance, liquidity, tracking errors, and expenses. You can also select specialized portfolios for goals such as wealth-building, retirement-saving, or buying a home.

E*TRADE Retirement Savings Accounts

With E*TRADE, you can take advantage of several IRAs, or even roll over an existing 401(k) or employer-sponsored retirement plan hassle free. The brokerage also has beneficiary IRAs, E*TRADE Complete IRAs, and IRAs for Minors.

An E*TRADE Complete IRA is a retirement account for investors older than 59 ½ looking for greater flexibility, free online checking, and ATM/debit cards. You must have an existing E*TRADE IRA to open.

E*TRADE Custodial Brokerage Accounts

E*TRADE gives minors access to investing through its custodial brokerage accounts. Parents or designated custodians can manage these accounts, which come with $0 commissions, tax advantages, and investment education tools.

E*TRADE Coverdell ESA

The E*TRADE ESA allows you to set aside funds for your child for kindergarten through graduate school. Make annual contributions of up to $2,000 with the account and use federal tax-free withdrawals on qualified education expenses.

You may sign up for this account if your income is below $110,000 (for single filers) or $220,000 (for joint filers).

E*TRADE also offers minors investing access through its custodial brokerage accounts. Parents or designated custodians can manage these accounts, which come with no commissions and tax-deferred savings.

E*TRADE Client Base

E*TRADE's services are available to active and passive investors, registered investment advisors (RIAs), stock plan participants, and stock plan administrators.

Regarding RIAs, E*TRADE serves these professionals two ways — through Liberty, its custodial platform, and the E*TRADE Advisor Network. The Liberty platform allows advisors to manage clients' accounts, and the E*TRADE Advisor network uses referrals to connect independent advisors with prospective clients.

E*TRADE Fees

An E*TRADE self-directed brokerage account, including retirement account options, doesn't require any account minimum to start investing. However, E*TRADE Core Portfolios require a $500 minimum to open an account.

Bond trades will cost you $1 per online secondary trade, and E*TRADE charges up to $0.65 per options contract ($0.50 if you make 30 trades per quarter). Futures contracts are $1.50 per contract.

Core Portfolios have a flat annual advisory fee of 0.30%.

E*TRADE Trustworthiness and Security

E*TRADE is a fairly trustworthy and secure platform equipped with encryption and network defense systems, firewalls, two-factor authentication, fraud protection, 24/7 customer service, and a dedicated fraud protection team.

The brokerage's security and customer service features don't go above and beyond, but do match the industry's standard.

Despite being a popular brokerage backed by globally recognized financial service firm Morgan Stanley, E*TRADE has a trustworthiness rating of F from the Better Business Bureau.

The BBB lists the reason for the low rating for failure to respond to a high number of complaints filed against the business and multiple unresolved complaints. However, the bureau also says on its website that its ratings don't guarantee a company's performance or reliability.

On February 1, 2024, a lawsuit filed on behalf of Sergey Burmin and Kereneth W. Luke alleged that E*TRADE and parent company Morgan Stanley underpaid interest rates on cash holdings in users' retirement accounts as much as 500 times under the federal funds rate, which could create a conflict of interest between account holders and the bank. This case is still pending. E*TRADE and Morgan Stanley have not responded to these allegations. 

The Financial Industry Regulatory Authority (FINRA) claimed that E*TRADE did not have adequate safeguards to prevent manipulative trading on stocks and futures from December 2016 to 2021. In 2022, E*TRADE agreed to pay FINRA $350,000 to settle the claims. 

Google Play: 4.7/5

Apple Store: 4.7/5

Core Portfolios Account Setup and User Interface

With Core Portfolios, the account setup process is pretty simple. E*TRADE asks you questions about your goals and preferences, and its algorithm creates a personalized ETF portfolio that aligns with your risk tolerance.

The first question — which asks about your investing goals — gives you three options: simply build wealth, save for retirement, or target a specific goal (you can adjust your goals, investment timeline, or risk level anytime). Core Portfolios then asks how much you plan to invest initially.

To learn more about your risk level, E*TRADE provides a graph showing the hypothetical returns of a $100,000 investment.

E*TRADE

As indicated above, the best-case one-year returns for a $100,000 initial investment would be roughly $124,000.

E*TRADE Alternatives

Here's how E*TRADE compares to other industry leading robo-advisors.

E*TRADE vs. SoFi Invest

Similar to E*TRADE, SoFi is featured on our list of top robo-advisors for its competitive fees and powerful trading tools. Both platforms are suitable for active and passive investors, offering a wide range of stocks and investable funds.

SoFi is the stronger option for professional oversight and guidance, as it provides complimentary CFP access and options trading. Its robo-advisor also has a much lower minimum requirement and no management fees.

E*TRADE is also the better option for crypto trading (E*TRADE offers crypto funds).

SoFi review

E*TRADE vs. Betterment

Betterment could be an even better (and less expensive) option if you're solely set on automated advice. Not only does its digital plan have a $0 minimum requirement and 0.25% fee, but it also offers socially responsible portfolios, crypto portfolios, and multiple other options. 

E*TRADE caters to more types of investors, though, since it gives you a wider range of account options and investment types. You'll be limited to automated investing with Betterment. 

Betterment review

E*TRADE FAQs

Why You Should Trust Us: How We Reviewed E*TRADE

We examined E*TRADE investing app using Business Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 1 and 5. 

Investing platforms offer multiple assets, trading tools, fees, and other resources. Some investing platforms are better for more advanced or active investors, while others may better suit beginner and passive investors. E*TRADE was evaluated with a focus on how it performed in each category.

Business Insider's Overall E*TRADE Rating

Tessa Campbell

Investing and Retirement Reporter

Tessa Campbell is an investing and retirement reporter on Business Insider’s personal finance desk. Over two years of personal finance reporting, Tessa has built expertise on a range of financial topics, from the best credit cards to the best retirement savings accounts.ExperienceTessa currently reports on all things investing — deep-diving into complex financial topics,  shedding light on lesser-known investment avenues, and uncovering ways readers can work the system to their advantage.As a personal finance expert in her 20s, Tessa is acutely aware of the impacts time and uncertainty have on your investment decisions. While she curates Business Insider’s guide on the best investment apps, she believes that your financial portfolio does not have to be perfect, it just has to exist. A small investment is better than nothing, and the mistakes you make along the way are a necessary part of the learning process.Expertise: Tessa’s expertise includes:

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Education: Tessa graduated from Susquehanna University with a creative writing degree and a psychology minor.When she’s not digging into a financial topic, you’ll find Tessa waist-deep in her second cup of coffee. She currently drinks Kitty Town coffee, which blends her love of coffee with her love for her two cats: Keekee and Dumpling. It was a targeted advertisement, and it worked.

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Elias Shaya

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Elias Shaya is a Compliance and Operations Associate on Business Insider's personal finance team in New York. He collaborates with the editorial team to provide timely, accurate, and impartial financial advice to readers ExperienceElias is a point person on multiple personal finance topics, from credit cards to investment products. He ensures editorial content is transparent and accessible through clear and precise language while also complying with regulatory and partner marketing guidelines. Since joining as a compliance fellow in 2022, Elias has played a crucial role in the team’s compliance efforts, ensuring no stone is left unturned. His close attention to detail and broad knowledge of various complex financial subjects help minimize risk for partners while protecting editorial independence so readers get the best possible advice. Expertise: Elias’ expertise includes:

• Credit cards
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Education: Elias graduated from the College of Staten Island with a degree in International Business.When he’s not reviewing or updating personal finance topics, Elias enjoys traveling, comedy shows, and binge-worthy TV shows.

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