What Is Etrade & How Does It Work?

If you’re interested in trading securities like stocks, future, and options, be sure to check out Etrade! This online stock brokerage firm uses intuitive design to help the user breeze through trading with no problems. The best part about this is that it can all be done without interacting with a broker.

If you’re interested in what more Etrade has to offer, continue reading down below!

What is Etrade?

Etrade is an online stock brokerage firm. And just like any other stock brokerage firms, they offer customers the chance to buy and sell securities such as stock, future, options, mutual funds, bonds, and forex.

Their online platform is easy to use and beginner friendly. It allows the user to track the performance of each stock and use in app tools to help create predictions.

They also provide a mobile app to do all this on the go.

ETRADE’s fees are on the average side for the online options trading industry. You pay $9.99 for the standard trade fee plus $0.75 per options contract, but the $9.99 reduces to $7.99 when you make more than 150 trades per calendar quarter.

Compared to other brokerage firms, Etrade is cheaper than many other options brokers like Charles Schwab, TD Ameritrade, and Fidelity.

How Does It Work?

Like other trading platforms, you can fund your account by doing an electronic transfer from your bank or other financial institution, make a deposit into an ETRADE branch, or send a check via snail mail.

Keep in mind the Etrader requires a $500 minimum deposit in order to open an account with them.

Benefits of Etrade

1. To start off with, this platform is Beginner Friendly. If you’re new to the stock trading game, this platform may be one of your options. They have an easy-to-navigate website with a great built-in education investor center. You can decide to do trading yourself or simply reach out to a broker. All this makes ETRADE an easy-to-use online trading platform for even the most novice of investors.
2. If you prefer a Hands-Off trading experience, Etrade has you covered through their capital management solution. This offers you a financial expert to help manage your portfolio. Their objective is to create and maintain a balanced portfolio that is persistent with your goals, risk, and tolerance. Keep in mind that in order to receive this hands-on management you’ll need a minimum account balance of $25,000.
3. Their Tools provides traders with all the necessary information required for trading.  You’ll receive real-time streaming quote tool, Interactive charts, and even tax advice. Be sure to take advantage of all their tools to get the best trading experience.
4. Even though Etrade is regarded as an online stock brokerage firm, the amount of services they provide is impressive as it extends past the spectrum of stock trading. With Etrade, you’ll be able to also acquire bank services like checking and savings accounts and even IRA accounts. To top it all off, you can even get a mortgage from Etrade.
5. Luckily, Etrade takes Security very seriously. Everybody wants to sleep knowing their financial information is secure. ETRADE has a security-conscious reputation with ETRADE’s Symantec Virtual Digital Security Token, where you can receive a keychain-sized device that generates a 6-digit new personal access code every 60 seconds.

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Pros

• ETRADE’s website is easy to use and its research, investment, and a trading tool are ideal for beginners placing basic trades and experienced traders working on complex orders.
• Offers a reasonable minimum deposit of $500 requirement which opens the platform to investors of all sizes and levels of experience.
• You can operate as an investor using financial consultant assistance, or have your portfolio professionally managed.

Cons

• More expensive trading fee than most online brokers.
• High commissions for infrequent traders.
• Active-trading oriented with perhaps only a few getting the benefits of lower fees.

Bottom Line

If you’re new to trading or you’re just looking for a new platform to trade on, Etrade is definitely worth consideration. Take advantage of the tools they offer to all their customers, and if you can afford it, use their Capital Management Solution where experts step in to help you along the way.

Just keep in mind that they require a $500 minimum deposit in order to open a broker account with them. If you love reading posts like this, be sure to check out more on HMB! You can also check out our posts on Etrade Promotions and our compiled list of the Best Brokerage Bonuses!

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