Etrade review - is this broker right for you?
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Etrade review - is this broker right for you?

8,3 / 10

Etrade, one of the largest brokerage companies serving investors in the US securities market. It is a large holding that includes divisions providing services for transactions, position accounting and even investment banking.

All trading involves risk. Only risk capital you’re prepared to lose.
Etrade review - is this broker right for you?
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A general view based on Etrade broker reviews

Etrade, one of the largest brokerage companies serving investors in the US securities market. It is a large holding that includes divisions providing services for transactions, position accounting and even investment banking.

E*trade offers several platforms to suit a wide range of investors.

The flagship platform, ETrade.com, has been redesigned to make it easier to navigate.

After the acquisition of OptionsHouse several years ago, the company also began offering high-quality options services.

The broker is suitable for active traders and investors with more than $100,000 in trading assets.

Important Facts

1. Minimum account size: 500$.

2. Commissions: $6.95 per trade for equities and ETF trading

3. First online trading was launched in 1983;

4. The firm employs over 4,000 people;

5. There are 30 branches of the firm across the US.

Quite appealing is the offer of a cash reward after you have funded your account. You should agree that this offer is quite strange. Most likely, it is intended to "force" traders to open a trading account at E*TRADE.

The official website of the company is entirely English. There is no alternative language version. The web-resource content cannot be translated into Russian, German or Italian. That is why the company is most probably aimed more at American clients. Of course, if you have a good command of English, there should be no difficulties. Traders without experience are encouraged to explore the "Knowledge" section.

Let's start by looking at where the company is located. It says it has official registration in the United States, and also offers various offices located around different cities in the United States.

Particularly noteworthy is the information about the regulators. The trader is not shy about saying that its activities are supervised by FINRA / SIPC.

Important: FINRA is a major independent regulator of the US financial markets, SIPC is an investor protection corporation.

It also claims to have no less than 50 different licenses, which confirm the legitimacy of its forex services. Only there is one big "but". The official website could not find scans of the documents. Therefore we can say with 100% certainty that E*TRADE is a common swindler.

Main page Etrade
Main page Etrade

In the "Contacts" section you can see the following information:

Phone numbers and online chat, which promise 24/7 support for traders;

links on Facebook, Twitter, LinkedIn, Instagram;

a channel on the video hosting site YouTube. Only the information on it has not been updated for half a year.

Customers can also communicate with the administration of the website through a created personal account. It is allowed to send secure private messages.

Registration on the website is a little bit different from other similar projects. The procedure takes about 10-15 minutes. First you need to choose the right type of account. Then you have to go through 5 mandatory steps. One of the mandatory ones is identity confirmation (verification).

The first thing that catches your eye is the proprietary trading platform. It offers interactive charts, rapid assessment of possible risks, in-depth analysis of assets and much more. Traders are allowed to trade a variety of instruments: futures, options, commodities and others.

A special feature is the custodian account. According to which the account can be opened by persons under the age of majority.

OptionsHouse expands the trading possibilities of E*TRADE

Trading at the broker

After creating their account, traders are offered a wide range of different tools and opportunities.

Types of account
Types of account

For example, traders can stay online or launch the Power E*trade desktop platform.

The E*trade Pro terminal is also available for download. The site is designed for novice investors.

As for the Power E*trade platform, options traders and those who prefer quality charts can work here.

E*trade Pro is for those who frequently open positions.

All platforms offer real-time information. You can place orders directly in the chart and then monitor open positions here.

Trading technology

The broker offers a variety of tools for controlling orders and provides high speed and quality execution.

The way in which the broker routes the order determines whether or not the trader will be offered the best price at the time the order is placed.

This approach (selling at a price above the 'bid' and buying at a price below the 'ask') is an important aspect of working with E*trade, as the broker constantly looks at different market nodes to get higher speed execution and improve quality.

The technology offered by the broker keeps track of the best possible prices for execution in the market.

However, statistics show that the broker does not even rank among the industry's mid-tiers in this regard.

Usability

There are some settings available to clients, such as preferential accounts and market information.

It is also possible to customize other information resources in the order defined by the user. The website is constantly being upgraded to improve its usability.

Mobile technology

All of the broker's platforms have their own mobile versions. Power E*trade offers futures trading, including a ladder and additional analysis tools, as well as charts.

There are their own tracking lists, which are offered in all platforms.

A wide range of trading assets is also offered, including mobile versions. Working with the mobile applications is easier than with the web platform.

Etrade App
Etrade App

News and analysis

The broker offers a special analytics feature, which also enables the trader to learn directly while working.

The best tool for options traders is the Power E*trade platform, on which an investor can analyse TradeLab's trading ideas.

This provider offers relatively uncomplicated analytical techniques and gradually progresses to more complex ones as one scrolls down the page.

The Power E*trade platform also offers work with StrategySEEK.

This is a visual tool that helps its clients to find trading opportunities by using market forecasts, depending on how much the trader is prepared to invest.

Each strategy is considered in terms of portfolio risk, system usage and overall risk.

The dedicated LiveAction widget allows clients to scan the markets based on specific technical patterns, using real-time information.

Portfolio analysis and reports

On the Power E*trade platform, traders can view their portfolio risks and asset allocation.

There is also an option to manage an account or multiple accounts within a group.

Risks are viewed in terms of price and volatility to show investors vulnerabilities to market movements.

However, the investor does not have the option to consolidate assets held with other financial institutions to get a complete picture of all the user's assets.

Customer service and assistance

The company has improved its support service, including a telephone helpdesk.

Customers with large accounts can look forward to support benefits, additional analytical features and professional asset management.

The special Complete Protection Guarantee feature protects against any fraudulent activity on the account and offers an extra layer of security for software on demand.

Training

The broker's education centre is available to all users, whether they are clients or not.

Training is offered in a variety of formats and in different areas, such as investing, retirement savings and trading.

Commissions

The broker offers standard rates of $6.95 per share, which is above the market average.

Clients opening more than 30 trades per quarter or with a deposit of more than $250,000 can expect a commission of $4.95.

The margin rate is higher than what other brokers offer.

Read also Lightspeed broker review

What you need to know when working with the company

Integration with OptionsHouse technology allows the broker to offer customers option analysis and trading on the Power E*trade platform.

The website is constantly being updated and this process will continue in the future.

The broker offers good conditions for option trading and analysis, including the use of a mobile platform.

However, less active traders who prefer a passive approach to investing are likely to find the terms not very attractive.

Comparing E*trade Broker

The broker offers benefits such as an excellent mobile platform and a wide range of educational material.

It's a good choice if you're just getting started in the world of finance and investing.

Advantages Disadvantages
E*Trade Power's platform offers a wide range of options trading. Investors will need to use multiple platforms to deal with all instruments
Mobile applications offer the ability to trade futures. Commissions and fees are quite high
Broker offers high quality third party analytics. Collateral rates are also quite high
Wide range of stock and options platforms; transaction fees become high when positions are increased or decreased;
the best mobile app among US brokers; limited choice of routing options.
limitless possibilities for analysis;
built-in robo-advisor, retirement planning and financial advice;
low transaction fees, allowing you to lock in orders;
new accounts get up to 600 free trades.
SUMMARY
RECOMENDED
Easy to use
10 / 10
Reputation
6 / 10
Minimizing Fees
7 / 10
Customer support
7 / 10
Deposit/withdrawal
10 / 10
Build-in Analytics
10 / 10
8,3
PROS
+
Forex
+
Binary Options
+
Digital Options
+
Stocks
+
Crypto
CONS
-
Investors will need to use multiple platforms to deal with all instruments
-
Commissions and fees are quite high
-
limited choice of routing options
-
Collateral rates are also quite high
-
transaction fees become high when positions are increased or decreased
Broker: Etrade
Founded in: 1983
Minimum deposit: 500$
Demo account: Has not
Commissions & fees: $6.95 per trade for equities and ETF trading
Regulation: FINRA / SIPC
Visit official website
Broker’s statistic
Broker: Etrade
Founded in: 1983
Minimum deposit: 500$
Demo account: Has not
Commissions & fees: $6.95 per trade for equities and ETF trading
Regulation: FINRA / SIPC