It's true that E*Trade focuses more on investors that are self-directed.
However, the company also extends its services to business and advisory services as well. It provides investors with a variety of options for trading along with a rich array of investment and analysis tools which further increases their chances of profit.
Continue reading this E*Trade review to find out the great features E*Trade offers and why they should be your online broker.
Types of Accounts Offered By E*Trade
Once you open an E*Trade account you have the option of selling or buying online stocks, international stocks, options, bonds, futures, and mutual funds.
This is the most popular kind of account because of the vast investment choices it provides. You have the option of trading stocks, futures, and options. Additionally, you can also trade engage in margin trading to increase your buying power. The account comes with more than 30,000 bonds, 8000+ mutual funds, and assets of fixed income.
Apart from the investment options, you also get guidance, insight as well as independent and unbiased research to help you in making smarter decisions. The exclusive All-Star and Top 5 lists helps in discovering better investment opportunities. The Investing Insights Center provides investment suggestion based on real market conditions, and the Portfolio Analyzer, gives you an overview of your investment. An investment fee of $500 is required to open this sort of account and there are no service fees..
This is a retirement account which provides you with a wide range of investment opportunities. Instead of having numerous retirement accounts with a handful of investment choices, you should choose the Rollover IRA which give you control of all your assets along with intuitive technology and unlimited support. As a result, you would be the sole controller of your retirement account. You also have the option of choosing from a vast range of bonds, stocks, mutual funds, options, IPOs, and ETFs.
Additionally, you have more than 2,700 mutual funds that have a no-load and no-transaction fee. With the Rollover IRA, investment is easier with the ‘easy to use’ mobile and desktop technology. You get to access exclusive ETF All-Star and mutual funds list, and with some help from the company’s financial consultants, you can come up with a better asset allocation plan.
E*Trade OneStop Rollover IRA:
With this account, you can transfer all of your assets from your retirement plan at your previous workplace. This account will assist you in staying on the right track when it comes to reaching your retirement goals. The account comes with a number of benefits, some of which are mentioned below. To open this account you would need $10,000 in assets that are invest-able.
You don’t need to pay trade commissions; a low annual advisory fee is required. However, service fees, fund expenses, transaction fees, and brokerage commissions might apply. All of the retirement assets will remain tax-deferred like all IRAs.
Additionally, your assets will also be invested in an expanded portfolio of either ETFs and mutual funds, or ETFs. You can access your account any time which means that neglecting all of the old retirement accounts will happen no more.
By transferring your account, you would be able to track the transactions, the performance, and the holdings through a supported mobile, or through any desktop.
The account makes retirement savings much easier by offering tax-deductible and tax-deferred savings.The establishment of this account is considerably much easier since it does not involve any account minimum or annual fee. However, it is important to know that service fees, fund expenses, brokerage commissions, and transaction fees might apply.
Apart from the benefits of a rollup IRA, the traditional IRA provides additional benefits. Firstly, you get to contribute annually, and the contributions you make might be tax-deductible. Earnings will also be tax-deferred until they are withdrawn at the age of 59 and a half.
One other benefit is the flexibility of the account because of which you can withdraw your assets without a penalty whenever you want whether it is for a huge medical expense, for buying a house, or for paying for college.
This is account is the most popular account used when saving for retirement. Despite contributions not being tax-deductible and having limits on income, the Roth IRA still comes with numerous benefits.
Withdrawal of contributions can be done anytime and is tax-free. Withdrawal of your earnings is also tax-free for accounts that are older than 5 years for individuals who are 59 and a half years and older. The policies are flexible and include the permission of withdrawing the original contributions without any penalty or tax, regardless of the reason.
Why Choose E*Trade?
There are numerous benefits that you receive if you choose to trade with E*Trade. This E*Trade review mentions some of these benefits below.
Lowest opening deposit:
The cost of opening up an account on E*Trade might have proved an hindrance to some investors. However, they have adopted a more convenient price which makes opening an account more affordable for investors with a limited funds.
Watch this short video explaining that $500 are enough to start with this company:
Outstanding features for banking:
Perhaps one of the best E*Trade features is the fact that all of the unused cash can be transferred to a savings account. With 0.40% of APY, the savings account with E*Trade pays almost four times what an average commercial bank pays and the account is insured by FDIC. The savings account doesn’t have an account fee, nor does it have any minimum balance requirement. The company also provides certificates of deposits, as well as checking accounts.
Detailed investment products:
The company’s list of the financial products is perhaps the most comprehensive list of any broker. Of course, there might be brokers that provide the client with a wider choice of a certain financial product like a mutual fund. However, E*Trade definitely has the best variety.
You have the option of funding your account with the typical brokerage products like mutual funds, bonds, and stocks and typical banking products such as savings and certificates of deposits. If you want, you also can take part in IPOs which usually are unavailable to average investors. All of this sums up to prove that E*Trade has greater options that any other typical broker.
E*Trade has an extremely user-friendly website, they also offer a number of free ratings and analysis, while the technical investors will surely enjoy the charts and the graphs.
Similarly, the education and the research center provide detailed information for the management of the portfolio, and for planning your goals.
E*Trade has one of the best dividend reinvestment plans which makes the addition of further shares extremely easy, and that too at a nominal cost. The DRIP’s can also aid you in accumulating wealth through compounding.
How E*Trade Makes Trading Easy:
E*Trade provides its investors with numerous tools which makes trading much simpler and easier, specifically for those new to trading and this has been proven by the various reviews on E*Trade.
Some of the tools which make this possible are mentioned below.
With chart patterns, you get up to 20 stocks that are ranked by how closely they match your spending limits and your interests.
With Xpress charts, you can mix and pair up technical studies to find a scenario that suits you the best.
The dragon allows you to scan the entire market for options and stocks that match the criteria that you have chosen.
With the strategy scan, you can easily find a strategy that would align with your investing goals, your risk level, and your trading experience.
The chains appear all on one screen for intrinsic values, real-time quotes complex spread construction, and time values.
Traders that are active also get access to E*Trade Pro for free. E*Trade pro is the company’s direct access trading platform which permits the users to find investors, sectors, and industries that are at the top.
A complete and fair review of E*Trade won't be complete without discussing some of the disadvantages.
Disadvantages of Choosing E*Trade
Of course, just like everything has its ups and downs, E*Trade also has its advantages as well as disadvantages.
There are some website that review E*Trade in which reviewers have complained about some certain things pertaining to the services.
After going over all such reviews of E*Trade here is a breakdown:
Margin account required
E*Trade does provide beginners with an opportunity to tinker with trading and the stock market, however, for this, a margin account is required with the minimum amount varying from $500 to $10,000.
It is true that E*Trade offers its frequent traders lower rates but it is considered as one of the online brokers that has its prices on the higher end of the spectrum. Doing your business with E*Trade can be costly if you do not make 150 trades or more per quarter.
According to other statistics, investors need to make at least 30 trades per quarter if they want to have free access. Otherwise, they’ll have to pay $99.95 for a month’s subscription. The structure of the commission is also towards the high end of the scale with almost $10 per trade.
Unsatisfactory customer service
There are some reviews on E*Trade having complaints regarding the customer service. Often, the customer service is misdirected to various departments and is generally slow. Perhaps the greatest number of complaints about the customer service is that the call centers are outsourced and the representatives of the call center severely lack knowledge to handle complains.
When contacting customer services some users realized that it is necessary for them to connect to the supervisor so that they can get their questions answered. This means that if the investor needs someone to guide them through every step, then E*Trade is not the one for them.
On the other hand, if the investors are able to navigate the mobile app or website, then they will find out that there are numerous aspects of E*Trade which are generally absent from other standard brokerages.
Not all investors can access the premium platform
E*Trade pro, which is the strongest and the most powerful platform of the firm, requires an investor to at least place 30 options or 30 stocks per quarter. For many people, this might not be a problem, but if you can't reach the required number of trades this platform might be unsuitable for you.
E*Trade is one of the best online brokerage that you can choose for trading. This is not only because it provides numerous benefits and is easy to use, but also because of the fact that the firm provides numerous helpful tools which make investing easy to understand and easy to do.
In order to start trading with E*Trade, you will first have to create an E*Trade account. How to make an E*Trade account has been explained above, and as you can tell it is extremely easy. All you have to do is to fill in the right information and follow the steps.
Keep in mind that there are a few different options when it comes to the type of available accounts. Make sure you understand each of these accounts clearly and what they entail before making your selection. In fact, it would be better if you went through an E*Trade review first (positive as well as negative) before starting trading so that you know what to expect.