E*TRADE Review

Overview

E*TRADE is a good online broker in 2026, particularly for investors who want strong trading tools, options capabilities and Morgan Stanley research without paying commissions on standard online stock and ETF trades. Power E*TRADE is one of its biggest advantages, while relatively expensive margin borrowing and recurring complaints about customer service are its main weaknesses.

E*TRADE is not the cheapest broker for every type of investor, and it is no longer missing some of the features older reviews criticise it for. E*TRADE now supports direct fractional-share purchases and spot cryptocurrency trading in Bitcoin, Ethereum and Solana.

E*TRADE at a glance

E*TRADE states that standard brokerage accounts have no minimum funding requirement. Its current pricing schedule lists $0 commissions for online US-listed stocks, ETFs, eligible mutual funds and options. Options contract fees and other product-specific charges still apply.

Who is E*TRADE best for?

E*TRADE is best for investors who want more trading capability than a minimalist investing app without moving to a specialist trading platform.

It is worth considering if you are:

• Active stock and options traders who will use Power E*TRADE's charting, scanning and risk-analysis tools.
• Long-term investors who want stocks, ETFs, mutual funds, bonds and retirement accounts under one broker.
• Options traders who benefit from Snapshot Analysis, TradeLab, paper trading and discounted contract pricing after 30 qualifying trades per quarter.
• Investors who value research, particularly access to Morgan Stanley market analysis.
• Investors who want one financial ecosystem spanning brokerage, retirement, managed portfolios and Morgan Stanley Private Bank products.

E*TRADE is a weaker fit if you regularly borrow against your portfolio, want access to dozens of cryptocurrencies or place a high value on responsive customer service.

What is E*TRADE?

E*TRADE is a US online brokerage owned by Morgan Stanley. Morgan Stanley completed its acquisition of E*TRADE Financial Corporation on October 2, 2020. E*TRADE now operates within Morgan Stanley's Wealth Management business.

The brokerage offers self-directed investing, retirement accounts, managed portfolios and banking products. Available investments include stocks, ETFs, mutual funds, options, bonds, futures and, following its 2026 expansion, a limited selection of cryptocurrencies.

That gives E*TRADE a wider scope than a basic stock-trading app. It sits between simple investing apps and specialist trading platforms. Investors can start with ordinary stock and ETF purchases, then add retirement accounts, options, futures or managed investing if their needs change.

E*TRADE fees and commissions

E*TRADE is inexpensive for ordinary stock, ETF and mutual-fund investing, but considerably less attractive if you regularly borrow on margin.

Current published pricing includes:

Fund expense ratios, regulatory charges, exchange fees and other product-specific costs can still apply even where E*TRADE charges a $0 commission.

Are E*TRADE margin rates expensive?

Yes. E*TRADE's published margin rates are expensive for investors who regularly borrow against their portfolios.

As of September 10, 2026, E*TRADE lists a 9.95% base rate. Published stock, ETF and options margin rates are 12.45% for debit balances below $10,000 and 10.45% for balances between $250,000 and $499,999.99. Rates for balances of $500,000 or more are quoted separately.

The cost may not matter to a cash investor. It matters much more to an active trader carrying six figures of margin debt.

If margin financing is central to your strategy, compare E*TRADE's current rates with Interactive Brokers and other brokers that focus on lower borrowing costs before opening an account.

How good is Power E*TRADE?

Power E*TRADE is the main reason an active trader might choose E*TRADE.

Power E*TRADE is the broker's advanced web-based platform. It includes charting, scanners, options analysis, risk and reward modelling and paper trading. Ordinary investors can use the standard platform instead.

E*TRADE currently advertises more than 145 chart studies and drawing tools. Power E*TRADE also includes Technical Pattern Recognition, Earnings Move Analyzer, Snapshot Analysis, configurable scans and tools for planning exit strategies.

Options traders get the most value from these features. Snapshot Analysis displays theoretical profit, loss and risk characteristics. TradeLab models how an options position may respond to changes in price, time and volatility.

Power E*TRADE also supports paper trading. Investors can test the interface and strategies with simulated money before placing live trades.

Someone who buys an index ETF twice a month may never use most of these tools. For an active options or swing trader, they change the value of the account.

Is the E*TRADE app good?

E*TRADE offers two mobile apps: E*TRADE Mobile for general investing and Power E*TRADE Mobile for more active trading.

The standard app covers portfolio management, stocks, ETFs, mutual funds and options. It also includes cash-management functions and research.

Power E*TRADE Mobile is built for trading. It supports stocks, ETFs, simple and multi-leg options and futures, along with interactive charts, streaming quotes, news and options-chain tools.

The two-app setup makes sense. Beginners do not need technical indicators and options Greeks every time they check a retirement account. Active traders, meanwhile, are not limited to a stripped-down consumer app.

What can you invest in with E*TRADE?

E*TRADE offers a wider investment selection than many app-first brokers. Available investments include:

Account types include taxable brokerage accounts, Traditional IRAs, Roth IRAs, Rollover IRAs, custodial accounts, Coverdell Education Savings Accounts and small-business retirement plans.

Does E*TRADE offer fractional shares?

Yes. E*TRADE allows direct fractional-share purchases for eligible listed securities.

Orders can be entered to three decimal places, with a $5 minimum purchase. Direct fractional purchases are not currently available for OTC securities.

This corrects a common point in older E*TRADE reviews. The broker no longer lacks direct fractional-share investing.

Does E*TRADE offer cryptocurrency?

Yes. E*TRADE offers spot trading in Bitcoin, Ethereum and Solana through a crypto service powered by zerohash.

Crypto trading is available 24/7 and carries a 0.50% commission based on the dollar value of the transaction. zerohash, rather than E*TRADE itself, provides crypto custody and trading support.

The selection is limited. Three assets may be enough for someone who wants Bitcoin or Ethereum exposure alongside a brokerage account. E*TRADE is not a substitute for a full cryptocurrency exchange with broad altcoin access.

Is E*TRADE good for options trading?

Yes. Options trading is one of E*TRADE's strongest use cases.

Standard equity and index options cost $0.65 per contract. Customers who make at least 30 qualifying stock, ETF and options trades per quarter pay $0.50 per contract.

E*TRADE also waives the per-contract fee when buying to close eligible short options priced at $0.10 or less through its Dime Buyback Program.

The main advantage is the trading software, not the 15-cent discount. Power E*TRADE combines multi-leg order entry with Snapshot Analysis, TradeLab, options chains, probability tools and paper trading.

That gives E*TRADE more appeal to options traders than a broker whose main selling point is commission-free stock trading. Heavy-volume options traders should still compare total execution costs and platform features with specialist brokers.

Is E*TRADE safe?

E*TRADE is a legitimate US brokerage backed by Morgan Stanley. Brokerage protection does not protect investors from ordinary investment losses.

Brokerage services are provided through Morgan Stanley Smith Barney LLC, a member of the Securities Investor Protection Corporation. SIPC protection generally covers customer securities and cash held at a failed member brokerage up to $500,000 per customer, including a $250,000 limit for cash claims.

Morgan Stanley also maintains additional brokerage insurance above standard SIPC limits, subject to policy terms and aggregate limits.

Eligible bank deposits at Morgan Stanley Private Bank may receive FDIC insurance. E*TRADE states that brokerage cash swept through its Bank Deposit Program can receive FDIC coverage up to $500,000 for individual accounts and $1 million for joint accounts when the relevant conditions are met.

SIPC and FDIC protection are not the same as investment insurance. Neither one makes a losing stock, option, ETF or cryptocurrency trade whole.

What are the main E*TRADE drawbacks?

E*TRADE's main weaknesses appear beyond its $0 stock and ETF commission headline.

Margin is expensive. Published rates are above 10% across the displayed margin tiers and reach 12.45% for balances below $10,000. For investors who carry debt, that cost can outweigh small differences in trading commissions.

Crypto selection is limited. Bitcoin, Ethereum and Solana cover the most common use cases, but investors who want broad altcoin access will need another platform.

Some transactions carry sizable charges. OTC trades, broker-assisted trades, options contracts, futures and certain fixed-income transactions are not free.

Customer-service feedback is mixed. Recent Reddit discussions and reviews on ConsumerAffairs and Trustpilot include recurring complaints about account restrictions, document handling and difficulty resolving unusual account problems. Positive experiences appear as well, but the negative pattern is worth considering before moving a large portfolio.

These review platforms are self-selecting, so their ratings do not show what percentage of E*TRADE customers experience problems. They are more useful for identifying recurring types of complaints than for measuring their frequency.

E*TRADE pros and cons

E*TRADE vs Fidelity, Schwab and Interactive Brokers

Choose a broker according to the activity that matters most to you. Brand recognition is not enough.

Choose E*TRADE if Power E*TRADE, options analysis and Morgan Stanley research matter more than having the lowest possible margin rate.

Consider Fidelity or Charles Schwab if long-term investing and service quality matter more than active-trading tools. User discussions often mention both as alternatives when customer service is the reason for leaving E*TRADE, although individual experiences differ. Consider Interactive Brokers if borrowing costs, international market access or advanced trading infrastructure are central to your strategy. E*TRADE's published margin pricing is high enough that investors who borrow should make this comparison before transferring assets.

A 2026 Kiplinger brokerage comparison placed Interactive Brokers first overall, while E*TRADE remained competitive in several categories.

E*TRADE does not need to be the best broker for every task. Its appeal is the combination of a conventional brokerage, advanced trading tools, market research and a broad set of account types.

Is E*TRADE good for beginners?

Yes, E*TRADE can work well for beginners, particularly because the standard platform is simpler than Power E*TRADE and there is no minimum funding requirement for a standard brokerage account.

A beginner can start with ordinary stocks, ETFs or mutual funds without needing to interact with futures, margin or complex options.

The platform also has room to grow with the investor. Power E*TRADE becomes available if more advanced trading becomes relevant later.

Someone who wants the absolute simplest possible buy-and-hold experience may not need everything E*TRADE offers, but complexity is optional rather than compulsory.

Is there a monthly fee for E*TRADE?

A standard E*TRADE brokerage account does not have a general monthly maintenance fee. E*TRADE also states that standard brokerage accounts have no account minimum.

Individual products and services can still carry charges, including:

Is E*TRADE worth it in 2026?

Yes. E*TRADE is worth considering in 2026 if you want a serious trading platform alongside a mainstream brokerage.

Its best features are Power E*TRADE, options analysis, Morgan Stanley research, broad investment access, $0 standard stock and ETF commissions, fractional shares and a wide selection of brokerage and retirement accounts.

The case is weaker if margin borrowing or customer service is your priority. E*TRADE's published margin rates are difficult to justify against lower-cost competitors, and recent customer feedback includes enough complaints about complex account issues to make a comparison worthwhile before moving a large portfolio.

Choose E*TRADE if you will use its trading and research tools. It is a strong all-round option for active stock and options investors. Passive investors who only need low-cost index funds, and traders looking for the cheapest financing, have better reasons to shop around.

This review provides general information rather than personalised investment advice. Pricing, rates and product availability can change.