E*Trade is one of the popular online discount stock brokerage firm which was founded in 1982 and has its headquarters in New York City. It is a financial service company which was started for the sake of self – directed investors. Giving opportunities to investors to invest money for buying and selling securities such as Bonds, Mutual Funds, Stocks and exchange trade funds with the help of electronic trading platforms or with the help of phone. Apart from this E*Trade also provides banking services to all the retail investors such as sweep deposits and saving products.
Now days E*Trade financial operates directly through numerous subsidiaries such as E*Trade Securities LLC, E*Trade Bank and E*Trade Clearing LLC. The company offers lots of research and services to investors and helps them to place trades easily.
How to Open an Account on E*Trade
Opening an account on E*Trade mostly take 5 to 10 minutes and to complete the procedure you need to provide right details of yours so as to make your account active. E*Trade let all their new and existing customers to open Two types of account i.e. Brokerage account and Retirement Account which is described as below:
- Brokerage Account
If you choose to open brokerage type account, E*Trade let you choose brokerage account of three categories which is:
Individual Account Joint Account Custodial Account Account is owned by single individual Account is owned by two or more people equally Account is managed by adult custodian for the benefit of minor Legal owner has the right to operate the account Each owner has the right to operate, Trade and transact the account Custodian has the right to handle the account. Done in case of child education. Deposit of $500 is required to get started Deposit of $500 is required to get started Deposit of $500 is required to get started
- Retirement Account:
In case you want to open retirement account with E*Trade, you get access to four different type of retirement account which is discussed below:
- Rollover IRA – With rollover IRA you can move your assets from an old retirement plan and can enjoy benefits of much wider range of investments and potentially lower fees while keeping the same advantages.
- One Stop Rollover IRA – This type of account is recommended for accounts of $250,000 or more. You can take control of your retirement with ease by rolling over your old 401(k) directly into a professionally managed portfolio from E*Trade capital management.
- Traditional IRA – Under this you can build your retirement savings with tax-deductible contributions, no annual income limits and tax-deductible contributions.
- Roth IRA – The major benefit of this account is that you can pursue your retirement goals with tax-free savings. Also you can withdraw contributions anytime with no taxes or penalties.
Additional Note = you can also take benefit of E*Trade capital management in case you are looking for active and ongoing portfolio management.
E*Trade let you to make investments in Bonds, Stocks and other fixed income assets, mutual funds of around 8,000 categories and target date funds. The company also enables you to perform trading in 77 international markets. In case you are not sure about where to invest your money than you can consult with E*Trade support team so as to get further help regarding investment.
E*Trade Commission and Fees
As compared to other stock brokerage firm E*Trade charge lower mutual fund fee but their stock trade fees and the option base is little bit on higher side. Apart from this E*Trade does have a large section of commission fee ETF-s which you can choose as per your requirement.
|Stock Trades||Option Base||Options Contract||Minimum Deposit||Mutual Funds|
|$9.99||$9.99||$0.75||$500||$0 – $19.99|
Note = you need to keep one thing in mind that if you are an active trader than E*Trade will offer you $7.99 per trade and to qualify for this you need to perform minimum of 150 trades per quarter. However if you want to open an account on E*Trade than you need to deposit an amount of $500.
This service is started by the company so as to make advanced trading software easy to understand and relevant for main street investors. For all the active traders E*Trade Pro service solves many problem which they face while performing online trading. Moreover this service is available to any customers who execute at least option trades or 30 stock trades per calendar year and maintains a minimum brokerage account of $250,000. E*Trade do not charge any additional fee to use this service. Some major features of E*Trade pro is given below:
- Point and click order entry – Once click on security symbol in the panel you are and trade or traction will happen
- Professional grade advanced trading tools – Enjoy benefits of some business tools such as advanced options screener, strategy optimizer, analytics and margin analyzer in single app.
- Quick Updation – Track markets with the help of live streaming watch lists, sector and industry tracker, market news and many more.
- Industry Tracker – Keep an eye on changes going in different industrial sectors.
- Get trading ideas – With the help of probability calculator and built in back testing, estimate the amount which you want to invest as per market conditions.
Apart from this the feature also provides at least 2 screens for personalization. One will surely enjoy while making use of this feature.
E*Trade Mobile App
Apart from offering services like E*Trade Pro, E*Trade also backs investors by offering their services through E*Trade Mobile App. With the help of this app you not only get access to trading tools but you can also operate trading account without facing any difficulties. E*Trade App currently supports devices such as:
- Android Phone and Tablet
- Apple Iphone, Ipad and Apple Watch
- Amazon Fire Phone
- Windows Phone
- Kindle Fire
The best part of using E*Trade mobile app is the user interface is very good and all the functionality of E*Trade website is available in the mobile application. For all the active traders it is a recommended app to control and monitor their accounts.
As doing online stock trading is always a risky thing, therefore E*Trade offers Symantec Virtual Digital Security Token so as to secure your financial information and make online trading risk free. With the help of E*Trade Security you will receive a keychain sized device which will generate a new personal 6 digit access code every 1 minute. For every individual who perform trades through smartphones, Symantec offers an app that efficiently does the same functioning.
One you get the 6 digit code, you can then log in with your username, key-code and password and this will make unauthorized login to your E*Trade account almost impossible. This is the best feature which E*Trade offers to all their investors.