Key Takeaways
- • Idle cash in E*TRADE's default Bank Deposit Program sweep earns 0.01% APY on balances below $500,000, which works out to about $10 a year on $100,000.
- • Online trades in US exchange-listed shares cost $0, while options run $0.65 per contract, falling to $0.50 at 30 or more trades per quarter.
- • Spot crypto trading is limited to bitcoin, ether and solana, executed through Zero Hash LLC, and crypto cannot yet be transferred out of the platform.
- • Securities are protected by SIPC through Morgan Stanley Smith Barney LLC against broker failure only, not market losses, while swept cash falls under FDIC coverage only if a bank fails.
- • Closing the account costs $75 for a full transfer out, and the account has a $0 minimum with no subscription fee.
Summary
E*TRADE, a self-directed brokerage, offers stocks, ETFs, fractional shares, options, mutual funds, bonds and Treasuries, futures, international securities, spot cryptocurrency and crypto ETFs. The platform has no account minimum and no subscription charge. Online commissions are $0 for US exchange-listed shares, while over-the-counter stocks cost $6.95. Options carry a $0.65 per-contract fee, reduced to $0.50 for traders executing 30 or more trades per quarter, and index options add up to $0.66 per contract.
The review identifies idle cash as a notable weakness. Uninvested balances default into the Bank Deposit Program at 0.01% APY for balances below $500,000. The review notes that this equals $10 a year on $100,000, and investors seeking meaningful yield on cash would need to move funds manually.
Crypto access is narrow. Spot trading is available only in bitcoin, ether and solana, provided through Zero Hash LLC, and crypto cannot currently be transferred to or from external wallets. Spot crypto ETFs are listed on the platform, though the review advises checking account eligibility, as no explicit restriction is stated.
On protection, the review distinguishes between the coverage layers. SIPC protection through Morgan Stanley Smith Barney LLC (CRD 149777) responds to a broker failure in which customer assets are missing, but it does not cover market losses. Swept cash is covered by FDIC insurance only if a bank fails, and crypto held at Zero Hash is covered by neither. E*TRADE is regulated by the SEC and FINRA. Retirement account types supported include Traditional, Roth, Rollover, SEP, SIMPLE, Inherited and Solo 401(k).
Among the platform's advantages, the review cites custom scans and an ETF screener on Power E*TRADE, paper trading with play money, and a Solo 401(k) and SIMPLE IRA for small businesses. Deposits made by ACH become usable on day three. Drawbacks include the low default cash yield, the limited crypto offering and the $75 full-transfer fee.
The review identifies idle cash as a notable weakness. Uninvested balances default into the Bank Deposit Program at 0.01% APY for balances below $500,000. The review notes that this equals $10 a year on $100,000, and investors seeking meaningful yield on cash would need to move funds manually.
Crypto access is narrow. Spot trading is available only in bitcoin, ether and solana, provided through Zero Hash LLC, and crypto cannot currently be transferred to or from external wallets. Spot crypto ETFs are listed on the platform, though the review advises checking account eligibility, as no explicit restriction is stated.
On protection, the review distinguishes between the coverage layers. SIPC protection through Morgan Stanley Smith Barney LLC (CRD 149777) responds to a broker failure in which customer assets are missing, but it does not cover market losses. Swept cash is covered by FDIC insurance only if a bank fails, and crypto held at Zero Hash is covered by neither. E*TRADE is regulated by the SEC and FINRA. Retirement account types supported include Traditional, Roth, Rollover, SEP, SIMPLE, Inherited and Solo 401(k).
Among the platform's advantages, the review cites custom scans and an ETF screener on Power E*TRADE, paper trading with play money, and a Solo 401(k) and SIMPLE IRA for small businesses. Deposits made by ACH become usable on day three. Drawbacks include the low default cash yield, the limited crypto offering and the $75 full-transfer fee.
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