E*TRADE from Morgan Stanley review 2024

E*TRADE from Morgan Stanley at a glance

Feature	Rating	Details
Investment options	★★★★★	Stocks Bonds Options ETFs Mutual funds CDs Futures
Trading platforms and technology	★★★★★	Mobile, web browser and desktop trading platforms Advanced charts, screeners, watchlists, price alerts, earnings estimates, company financials, free third-party research and analyst ratings, price targets, news and company statistics
Trading costs	★★★★★	Zero commission stock and ETF trades $0.65 per options contract Above-average margin rates, up to 14.20%
Account fees	★★★★★	No annual fee, no inactivity fee and an average $75 full outgoing account transfer fee.
Customer support	★★★★★	Live chat, phone and email support.
Mobile app rating and security	★★★★★	Google Play app reviews: 4.5/5 stars based on over 45,530 reviews Apple App Store app reviews: 4.6/5 stars based on over 173,810 reviews
Features and amenities	★★★★★	Robo-advisor Financial advisors through Morgan Stanley Paper trading Extended hours trading Extensive educational resources
Cash sweep rates	★★★★★	Offers a cash sweep program but rates of only 0.01%–0.15% APY depending on your balance.
Account types and minimums	★★★★★	Individual, joint and custodial brokerage accounts 529 plans Traditional, Roth, rollover, custodial and SEP IRAs

To learn how our star ratings are calculated, read our
methodology.

E*TRADE is best for active traders, beginners and long-term investors

Pioneer in online investing and a leading US broker, E*TRADE is a strong option for traders and investors of all
skill levels due to its comprehensive suite of trading platforms, extensive educational resources and diverse
investment options. Active traders benefit from powerful tools and low fees, while beginners will appreciate its
intuitive interface and learning materials. Long-term investors will enjoy a wide range of assets, a variety of
tax-advantaged retirement accounts and extensive retirement planning resources.

• Active Traders. E*TRADE offers advanced trading platforms like Power E*TRADE, with real-time data,
  customizable charts and sophisticated tools for options trading.
• Beginners. E*TRADE provides extensive educational resources, including webinars, articles and
  tutorials, which help new investors learn the basics of investing and trading. E*TRADE’s robo-advisor, Core
  Portfolios, is also available for hands-off beginners looking to automate their portfolios.

Long-term investors. E*TRADE supports a variety of investment options such as stocks, bonds, mutual
funds and exchange-traded funds (ETFs). It also offers most individual retirement accounts (IRAs), as well
as planning tools and resources to help manage long-term investment goals.

What we like about E*TRADE
E*TRADE from Morgan Stanley offers customers the full investor package through a
wide range of securities and account types, commission-free stock, ETF and options trading, sophisticated
trading platforms and human and automated advisory services.

Wide range of investment options and account types

Trade stocks, bonds, CDs, option, futures, ETFs, over 6,000 mutual funds and IPO shares when available.
E*TRADE’s broad range of investment options lets traders and investors employ different investment
strategies and diversify their portfolios from a single brokerage firm.

Meanwhile, E*TRADE has one of the most extensive lineups of account types among brokers we review. You’ll
find everything from individual, joint and custodial brokerage accounts to education savings accounts to
retirement accounts for individuals and small businesses.

Sophisticated trading platforms

E*TRADE offers four trading platforms that cater to beginners, experienced investors and advanced traders,
making it a versatile and powerful choice for online trading and investing. These include E*TRADE web,
E*TRADE mobile, Power E*TRADE web and Power E*TRADE mobile.

Here are some of the tools you’ll find across these platforms:

• Screeners
• Streaming real-time quotes, market and stock news and daily market commentary
• Advanced charts, with 145+ chart studies and drawing tools, automatic technical pattern recognition
  and analyzers
• Backtesters
• Free research from TipRanks, Thompson Reuters and other third-party providers
• Options trading risk-reward analysis tools
• Paper trading
• Webinars

Advisory services

Hands-off investors looking for managed accounts can make use of E*TRADE’s robo-advisor, Core Portfolios, or
financial advisory services through E*TRADE’s parent company, Morgan Stanley. Core Portfolios is a standard
robo-advisor that will build and manage a diversified portfolio of ETFs for you for a 0.30% annual advisory
fee and $500 minimum.

Where E*TRADE falls short

E*TRADE is a comprehensive broker with lots to offer traders and investors but it has a couple drawbacks to
consider:

• No access to cryptocurrency. While it offers many securities, E*TRADE’s is still a
  holdout on crypto. You can only gain indirect exposure to crypto through crypto trust ETFs.
• No fractional share trading. E*TRADE’s lack of fractional share trading can put off
  some beginner investors lacking a substantial starting capital or those just looking for flexibility
  when it comes to allocating their money.
• No instant buying power. It can take up to three days for your deposit to become
  available for trading.

Low cash sweep rates. E*TRADE offers a cash sweep program but it’s rates pale in
comparison to most of the competition. Balances under $5,000 earn a negligible 0.1% APY, while it
takes a balance of more than $1 million to earn 0.15% APY. Compare that to Charles Schwab’s 0.45%
APY, Fidelity’s 2.72% APY and Robinhood’s 5% APY with Robinhood Gold.

E*TRADE’s fees

Type of fee	Fee details
Minimum deposit to open	$0
Annual fee	$0
Stock trading fee	$0
Options trading fee	$0
Options contract fees	$0.65
Margin rate	14.20%
Account transfer fee	$75
Wire transfer out	$25
Inactivity fee	$0

Is E*TRADE legit?

E*TRADE from Morgan Stanley is a legitimate trading platform. Launched in
the early 1980s, the platform was acquired by Morgan Stanley in 2020. It’s regulated by the
Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).
Through its membership of the Securities Investor Protection Corporation (SIPC), customers are
protected up to the value of $500,000 for their cash and securities.

In terms of its platform security, E*TRADE is considered safe and secure. Customer assets are
protected by the E*TRADE from Morgan Stanley Complete Protection Guarantee against unauthorized
account use. E*TRADE employs fraud protection, privacy protection, encryption and network defenses
and two-factor authentication.

Customer experience

E*TRADE generally receives poor customer feedback across Trustpilot, the Better Business Bureau
(BBB) and Reddit.

• BBB. E*TRADE has a considerable number of customer complaints registered on
  the BBB, tallying over 500 complaints closed in the last three years. Common issues cited
  include billing problems, service complaints and difficulties with account access and
  communication. Notably, many complaints highlight a lack of satisfactory response to issues
  raised by customers. E*TRADE is not BBB accredited and has an F rating. As of June 2024, it
  earns a 1.09 out of five stars based on over 75 customer reviews.
• Trustpilot. Reviews on Trustpilot are similarly critical, with an overall
  rating of 1.2 out of five stars based on over 380 reviews, as of June 2024. Dissatisfied
  customers complain about issues with customer service, technical problems with the platform
  and frustrations over account management. Satisfied customers praise E*TRADE’s prompt
  customer support and user-friendly platforms. E*TRADE has not yet claimed its Trustpilot
  profile as of this writing.

Reddit. On Reddit, the sentiment is much of the same: varied with a mix of
positive and negative reviews. Positive comments often praise the platform’s tools and
resources for trading, while negative remarks tend to focus on customer service issues and
technical glitches.

Compare E*TRADE to other platforms

Frequently asked questions

How can I fund an E*TRADE account?

Fund your E*TRADE from Morgan Stanley account in several ways, including wire transfer, check,
deposit or transferring an account from another trading platform.

Does E*TRADE offer any information about tax?

E*TRADE from Morgan Stanley has a dedicated section of its platform, where customers
can find their tax documents.

Does E*TRADE charge a monthly fee?

E*TRADE does not charge a monthly fee for its brokerage
services.