How to sell stock on E*TRADE

To sell stock on E*TRADE, log into your account, find the stock in your portfolio, and use the "Sell" button to enter how many shares you want to sell and at what price. E*TRADE will show you the current market price, let you choose between a market order (sells when ready at the best available price) or a limit order (sells only if the price reaches what you specify), and then confirm the sale before it goes through. The entire process takes a few minutes from start to finish.

The sale settles in your account two business days after you place the order, meaning the cash from the sale becomes available to use or withdraw after that settlement period. Until then, the shares remain in your account but are marked as sold.

Key Takeaways

  • Market orders sell your shares right away at the current price, while limit orders wait for your target price and may not fill if the stock never reaches it.
  • E*TRADE shows you real-time pricing and lets you review the order details before confirming the sale.
  • Your sale settles two business days later, at which point the cash is available in your account.
  • You can sell partial positions (some of your shares) or your entire holding in a single order.
  • E*TRADE charges no commission on stock sales, though you may owe capital gains tax on any profit.

Finding your stock and starting a sell order

Open E*TRADE and go to your portfolio or positions page. This shows all the stocks you currently own. Search for or scroll to the stock you want to sell, then click on it to open its details. You will see a "Sell" button or link next to the stock name; click that to begin the order.

E*TRADE will open a sell form where you enter the number of shares you want to sell. If you own 100 shares and want to sell all of them, type 100. If you want to sell only 30 shares and keep 70, type 30. The form will show you how many shares you own so you cannot accidentally enter a number higher than your balance.

Choosing between market and limit orders

After you enter the number of shares, E*TRADE asks you to choose an order type. A market order sells your shares when ready at whatever price the market is offering right now. This is the fastest way to sell and almost always goes through, but you do not control the exact price — it could be a few cents higher or lower than what you saw on screen, depending on how fast the market is moving.

A limit order lets you set a minimum price. E*TRADE will only sell your shares if the stock reaches that price or higher. If the stock never hits your price, the order stays open until you cancel it or until the end of the trading day (if you set it as a day order). Limit orders give you price control but no may provide the sale will happen.

For most stocks, especially those that trade frequently, a market order fills within seconds. For less active stocks or during market gaps, a limit order protects you from selling at a price you did not expect.

Reviewing and confirming your order

Before E*TRADE sends your order to the market, it shows you a summary: the stock symbol, the number of shares, the order type (market or limit), and the estimated proceeds (how much cash you should receive). Check that all the details are correct. If you made a mistake, you can go back and change the number of shares or order type.

Once you confirm, E*TRADE sends the order to the market. For a market order, this usually fills within seconds and you will see a confirmation number and the actual price you received. For a limit order, you will see a confirmation that the order is open and waiting.

When the cash appears in your account

Your sale order is confirmed when ready, but the cash does not settle into your account right away. Stock trades in the United States settle on a T+2 basis, meaning two business days after the trade date. If you sell on a Monday, the cash arrives Wednesday. If you sell on a Friday, it arrives the following Tuesday (skipping the weekend).

Until settlement, the shares are no longer yours but the cash is not yet available to withdraw or use to buy other stocks. After settlement, the cash moves into your cash balance and you can use it however you want.

Tracking your sale and tax records

After your order fills, E*TRADE records it in your account history and trade confirmations. You can view the details of any sale by going to your account statements or order history section. E*TRADE keeps this information for your records and for tax purposes.

When you sell a stock for more than you paid for it, you have a capital gain. When you sell for less, you have a capital loss. E*TRADE does not withhold taxes on these gains, but you will owe taxes on them when you file your return. E*TRADE sends you a tax form (Form 1099-B) each year that lists all your sales, which you use to report your gains and losses to the IRS.

Selling during market hours versus after hours

E*TRADE lets you place orders during regular market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays) and also during extended hours (4 p.m. to 8 p.m. and 7 a.m. to 9:30 a.m.). Market orders placed during regular hours fill at the best available price. Market orders placed during extended hours may fill at different prices because fewer traders are active, and some stocks may not trade at all during those times.

Limit orders work the same way in both periods: they wait for your target price. If you place a limit order after hours and the stock never reaches your price before the market closes, the order carries over to the next trading day (if you set it as a good-till-canceled order) or expires at the end of the day (if you set it as a day order).

Frequently Asked Questions

Can I cancel a sell order after I place it?

Yes, but only if it has not filled yet. If you placed a market order and it filled within seconds, you cannot cancel it — the sale is done. If you placed a limit order that is still waiting for your target price, you can cancel it from your orders page. Once you cancel, the shares stay in your account and the order disappears.

What happens if I try to sell more shares than I own?

E*TRADE will not let you place the order. The sell form shows your available balance and will not accept a number higher than that. This prevents you from accidentally selling shares you do not have.

Do I pay a commission when I sell stock on E*TRADE?

No. E*TRADE charges no commission on stock sales. You do not pay a fee to E*TRADE for selling, though you may owe capital gains tax on any profit when you file your taxes.

Why is the price I received different from what I saw on screen?

Stock prices move constantly during the trading day. If you placed a market order, E*TRADE sold your shares at the best price available at that exact moment, which may have shifted between when you saw the price and when your order reached the market. This is called slippage and is normal. Limit orders avoid this by waiting for your specific price.

Can I sell fractional shares on E*TRADE?

Yes. If you own 10.5 shares of a stock, you can sell all 10.5 or just part of them. E*TRADE accepts fractional share orders and processes them the same way as whole shares.