What You Pay Per Trade at E*TRADE

E*TRADE charges no commission on stocks, ETFs, and options trades

E*TRADE does not charge a per-trade commission for buying or selling stocks, exchange-traded funds (ETFs), or options contracts. This has been the case since 2019, when the firm eliminated commission fees across these asset classes to match competitors like Fidelity and Charles Schwab.

What you pay instead depends on what you trade and how you trade it. Bonds carry a markup rather than a visible fee. Mutual funds may have transaction costs depending on whether they are E*TRADE mutual funds or funds from other companies. Futures contracts have a per-contract fee. And certain account types or trading patterns can trigger additional costs.

The absence of a per-trade commission does not mean trading is free. Understanding what costs do explore helps you see the real price of each trade before you place it.

Key Takeaways

Stocks, ETFs, and options trades carry no commission at E*TRADE, but you still pay the bid-ask spread, which is the difference between what buyers will pay and what sellers will accept.
Bonds are sold with a markup built into the price rather than a separate fee, and the markup varies by bond type and market conditions.
E*TRADE mutual funds have no transaction fee, but mutual funds from other companies may carry a transaction cost or sales charge depending on the fund.
Futures contracts cost between $1.50 and $2.25 per contract, per side, depending on your account size and trading volume.
Margin accounts charge interest on borrowed money, and some account types have inactivity fees if you do not trade within a set period.

What the bid-ask spread costs you on every trade

When you buy or sell a stock or ETF at E*TRADE, you do not pay a commission, but you do pay the bid-ask spread. This is the gap between the highest price a buyer will pay (the bid) and the lowest price a seller will accept (the ask). E*TRADE does not set this spread — the market does — but you pay it on every trade.

For a liquid stock like Apple or Microsoft, the spread might be a penny or two per share. For a less-traded stock, the spread can be much wider. If you buy 100 shares of a stock with a 5-cent spread, you lose $5 on the round trip (buy and sell). This cost is invisible because it is not a separate line item on your statement, but it is real.

The spread is smallest during market hours when many traders are active, and wider before the market opens or after it closes. If you trade during these off-hours, your spread cost rises.

Bond markups and how they differ from commissions

E*TRADE sells bonds with a markup rather than a commission. The markup is the difference between what E*TRADE paid for the bond and what it charges you. Unlike a commission, which is a separate fee, the markup is built into the price you see on your screen.

The markup varies. Treasury bonds typically have a smaller markup than corporate or municipal bonds. High-yield bonds (also called junk bonds) often have larger markups because they are riskier and less liquid. E*TRADE does not publish a standard markup percentage — it changes based on the specific bond, market conditions, and the size of your order.

When you sell a bond you own, E*TRADE buys it from you at a bid price that also includes a markup in the firm's favor. The difference between what you paid and what you receive reflects both the markup and any change in the bond's market value since you bought it.

Mutual fund transaction costs and which funds are free to trade

E*TRADE mutual funds — funds managed by E*TRADE or distributed directly through E*TRADE — have no transaction fee when you buy or sell them. This means you can move money in and out of these funds without paying a separate cost beyond the fund's internal expense ratio.

Mutual funds from other companies may carry a transaction fee of $49.95 or higher per trade, depending on the fund and whether it is part of a preferred list. Some funds are on E*TRADE's no-transaction-fee (NTF) list, which means you can buy and sell them without a per-trade cost. The NTF list includes thousands of funds but not all funds available through E*TRADE.

Before you buy a mutual fund that is not an E*TRADE fund, check whether it appears on the NTF list. If it does not, you will pay the transaction fee each time you buy or sell. This fee is separate from the fund's expense ratio, which you pay whether you hold the fund for one day or one year.

Futures contracts and per-contract pricing

If you trade futures contracts at E*TRADE, you pay a per-contract fee rather than a commission. The fee is typically $1.50 to $2.25 per contract, per side (one fee to open, another to close). The exact rate depends on your account size and how many contracts you trade per month.

Futures traders with larger accounts or higher monthly volume may receive lower per-contract rates. E*TRADE publishes its futures pricing on its website, and rates can change. If you are new to futures, the per-contract fee is in addition to the bid-ask spread you pay on the contract itself.

Margin interest and other account-level costs

If you use a margin account to borrow money from E*TRADE to buy securities, you pay interest on the borrowed amount. The interest rate varies based on how much you borrow and current market rates. E*TRADE publishes its margin rates on its website, and rates change daily.

Some E*TRADE accounts have an inactivity fee if you do not place any trades within a set period — typically 12 months. The fee is usually $40 per year, though it may be waived for accounts above a certain balance or for accounts that meet other conditions. Check your account agreement to see whether an inactivity fee applies to you.

If you hold positions in a margin account, you also pay interest on any cash balance you carry. This is separate from the margin interest on borrowed funds and is typically lower.

Options trading costs beyond the commission

E*TRADE charges no commission on options trades, but you still pay the bid-ask spread on the options contract itself. Options spreads are often wider than stock spreads because options are less liquid than the underlying stock.

If you exercise an option — for example, if you own a call option and decide to buy the stock at the strike price — you do not pay a separate fee to exercise. However, you then own the stock, and any future sale of that stock is subject to the bid-ask spread.

Some options strategies, like spreads or straddles, involve multiple legs. Each leg is a separate trade with its own bid-ask spread, so your total cost for a multi-leg strategy is the sum of all the spreads.

How to see your actual trading costs before you trade

E*TRADE shows you the bid and ask prices before you place a trade, so you can see the spread you will pay. For stocks and ETFs, this is straightforward: the difference between the ask price (what you will pay to buy) and the bid price (what you will receive to sell) is your spread cost.

For bonds and mutual funds, the markup is built into the price shown on your screen. E*TRADE does not always break out the markup separately, so you may need to contact E*TRADE directly to learn what markup you are paying on a specific bond or fund.

Before you place a large trade, especially in less-liquid securities, you can call E*TRADE to ask what the spread or markup will be. This is particularly useful for bonds, where the markup can be substantial.

Frequently Asked Questions

Does E*TRADE charge a fee to open or close an account?

E*TRADE does not charge a fee to open a brokerage account. There is no annual account fee for most account types. Some accounts may have an inactivity fee if you do not trade within 12 months, but this is waived for accounts above certain balances or for accounts that meet other conditions.

What is the difference between a commission and a spread?

A commission is a flat fee charged by the broker for executing a trade. A spread is the difference between the bid and ask prices set by the market. E*TRADE charges no commission on stocks and ETFs, but you pay the spread on every trade. The spread is not a fee you see on your statement — it is built into the price.

Do I pay more to trade during after-hours or pre-market hours?

You do not pay an additional fee to trade before or after regular market hours, but the bid-ask spread is typically wider during these times because fewer traders are active. A wider spread means a higher cost for you on each trade.

Are there any hidden fees I should know about?

E*TRADE does not have hidden fees, but costs you may not expect include margin interest if you borrow money, inactivity fees on some accounts, and transaction fees on mutual funds not on the no-transaction-fee list. Always review your account agreement and the details of any security before you trade.

Can I negotiate the bid-ask spread or bond markup?

You cannot negotiate the bid-ask spread on stocks and ETFs — that is set by the market. For bonds, you can call E*TRADE and ask about the markup before you buy, and in some cases the firm may offer a better rate for larger orders, but there is no may provide.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.