What E*TRADE is and what you can do with it
E*TRADE is a brokerage platform where you can buy and sell stocks, mutual funds, exchange-traded funds (ETFs), bonds, and options. You open an account, fund it with money, and then place trades through their website or mobile app. E*TRADE handles the actual buying and selling on your behalf and holds your investments in your account until you decide to sell them.
The platform is designed for people who want to manage their own investments without paying a financial advisor to do it for them. You make the decisions about what to buy and when to sell. E*TRADE provides the tools—research data, charts, order forms, and account tracking—to help you make those decisions.
Key Takeaways
- You must open and fund an E*TRADE account before you can place any trades, and the account opening process takes a few minutes online.
- Once your account is open and money is deposited, you search for a stock or fund by its ticker symbol, review its price and details, and click to buy or sell.
- E*TRADE charges a commission per trade for stocks and ETFs, though the amount varies depending on your account type and trading activity.
- Your investments stay in your E*TRADE account and are insured up to $500,000 through SIPC protection, which covers the brokerage itself failing, not market losses.
- You can view your account balance, transaction history, and current holdings anytime through the website or app.
Opening an E*TRADE account
Go to E*TRADE's website and click the button to open a new account. You will need to provide your Social Security number, date of birth, address, and employment information. E*TRADE will verify your identity and run a background check. The whole process takes about 10 to 15 minutes.
You will choose an account type. The most common choice for beginners is a Cash Account, which means you can only spend money you have already deposited. A Margin Account lets you borrow money from E*TRADE to buy investments, but it requires a minimum deposit (usually $2,000) and involves more risk and complexity. Start with a Cash Account unless you have a specific reason to use margin.
After your account is approved, you will need to fund it by transferring money from your bank. E*TRADE will ask for your bank's routing number and your account number. The transfer usually takes three to five business days to complete, though some transfers are faster.
Finding and buying a stock or fund
Once your account is funded, log into E*TRADE and look for the "Trade" or "Buy/Sell" section. You will see a search box where you can enter a ticker symbol—the short code for a stock or fund. For example, Apple's ticker is AAPL, Microsoft's is MSFT, and the Vanguard S&P 500 ETF's is VOO.
Type the ticker symbol and E*TRADE will show you the current price, the day's price change, and a chart of how the price has moved over time. Click on the security to open its details page. Review the information to make sure you are looking at the right investment.
Click the "Buy" button. A form will appear asking how many shares you want to buy. Enter the number of shares and choose your order type. A Market Order buys the shares at the current market price right away. A Limit Order lets you set a maximum price you are willing to pay; the order will only fill if the price drops to that level or lower. For most beginners, a Market Order is simpler. Review the total cost (number of shares times the price per share, plus any commission), then click to confirm the order.
The order will execute within seconds to minutes during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays). You will see a confirmation number and the shares will appear in your account. If you placed a Limit Order and the price never reaches your limit, the order will remain open until you cancel it or the market closes.
Understanding E*TRADE commissions and fees
E*TRADE charges a commission each time you buy or sell a stock or ETF. The commission amount depends on your account type and how much you trade. For most individual investors, the commission is between $0 and $10 per trade, though E*TRADE's pricing changes periodically. Check E*TRADE's current fee schedule on their website before you open an account if the cost matters to you.
Mutual funds and bonds have different fee structures. Some mutual funds charge a transaction fee when you buy or sell them through E*TRADE; others do not. Bonds typically do not have a separate commission but include a markup in the price. E*TRADE will show you the total cost before you confirm any order.
Your account may also charge an inactivity fee if you do not trade for a long period, though E*TRADE waives this fee for many account types. Check your account agreement or call E*TRADE customer service to confirm what fees explore to your specific account.
Tracking your investments and checking your balance
Log into your E*TRADE account anytime to see your current holdings, account balance, and how much your investments have gained or lost. The dashboard shows your total account value and a breakdown of each position (each stock or fund you own). Click on any holding to see its current price, your cost basis (what you paid for it), and your gain or loss.
E*TRADE also shows your transaction history—a record of every buy and sell order you have placed. This is useful for tracking what you paid for an investment and when you bought it. You can read this history as a report, which is helpful for tax purposes at the end of the year.
If you want to sell an investment, go to your holdings list, click on the position you want to sell, and click the "Sell" button. Follow the same process as buying: choose your order type (Market or Limit), enter the number of shares, and confirm. The money from the sale will appear in your account's cash balance within one to two business days.
Using E*TRADE's research and charting tools
E*TRADE provides charts, news, and research data to help you decide what to buy. When you search for a stock or fund, the details page shows a price chart you can adjust to view different time periods—the last day, week, month, year, or custom range. The chart shows how the price has moved and can help you spot trends.
Below the chart, you will find news articles, analyst ratings, and company information. These are informational resources; they do not tell you whether to buy or sell. Read them to understand what you are investing in, but remember that past performance does not may provide future results and analyst opinions vary widely.
E*TRADE also offers screeners—tools that let you filter stocks by criteria like price, industry, or dividend yield. These are useful if you want to find investments that match your preferences rather than searching for specific companies by name.
Account protection and what happens if E*TRADE fails
Your investments in an E*TRADE account are protected by SIPC (Securities Investor Protection Corporation) up to $500,000 per account. This protection covers the brokerage itself failing—if E*TRADE goes out of business, SIPC ensures you get your investments and cash back. SIPC does not protect you from market losses; if you buy a stock for $100 and it drops to $50, that loss is yours.
E*TRADE is also a member of the Financial Industry Regulatory Authority (FINRA), which oversees brokerages and handles customer complaints. If you have a dispute with E*TRADE, you can file a complaint with FINRA.
Your account login is protected by a password and, optionally, two-factor authentication (a code sent to your phone or email). Use a strong password and enable two-factor authentication to keep your account find.
Frequently Asked Questions
Can I buy stocks during after-hours trading on E*TRADE?
Yes. E*TRADE allows after-hours trading from 4 p.m. to 8 p.m. Eastern Time. After-hours prices can be more volatile and spreads (the difference between buy and sell prices) can be wider, so orders may not fill at the price you expect. Most beginners should stick to regular market hours (9:30 a.m. to 4 p.m.) until they are comfortable with how trading works.
What is the minimum amount of money I need to open an E*TRADE account?
E*TRADE does not require a minimum deposit to open a Cash Account. However, some investments have minimums—for example, many mutual funds require at least $1,000 to buy. You can open the account with any amount and start trading once your deposit clears.
How long does it take to withdraw money from E*TRADE back to my bank?
Withdrawals typically take three to five business days. You request the withdrawal through your account, and E*TRADE sends the money to the bank account you linked during setup. Weekends and bank holidays can add time to the process.
Can I set up automatic investments on E*TRADE?
Yes. E*TRADE offers automatic investment plans where you can set up regular transfers from your bank and automatic purchases of a stock or fund on a schedule you choose. This is useful if you want to invest a fixed amount every month without having to log in and place the order manually.
What happens to my dividends if I own dividend-paying stocks on E*TRADE?
When a company pays a dividend, the cash is deposited into your account's cash balance. You can then use that cash to buy more shares, withdraw it, or let it sit. E*TRADE will show the dividend in your transaction history and send you a statement at tax time showing how much you received.