E*TRADEStock Broker ReviewCommission-free

Power E*TRADE: the active trader's platform

Power ETRADE is ETRADE's purpose-built active trading interface, available to all account holders at no additional cost, and it stands out on options analytics. The options strategy scanner identifies opportunities across the full listed options universe, with risk/reward diagrams, probability calculations, and real-time Greek displays across multi-leg positions all standard. Paper trading with live market data allows strategy rehearsal without capital risk. For US equity and options traders, Power E*TRADE's analytical depth competes directly with Schwab's thinkorswim.

E*TRADE also offers listed futures trading on CME products through a futures-enabled account, a capability not available at Robinhood and restricted at Fidelity. This makes it relevant for equity investors who want to add futures-based macro hedges or directional commodity trades without opening a separate futures account.

Commission structure

Stocks and ETFs are commission-free for all accounts. Options trades carry $0.65 per contract, reducing to $0.50 per contract for clients who execute 30+ contracts per quarter. Futures trade at $1.50 per contract per side. There is no account minimum and no annual fee; E*TRADE eliminated both when it converted to commission-free trading in 2019.

Morgan Stanley institutional resources

Morgan Stanley acquired ETRADE in October 2020 for $13 billion, providing institutional backing that has improved the research content available through the platform. Morgan Stanley analyst reports, previously restricted to wealth management clients, are now available to ETRADE brokerage account holders. The integration with Morgan Stanley banking also simplifies cash management and wire transfers for clients who hold accounts across both platforms.

SEC, FINRA, and SIPC: 40 years of continuous operation

ETRADE Securities LLC is registered with the SEC and is a FINRA and SIPC member. SIPC protection covers client accounts up to $500,000 (including $250,000 for cash), supplemented by additional excess SIPC coverage through a Lloyd's of London policy. ETRADE has operated continuously since 1982, making it one of the oldest online brokerages in existence.

Where it falls short

ETRADE serves US residents only; international investors cannot open an account. The standard ETRADE web platform (separate from Power E*TRADE) is functionally adequate but less distinctive than the active trading interface. No fractional share trading is available, which limits accessibility for high-priced equities. Research tools, while improved post-Morgan Stanley acquisition, still trail Fidelity's 20+ third-party provider integration for fundamental analysis.

Bottom line

E*TRADE is the right choice for active US investors who want options strategy analytics and futures access under one commission-free account backed by Morgan Stanley's institutional resources. For pure buy-and-hold investors who want zero-expense-ratio index funds, Fidelity's ZERO fund range is a stronger structural advantage. For maximum global market access, Interactive Brokers is more appropriate.