E*TRADE
A reliable middle-ground broker with solid tools for both casual and active traders. Now part of Morgan Stanley.
Score Breakdown
Six dimensions assessed across a 15-year investment horizon.
Protection & Custody
Investor Protection
SIPC + excess coverage
$500,000 (SIPC) + $600M aggregate excess
Excess coverage through Lloyd's of London
Track Record
44+
Years in operation since 1982
Total Cost of Ownership
“Competitive pricing with solid platforms”
Commission
$0 (stocks/ETFs) / $0.50/contract (options)
Spread
Included in routing
Inactivity Fee
$0
Withdrawal Fee
$0 (ACH) / $25 (wire)
FX Conversion
N/A
Est. Monthly Cost
~$0–$10/month for most users
Order Flow & Execution
Receives PFOF for equities and options
E*TRADE routes retail orders to market makers including Citadel and Virtu. Generates significant PFOF revenue annually.
Pros & Cons
Pros
- $0 stock and ETF commissions
- Power E*TRADE platform for active traders
- Strong options trading tools
- Morgan Stanley integration for wealth clients
Cons
- Being merged into Morgan Stanley platform
- No fractional shares
- Higher margin rates than IBKR
- Limited international market access
A reliable middle-ground broker with solid tools for both casual and active traders. Now part of Morgan Stanley.