What Is Etrade and How Does It Work? Read Our Informative Review!
Welcome To My ETRADE Review!
Today we are going to answer the question: What Is Etrade and How Does It Work. This review will answer your questions regarding Etrade and I will also share my opinion about trading at the end of this article. Enjoy!
ETRADE Review - Quick Summary
Founded in: 1982
Field: Stock brokerage firm
Summary: Etrade is a relatively reliable stock brokerage. I highly advise that you study diligently before you start trading on their or on any other platform. Trading involves lots of risks and +90% of people lose money while trading.
Is Etrade Recommended? Only for highly educated traders. If you want to learn a proven way to make money online, I advise having a look at my #1 recommendation.
What Is ETRADE All About?
ETRADE is an online stock brokerage firm which offers investors the ability to buy and sell securities such as stock, future, options, mutual funds, bonds, forex and do online trading research without any interaction with a broker. ETRADE online platform comes with easy-to-use tools which enable users to maximize their trading experience; you can watch, trade, monitor stocks and view overall performance analytics.
I also found out that ETRADE provides mobile trading apps (Apple IOS, Apple Watch, Amazon Fire Phone, Kindle Fire, Windows phone, and Android phone and tablet) with impressive features than most brokers offer.
ETRADE’s fees are on the average side for the online options trading industry. You pay $9.99 for the standard trade fee plus $0.75 per options contract, but the $9.99 reduces to $7.99 when you make more than 150 trades per calendar quarter.
However charging at $7.99, ETRADE seems cheaper than many other options brokers like Charles Schwab, TD Ameritrade, and Fidelity but it is not the cheapest. The fee for an exercise is $19.99, which is one of the higher prices I saw for these fees, but the $25 broker-assisted fee is average.
How does ETRADE work?
To open an account with ETRADE you need a minimum of $500 to open a brokerage account. Just like most brokerage firm, you can fund your account by doing an electronic transfer from your bank or other financial institution, make a deposit into an ETRADE branch, or send a check via snail mail. Within a few days of making your initial deposit, you will be ready to start trading.
Who is ETRADE For?
ETRADE is a useful online trading platform for investors of all kinds, who simply want to open a long-term, and stable investment accounts. Even though the transaction fees are not that very soft, but if you plan to make trades and hold unto them, ETRADE can be a perfect suit. Its user-friendly platform provides you with all necessary information and tools.
But the challenge is that it doesn’t teach you how to make money. It requires lots of skills and practice to make money by trading. 95% of traders are losing their money. If you want to learn skills to make money online, I recommend taking a look at this platform called Wealthy Affiliate.
What Are the Benefits of ETRADE?
1.Beginner Friendly– Offers users an easy-to-navigate website with a great built-in education investor center. You can decide to do trading yourself or simply reach out to a broker. All this makes ETRADE an easy-to-use online trading platform for even the most novice of investors.
2.Manage Your Account– If you desire to take hands-off your investment, ETRADE has you covered through ETRADE capital management solution. This offers you a financial expert to help manage your portfolio. Their objective is to create and maintain a balanced portfolio that is persistent with your goals, risk, and tolerance. However, to take advantage of this option, you must have a minimum of $25,000.
3.Platform & Tools – ETRADE provides all traders with real-time streaming quote tool, Interactive charts, and even tax advice. However, the more active traders are automatically upgraded to the ETRADE Pro platform, which comes with extended trading hours, and additional tools like the ability to stream CNBC, customizable watch lists, and ETRADE 360 – which integrates all your investments into one place.
4.The length of Services– ETRADE can be regarded as a one-stop shop for financial services because it offers an extended spectrum of investments. This ranges from stocks and bonds to mutual funds and providing banking services to maintain checking accounts and IRAs, and can even apply for a mortgage.
5.Security– Everybody wants to sleep knowing their financial information is secure. ETRADE have a security-conscious reputation with ETRADE’s Symantec Virtual Digital Security Token, where you can receive a keychain-sized device that generates a 6-digit new personal access code every 60 seconds. There is also a Symantec app available for iPhone, Android, Blackberry, and Windows smartphones for individuals who have smartphones.
In the picture above you can see what kind of prices ETRADE has. Nordnet, prices are actually higher in ETRADE even though it’s located in U.S where prices are usually lower than in Finland.
Pros & Cons
- ETRADE’s website is easy to use and its research, investment, and a trading tool are ideal for beginners placing basic trades and experienced traders working on complex orders.
- Offers a reasonable minimum deposit of $500 requirement which opens the platform to investors of all sizes and levels of experience.
- You can operate as an investor using financial consultant assistance, or have your portfolio professionally managed.
- More expensive trading fee than most online brokers.
- High commissions for infrequent traders.
- Active-trading oriented with perhaps only a few getting the benefits of lower fees.
Trading vs. Slower Strategies
When talking about investing money and trading, I am not a trader. I prefer investing money on long-term for good and valuable companies. A big part of long-term investors are making a profit but only a very small part of traders are earning money.
Trading can sound interesting because there are examples of people who became rich quickly but there are much more examples of traders who became poor quickly. Did one of the richest man in the world, Warren Buffett, became rich quickly? No. He is a man of long-term investing too.
Many investing possibilities can give you a possibility to make passive income while trading requires daily work. Of course, there are some people who prefer trading but I am not one of them. I would love to hear your thought in the comments below.
My favorite way to make money online is to build a successful online business. If you are interested in becoming a successful online business owner, have a look at the online business training. You will get 10 interactive video lessons, 2 websites and my 1-on-1 mentoring for free.
Have you used eTrade or some other trading platform? Which one is your favorite?
Let me know in the comments below!
If you have any questions, just leave a comment below and I will be more than happy to help you out.
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