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Rating: 7.4 / 10 (Very good)
2 Customer Reviews - see all comments
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Founded in 1982, E-Trade was one of the first companies that provided online trading services for individual investors. Out of its headquarters in New York City and 30 branches across the United States, E-Trade employs over 4,000 financial service professionals through online brokerage and banking.
 
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How is E*Trade rated?

Breakdown

4.0/5
IRA Types
4.0/5
Investment Options
3.5/5
Account Features
2.5/5
Fees and Discounts
5.0/5
Reputation and Customer Support

Overall Rating: 3.7 / 5 (Very good)

Although not as large as other brokerage firms, E-Trade still stands out because of their robust and user-friendly online tools. Their Roth IRA offering does not require a minimum deposit and has no opening or maintenance fees. Nonetheless, some investment accounts call for a significant initial deposit and invariably carry trading fees or commissions. E-Trade's drawbacks are related to higher per trade costs than other brokerages and penalty fees for IRA conversions or excess contributions, although investors who complete more than 30 trades per quarter receive a discount for the trading fee (from $6.95 to $4.95). Managed portfolio accounts also require minimum deposits and carry additional costs but are not essential to managing investments; account holders have free access to financial consultants that can assist with investment questions. These shortcomings notwithstanding, E-Trade really excels in their online customer experience. With a customizable trading platform, access to streaming market data, and an abundance of online educational resources, veteran and novice investors alike have plenty of useful features at their fingertips. E-Trade also manages a mobile app that provides all the necessary tools for administrating accounts and investments. The availability of service representatives across multiple platforms also receives high grades.

E*Trade Account Minimums

IRA Types - 4 / 5

E-Trade's IRA products (including the Roth IRA) do not require a minimum deposit at opening or a minimum amount to be maintained. However, E-Trade trading accounts require at least a $500 deposit to open them. Furthermore, customers who wish to invest through their automated managed portfolio services require a $5,000 minimum deposit. Beginner investors will like the no-minimum IRA, but might find an investment account elsewhere that does not require an initial deposit.
How much money do you need to start?
0
How much do you have to keep in your account?
0

E*Trade Investment Options

Investment Options - 4 / 5

E-Trade's investment choices include a full range of long and short-term options. Although the $6.96 per trade cost is higher than other high-volume brokerage houses, E-Trade offers hundreds of mutual funds with no transaction fees and ETFs with 0 commissions as investment options for their Roth IRA product.

How can I invest my money?

Mutual Funds
Index Funds
Stocks
Bonds
Money Market Accounts
Certificates of Deposit
ETFs
Options

E*Trade Fees and Commissions

How much do they charge?

$0 opening or maintenance fees. However, E-Trade does charge a $25 fee if you either contribute too much to your Roth IRA (therefore requiring a withdrawal of the excess funds) or if you recharacterize your investment (converting a traditional IRA into a Roth or vice versa). Additionally, stocks, options, and ETFs have a $6.95 per trade charge.

Account Features - 3.5 / 5

Although E-Trade does not charge for the opening or maintenance of Roth IRAs, they do charge for excess contributions or conversions from one type of IRA to another. The $25 charge is apart from the possible 10% penalty the IRS levies against this type of account activity. Trading also carries a $6.95 charge per each stock, option, or ETF traded. Investors who wish to avoid such charges will be able to find other brokerages with lower per trade costs or no additional penalty fees. However, E-Trade does offer discounts to more active traders ($4.95 per trade if more than 30 are made per quarter).

E*Trade Financial Reputation

Fees and Discounts - 2.5 / 5

E-Trade's financial credit rating has been recently upgraded by Moody's Corporation as stable, and they're positioned favorably for short and long-term growth. Because they've been in business for close to forty years, E-Trade's reputation and name recognition are strong within the industry.
What's their Moody's rating?
Baa2
How many "regulatory events" does FINRA list for them?
86
How many arbitrations does FINRA list for them?
127

E*Trade Online Experience

Reputation and Customer Support - 5 / 5

E-Trade acquired online brokerage OptionsHouse in 2016 as a way to ramp up their investment trading software. As a result, E-Trade's trading platform dashboard offers a dynamic and user-friendly experience in terms of available information and customizable features, serving as an invaluable investment tool. Users can track the market in real-time, make trades, and monitor their accounts. The website is also a boon for account holders who are new to investments since it's brimming with educational pages that explain the ins and outs of trading and other financial concepts.

What's their website like?

E-Trade's website is simple to use and contains extensive research tools and information services for both novice and experienced investors. Their trading platforms include a customizable dashboard where account holders can view live streaming market data, quotes, and analysis. E-Trade's mobile app gives customers multiple ways to manage accounts, trade, or research investments.

E*Trade Methods of Contact

How do I communicate with them?

App
Phone
Chat
Email
Branch

Methods of Contact - 5 / 5

Customer service for E-Trade can be reached on 24 hour/7 days a week basis via phone, chat, or e-mail. They also have dozens of branches across the country to receive customers face-to-face. The availability of customer service representatives across various platforms, at any time, is highly regarded when evaluating the company.

E*Trade Advisors

Advisors - 2.5 / 5

Via phone or chat, E-Trade has financial consultants available without charge so that customers can receive assistance regarding their investments and accounts. E-Trade also offers a range of managed portfolio options for investors to choose from. For users who prefer a completely online experience, E-Trade offers their Core Portfolio. With this option, users need only answer some basic questions and choose a simple investment strategy to start their process, with only a $5,000 minimum deposit. Blend and Dedicated portfolios are more tailored for investors with the capability of meeting higher minimum deposits and who want direct contact with dedicated financial consultants. In this way, E-Trade provides advisory alternatives for investors of all levels. Nonetheless, in addition to the minimum deposit amounts, managed portfolios carry annual fees that need to be considered before choosing such options.
What kind of advisors do they have?
Human Advisors
What should I know about their advisors?
Financial consultants are available over the phone or through online chat to provide account holders with recommendations and investment strategies. There are also managed portfolio options with minimum deposit requirements, depending on the amount of assistance needed.

E*Trade Promotions

Promotions - 3 / 5

E-Trade provides account holders with cash credits and commission-free trading through periodic special offers. Since these discounts may change often, it is recommended users verify E-Trade's website for up-to-date special offers. Many of these require minimum deposits for account openings but, for investors that have available cash and are active traders, they can provide welcomed savings.

What special promotions could save me money?

For transfers or deposits of $10,000 or more, account holders receive up to 500 commission-free trades within 60 days of the initial deposit.

Company Profile

Full Name
E*Trade Roth IRAs
Company Website
https://us.etrade.com/home
Headquarters
1 Times Square, 32nd Floor, New York City, NY, 10036
Top Rated
VISIT SITE

  • Offers Roth IRA certificates of deposit (CDs)
  • Interest rates are higher than many competitors'

Discover offers a dedicated Roth IRA CD, which can be purchased with maturity dates ranging from 3 months to 10 years. Although Discover does not offer other Roth IRA options, it can be a good choice for people who want CDs to be part of their Roth IRA portfolio.

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