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E-Trade offers trading in stocks, options, ETFs, options contracts, futures contracts, bonds. The broker only accepts US traders.
history of the company
The company began in 1982 when William A. Porter and Bernard A. Newcomb founded TradePlus in California for just $ 15,000. Then, in 1991, Porter and Newcomb founded a new venture, Etrade Securities. They began offering trading services through America Online and Compuserve. By 1994, revenues had reached nearly $ 11 million.
Just two years later, the company had 73,000 customers and was processing 8,000 transactions daily. Not to mention the quarterly revenue, which totaled an impressive $ 15 million. In June 1996, the company went public through an initial public offering (IPO).
In the early 2000s, a merger between Etrade and TD Ameritrade was expected. However, disagreements over pricing and management rights threw aside all plans to merge. Instead, Etrade acquired two former discount brokers, Harrisdirect plus Brown & Company.
As a result of numerous commercial transactions, E-Trade is now headquartered in New York, as well as 30 offices throughout the United States.
Fund security
The securities and services offered by E * TRADE Securities LLC are regulated by FINRA / SIPC. Investment advisory services are provided through E * TRADE Capital Management, LLC, registered as an investment advisor. E * TRADE Futures LLC, which offers futures products and services, is a member of the NFA. E * TRADE Securities LLC, E * TRADE Capital Management, LLC, E * TRADE Futures LLC, and E * TRADE Bank are separate but affiliated companies.
Trading conditions
E-Trade offers several types of accounts: brokerage account, retirement account, custodian account, IPA.
Minimum deposit
Trading in E-Trade starts with a deposit of at least $ 500. This amount is considered an industry standard, but for US brokers this is a low deposit, as many companies start trading at $ 1000.
Lower deposits can be found at CySEC brokers.
Spreads and commissions
E-Trade charges $ 6.95 for stock trades and $ 6.95 + $ 0.75 per contract for options trades. There are also bulk discounts. This means that active traders can get bets as low as $ 4.95 + $ 0.50 if they make more than 30 trades each quarter.
E-Trade commissions are not the cheapest. However, many traders point out that you get more for the money, including powerful trading tools and valuable additional features.
Leverage
Once you open a margin account, you can borrow up to 50% of your deposit from the broker. The margin will help you increase your income.
Remember about the Margin Call (a situation in which the balance on the investor's account falls below the minimum allowable norm). Due to the high rates, you could lose more than your original account balance. Therefore, caution should be exercised when dealing with leverage.
Trading platforms
E-Trade has three trading platforms - E-Trade Web, Power E-Trade and E-Trade Pro. All of them are free and available to all clients, with no trading activity and no minimum balance.
E-Trade Web offers free streaming market information, free live quotes, live market commentary, stock market insights and more. From the dashboard, you can track your accounts, create watchlists, view market data, and take trades, including complex options strategies.
E-Trade Pro, the company's desktop platform, also impresses with its idea generation tools such as the Strategy Scanner and back testing capabilities.
And for really active traders there is Power E-Trade, the result of the acquisition by OptionsHouse a few years ago. The web platform offers real-time data, over 100 technical studies, over 30 drawing tools, trading strategies.
Significant services
Traders can take advantage of the ready-made portfolio service which includes mutual funds and exchange-traded funds.
For investors who value analyst guidance, E * TRADE offers consensus ratings from several third parties, including individual analysts through TipRanks.
The broker's website charts include Trefis price estimates right on the chart with a quick link to view the full Trefis analysis.
Support service
Etrade promises 24/7 help by phone and online chat. Visit their page to find a contact phone number. There you can also write to the online chat or find the postal addresses of the offices that are closest to you, and come to a personal meeting at the representative office.
Alternatively, you can contact a customer service representative directly from your account. From there, you can send secure messages and you can even upload documents.
Please note that customer service agents cannot provide tax advice.
Although the broker supports all major communication methods, many companies now offer live video chat support.
Ways of payment
There are several ways to deposit and withdraw funds, including:
Electronic method: Account transfer: Bank transfer Cashless payment: Send a check by mail
The withdrawal time will depend on the payment method.
Criticism of traders
Russian traders are concerned about opening an account with a company. To do this, you must have a legal US residence permit. In general, Russian-speaking investors complain about the lack of support in their native language. There are many complaints regarding withdrawals or unfair trading on the network.
E * TRADE continues to innovate in trading, primarily through the acquisition of OptionsHouse in 2016 (now Power E * TRADE). While E * TRADE prices are higher than most, the overall supply is balanced.
Pros:
well regulated broker; advanced trading platform; analytics.
Minuses:
accepts only US residents; high deposit; high commissions; lack of Russian-speaking support.
No one has commented on this broker yet
TRADE is a company whose task is to provide intermediary services to traders. Brokers / Crypto exchanges provide access to currency / cryptocurrency trading, first of all. Also, many of them, if we are talking about brokers, give the opportunity to make transactions with company shares, bonds, commodities, precious metals, indices, cryptocurrency and other assets. A private person can make transactions with all these instruments only on a trading platform, access to which is provided by a broker or a crypto exchange.
In addition, thanks to such companies, an individual can operate in the market with amounts significantly exceeding the amount of his own funds. This is called the provision of leverage. For example, having a deposit of 1,000 USD with a leverage of 1:400, a trader can make transactions for 400,000 USD.
As well, the broker / crypto exchange opens access to analytics, auxiliary tools, trading signals. Without all this, modern trading is impossible.
TRADE profits from traders' trades, usually in two main ways
.
First – most common. Using spreads. This word refers to the difference between the best prices for buying and selling a certain asset at a particular moment. Moreover, in a transaction between a trader and a broker, the price is one, and between the broker and market users - another. The mediator takes the difference.
The second method is easier to understand. This is a fee for each operation performed. Most often it has a standard value, but can also be measured as a percentage.
Therefore, the company is interested in attracting as many clients as possible and that they conduct active trading.
How honest brokers / crypto exchanges should work and how they work, we found out. And now let's look at how scammers act, they are also called kitchens.
The most common way to cheat – is to twist quotes. Broker / crypto exchange gives the trader quotes that differ from the real market. There is a substitution of data in order to make operations unprofitable. The deposit is reduced, and then completely reset. At the same time, the trader thinks that his operations were made on the market, but in fact – just on the site of scammers.
Bonus – traps. They are generously distributed for anything: registration, account replenishment, etc. Only after that, in order for the client to withdraw his own money mixed with bonus money, it will be necessary to fulfill a number of actually impossible conditions. For example, to conduct trading operations in the amount of ten times more than the size of the deposit.
The User Agreement may also mask a clause that allows the broker / crypto exchange to dispose of the client's money. Inattention when reading such an agreement most often turns into a complete loss of the deposit.
One of the key points – it is the place of registration and regulation of the company's activities.
First let's talk about registration. As a rule, traders are more trusted by companies either from their own country or from an economically developed country, for example, a member of the European Union. Of course, compliance with UK law is reassuring, and compliance with the laws of an unknown island in the Indian Ocean does not mean anything to most at all.
On fact, most brokerage companies are registered offshore, and we are talking not only about small offices, but also about world leaders. Saint Vincent and the Grenadines, Belize, Marshall Islands, Mauritius are popular offshore zones among companies. Registering there, companies pay significantly less taxes than in the place of actual location, which is sometimes carefully hidden.
If a trader has claims against such a company, then it is likely that he will have to deal with it in accordance with the laws of the same conditional Belize. It is possible to be physically present there at court hearings. And this is extremely expensive and difficult.
No is it worth running like fire from just the word «offshore»? As an answer, we will cite the names of companies that are not related to brokerage, but with an impeccable reputation and also save on taxes with the help of offshore registration: Apple, Pfizer, Microsoft, General Electric, Intel.
And here we come to the second important point – this is the regulation of the broker / crypto exchange. First of all, it is carried out at the level of the state where the company is registered. Each country has its own regulatory body for brokering. So, in Russia it is the Central Bank of the Russian Federation. The trader can find permits on the websites of such authorities. But there are also supranational structures. For example, the International Financial Commission, which is an independent self-regulatory organization, specifies disputes between its members – brokers and their clients.
If there is no information on the broker's website / crypto exchange about the regulation of its activities or license, then it is almost certainly a scammer. Or on the site there is data on some license issued by him, but this information is not confirmed anywhere else. Most likely, these are also scammers.
When choosing a brokerage company, or crypto exchanges, study its history. Look at the links to its experts. If one of the leading TV channels in the economic news for 5 years in a row refers to the opinion of the analyst of the broker in question – this is good. If the broker / crypto exchange assures that it has been working for 15 years, but there is no information about it on the Internet at all – this is bad.
It is important to pay attention to reviews about the company. And read them not only on the website of the broker itself / crypto exchange. In the kitchen, they will certainly be only praiseworthy. It is better to view as many sites as possible.
Pay attention solely to the specifics in the offers on the websites of brokers / crypto exchanges. Honest companies openly write about interest, spread size, minimum deposit, etc. Scammers lure loud streamlined phrases about a rich tomorrow, a stable income, mislead with incomprehensible terms about multi-sites, superfunctions and so on.
Specify the company's connection with well-known brands, financial institutions, public organizations. For example, it can be sponsored. Large brokers / crypto exchanges sometimes hold social promotions. Scammers will definitely not do this.
Therefore, the process of choosing a broker / crypto exchange is complicated. But if you approach it carefully, it will allow you to enter the world of trading, which has made millions of people rich around the world
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Before any trade and choosing a broker You must always read reviews on this site and on other sites. Companies who are honest, have a rating of above 3.8. Also there is always the risk of loss when trading CFDs. Be careful and read the disclosure on the website of the company you chose. TRADE received a score of 1 of 5 on our resource.