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.
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.
E-Trade offers several types of accounts: brokerage account, retirement account, custodian account, IPA.
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.
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.
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.
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.
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.
well regulated broker; advanced trading platform; analytics.
accepts only US residents; high deposit; high commissions; lack of Russian-speaking support.
No one has commented on this broker yet
TRADE is a brokerage company whose task is to provide intermediary services to traders. Brokers provide access to currency trading in the first place. Many of them also provide an opportunity to transact with company stocks, bonds, commodities, precious metals, indices, cryptocurrencies and other assets. A private person can make transactions with all these instruments only on the trading platform, which the broker provides access to.
In addition, thanks to the brokerage company, an individual can operate on the market with amounts that significantly exceed the size of their own funds. This is called providing leverage. For example, having a deposit of 1,000 USD with a 1: 400 leverage, a trader can make deals for 400,000 USD.
The broker also opens access to analytics, auxiliary tools, and trading signals. Modern trading is impossible without all this.
The broker TRADE makes profit from traders' transactions, as a rule, in two main ways.
The first is the most common. Using spreads. This word refers to the difference between the best prices for buying and selling a particular asset at a particular moment. Moreover, in a transaction between a trader and a broker, the price is one, and between a broker and users of the Forex market - another. The mediator takes the difference for himself.
The second way is easier to understand. This is the collection of a commission for each transaction performed. Most often it has a standard value, but it can be measured as a percentage.
Thus, the brokerage company is interested in attracting as many clients as possible and for them to conduct active trading.
We have found out how honest brokers should work and how they work. Now let's look at how scammers operate, they are also called the kitchen.
The most common way to cheat is to tweak quotes. The broker provides the trader with quotes that differ from the real market ones. Data substitution occurs in order to make operations unprofitable. The deposit is reduced, and then completely zeroed out. At the same time, the trader thinks that his operations were carried out in the market, but in fact - only on the site of scammers.
Bonuses are traps. They are generously distributed for anything: for 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 virtually impossible conditions. For example, conduct trading operations for an amount tens of times greater than the size of the deposit.
In the User Agreement, a clause can also be disguised that allows the broker to manage 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 is the place of registration and regulation of the company's activities.
Let's talk about registration first. As a rule, brokers from either their own country or from an economically developed country, for example, a member of the European Union, are more credible to traders. Of course, compliance with UK legislation is reassuring, and compliance with the legislation of an unknown island in the Indian Ocean does not mean anything to most.
However, most brokerage companies are registered offshore. And it's not only about small offices, but also about world leaders. Saint Vincent and the Grenadines, Belize, Marshall Islands, Mauritius are offshore zones popular among brokers. By registering there, companies pay significantly less taxes than in the place of actual location, which is sometimes carefully hidden.
If a trader has any claims against such a company, then it is likely that he will have to deal with it in accordance with the legislation of that very conditional Belize. It is possible to be physically present there at the court sessions. And this is extremely expensive and difficult.
But is it worth running like fire from just the word "offshore"? As an answer, we will give the names of companies that are not related to brokerage, but with an impeccable reputation and also save on taxes through offshore registration: Apple, Pfizer, Microsoft, General Electric, Intel.
And here we come to the second important point - this is the regulation of the broker's activities. 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 brokerage activities. So, in Russia it is the Central Bank of the Russian Federation. A trader can find permissive documentation on the websites of such bodies. But there are also supranational structures. For example, the International Financial Commission (The Financial Commission), which is an independent self-regulatory organization, considering disputes between its members - brokers and their clients.
If the broker's website does not contain information about the regulation of its activities, then these are almost certainly scammers. Or the site contains information about a certain license issued to him, but this information is not confirmed anywhere else. Most likely, these are also scammers.
When choosing a brokerage company, study its history. Check out the links to her experts. If one of the leading TV channels in economic news for 5 years in a row refers to the opinion of the analyst of the broker in question, this is good. If a broker claims to have been working for 15 years, but there is no information about him on the Internet at all, this is bad.
It's important to pay attention to company reviews. And read them not only on the website of the broker itself. In the kitchen, they will probably only be laudatory. It is best to browse as many sites as possible.
Pay attention exclusively to the specifics in the offers on the brokers' websites. Honest companies openly write about interest, spread size, minimum deposit, etc. Fraudsters lure with loud, streamlined phrases about a rich tomorrow, stable income, misleading with incomprehensible terms about multi-sites, super functions, and so on.
Find out the company's connection with well-known brands, financial institutions, public organizations. For example, it can be sponsored. Large brokers sometimes hold social promotions. Fraudsters will definitely not do this.
Thus, the process of choosing a broker is complex. But if you approach it carefully, it will allow you to enter the world of trading, which has made millions of people rich all over 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. Brokers 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 broker. TRADE received a score of 1 of 5 on our resource.