E*TRADE (a Morgan Stanley company)
E*TRADE Review 2026
Active-trader platform with strong options tools and Power E*TRADE desktop.
Who E*TRADE is best for
Active traders and options investors who want a dedicated desktop platform without moving to a standalone trading app.
At a glance
- Stock/ETF commission
- $0
- Options commission
- $0.65/contract
- Account minimum
- $0
- Fractional shares
- Yes
Commission-free US stocks and ETFs
Discounts to $0.50 for 30+ contracts/month
No minimum for standard brokerage accounts
Available on eligible US stocks and ETFs
Pros
- +Power E*TRADE is a strong active-trading desktop platform with real-time scanning, options chains, and risk analysis tools
- +Options commission at $0.65/contract with volume discounts — competitive for active options traders
- +Morgan Stanley acquisition (2020) added financial advisor access and integration with Morgan Stanley research
- +Full IRA menu including Roth, traditional, rollover, SEP, SIMPLE, beneficiary IRA
- +Two-factor authentication and strong security infrastructure
Cons
- −Uses PFOF — trades not routed for pure best-execution like Fidelity
- −Mobile app less polished than Fidelity's or Schwab's for routine account management
- −Morgan Stanley integration means some premium features are behind an advisory relationship
E*TRADE requirements
- US residents 18+
- $0 standard account minimum
- Margin accounts require $2,000 minimum
E*TRADE alternatives
Top alternatives worth comparing from Best Online Brokerages 2026.
Fidelity Investments
Fidelity Investments
Investors of all experience levels who want commission-free trading with best-execution routing and a full suite of account types.
Charles Schwab (includes legacy TD Ameritrade accounts)
Charles Schwab
Investors who want one platform for DIY, active trading (thinkorswim), and robo-advisory — all under one account.
Vanguard
Vanguard
Long-term, buy-and-hold investors building a simple index portfolio who prioritize the lowest fund expense ratios.
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Apply at E*TRADE (a Morgan Stanley company)→Last verified at the issuer on 2026-06-05
The full lineup
See all picks in Best Online Brokerages 2026
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Read the full guide →Bottom line
E*TRADE scores 4.1 / 5 on the ClearValue Rating — a deterministic editorial composite from the product's own published fees, terms, and eligibility. Best for: Active traders and options investors who want a dedicated desktop platform without moving to a standalone trading app.
◆ How we scored it
The ClearValue Rating, broken down.
- Cost
- 35%
- Fit & approval odds
- 30%
- Speed & terms
- 20%
- Transparency
- 15%
Cost (35%), Fit & approval odds (30%), Speed & terms (20%), Transparency (15%) — scored consistently across every product, independent of compensation. Full methodology →
Frequently asked
Questions about E*TRADE
Who is E*TRADE best for?+
E*TRADE is best for active traders and options investors who want a dedicated desktop platform — Power E*TRADE — without switching to a standalone trading app. Its real-time scanning, options chains, and risk-analysis tools target hands-on traders rather than set-and-forget investors.
What does E*TRADE charge for trades?+
E*TRADE charges $0 commission on US stocks and ETFs and $0.65 per options contract, with the options rate dropping to $0.50 for traders placing 30 or more contracts a month. There is no minimum on a standard brokerage account; margin accounts require a $2,000 minimum.
Does E*TRADE offer fractional shares and IRAs?+
Yes — E*TRADE supports fractional shares on eligible US stocks and ETFs and offers a full IRA menu including Roth, traditional, rollover, SEP, SIMPLE, and beneficiary IRAs. This makes it usable for retirement saving alongside active trading.
How does E*TRADE make money on my trades?+
E*TRADE uses payment for order flow (PFOF), meaning trades are not routed purely for best execution the way a model like Fidelity's aims to. For most retail orders the difference is small, but very active or price-sensitive traders may want to weigh execution quality.
Is E*TRADE connected to Morgan Stanley?+
Yes — Morgan Stanley acquired E*TRADE in 2020, which added access to financial advisors and Morgan Stanley research. Some premium features sit behind an advisory relationship. You can open an account at us.etrade.com; ClearValue Lending is an information platform, not a broker.
Related guides
Independent editorial review. ClearValue Lending is a business & personal financing platform — not a lender, broker, or financial advisor. Some links are affiliate links; the issuer may pay a referral commission at no cost to you, which never changes the score. Specific product terms vary; verify with the issuer before applying. See privacy policy.