E*TRADE Review 2026

Name: E*TRADE
Brand: E*TRADE (a Morgan Stanley company)

Active-trader platform with strong options tools and Power E*TRADE desktop.

Get started at E*TRADE (a Morgan Stanley company) → Pre-qualify (where available) with a soft credit pull — no score impact.

ClearValue Rating: 4.1 / 5 — our editorial assessment (how we rate)

Editorial4.3

Cost4.0

Value4.1

Access3.8

Editorial confidence (30%), cost (25%), value (25%), accessibility (20%) — scored consistently across every product, independent of compensation.

At a glance

Stock/ETF commission: $0 (Commission-free US stocks and ETFs)
Options commission: $0.65/contract (Discounts to $0.50 for 30+ contracts/month)
Account minimum: $0 (No minimum for standard brokerage accounts)
Fractional shares: Yes (Available on eligible US stocks and ETFs)

Who E*TRADE is best for

Active traders and options investors who want a dedicated desktop platform without moving to a standalone trading app.

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

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.
Read review Get started at Fidelity Investments →

Charles Schwab (Charles Schwab (includes legacy TD Ameritrade accounts)) — Investors who want one platform for DIY, active trading (thinkorswim), and robo-advisory — all under one account.
Read review Get started at Charles Schwab (includes legacy TD Ameritrade accounts) →

Vanguard (Vanguard) — Long-term, buy-and-hold investors building a simple index portfolio who prioritize the lowest fund expense ratios.
Read review Get started at Vanguard →

Bottom line

E*TRADE — Active-trader platform with strong options tools and Power E*TRADE desktop. Best for: Active traders and options investors who want a dedicated desktop platform without moving to a standalone trading app.. Compare it against alternatives before applying; the right fit depends on your situation, credit, and goals.

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.

How we rate

Every pick gets a 1–5 ClearValue Rating computed from four weighted factors: Editorial confidence (30%), Cost (25%), Value (25%), and Accessibility (20%).

Scored consistently across every product and independent of any compensation. Full methodology →

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Editorial disclaimer & disclosure

Not financial advice. ClearValue Lending is a financial education and comparison platform — not a bank, card issuer, lender, or financial advisor. This review is independent editorial content presenting publicly available information about E*TRADE. Nothing on this page is a recommendation to apply for, purchase, or open this product, nor is it individualized financial or credit advice.

How we rate. Every factual claim in this review is attributed to a named source: J.D. Power satisfaction studies, CFPB consumer data, FDIC deposit insurance data, Federal Reserve / FRED rate benchmarks, or official issuer disclosures. Ratings reflect editorial opinion grounded in that data — applied consistently and independent of compensation. Full review methodology →

Affiliate disclosure. Some links on this page are affiliate links — if you apply for or open an account through them, the issuer may pay ClearValue Lending a commission at no cost to you. This does not affect our editorial ratings or rankings.

Advertiser disclosure: some links are from our partners — we may earn a commission at no cost to you. Rankings and editorial assessments are independent of compensation.