Solid full-service broker for mainstream investors who value Power E*TRADE's active-trader tools, deep mutual-fund and bond shelves, and Morgan Stanley's wealth backbone. No fractional shares is the standout weakness.
- Morgan Stanley subsidiary
- Power E*TRADE platform
- Premium Savings 3.6% APY
- $0 commissions
- Spot crypto (May 2026)
At a glance
- Founded
- 1982
- Minimum deposit
- $0
- Regulators
- SEC · FINRA · CFTC
New York, NY
SIPC $500K + excess $150.0M
Strengths and weaknesses
Strengths
- Power E*TRADE platform — strong options analytics, paper trading, charting
- Morgan Stanley research and wealth tools backing the brokerage
- Premium Savings account ~3.6% APY for idle cash
- $0 commissions on stocks, ETFs, and listed options ($0.65/contract)
- Spot crypto launched (BTC/ETH/SOL at 50 bps) in May 2026
- 6,000+ mutual funds available
- Active Trader pricing: $0.50/options contract for high-volume traders
- Power E*TRADE API for algorithmic trading
- 24/7 phone, chat, and branch network
- Strong IRA lineup with all account types
Weaknesses
- No fractional shares on individual stocks (only via DRIP or robo)
- $6.95 flat fee on penny stocks ≤ $1
- OTC overnight 24-hour list limited to ~20 large-cap ETFs
- Base margin rate 13.20% under $25K — high vs. IBKR Pro
- Default cash sweep yields near 0% — must move to Premium Savings manually
- Futures pricing $1.50 active / $2.50 standard per contract
- Trails Fidelity's zero-expense-ratio fund offering
Best for
- Options tradingPower E*TRADE's options analytics, paper trading, and Active Trader $0.50/contract pricing make it competitive with thinkorswim.
- Active tradersPower E*TRADE platform with Level II, conditional orders, custom strategies, and the Power E*TRADE API.
- Retirement & IRAsFull IRA lineup, Morgan Stanley planning tools, branch network, and 24/7 support.
- Mutual funds6,000+ mutual funds with strong screener and Morgan Stanley fund coverage.
- Cash managementE*TRADE Premium Savings ~3.6% APY available, plus checking with debit-card features.
Sub-ratings
- Commissions & fees
- 4.0
- Platforms & tools
- 4.5
- Mobile app
- 4.5
- Research
- 4.5
- Education
- 4.5
- Customer service
- 4.7
- Range of investments
- 4.5
- Active trading
- 4.3
Pricing & fees
Full fee schedule| Category | Item | Price | Notes |
|---|---|---|---|
| Stocks & ETFs | US listed stock / ETF | $0 | — |
| Stocks & ETFs | Penny stocks (≤ $1) | $6.95 flat | — |
| Options | Options base + per-contract | $0 + $0.65 | $0.50/contract for Active Trader tier |
| Futures | Futures per contract | $1.50 active / $2.50 std | — |
| Crypto | Spot crypto commission | ~50 bps | BTC/ETH/SOL; launched May 2026 |
| Mutual funds | Mutual funds — NTF | $0 | — |
| Bonds | US Treasuries (online) | $0 | — |
| Margin | Base margin rate (< $25K) | 13.20% | — |
PFOF: Accepts payment for order flow on equities; accepts PFOF on options. E*TRADE accepts PFOF on equities and options.
Margin rates vs. peers
Effective interest rate by debit balance. Lower is better. Step-line — rate is constant within each tier.
Cash sweep
Default cash sweep
3.60%(E*TRADE Premium Savings (manual))
Default brokerage sweep yields near 0%. Premium Savings is a separate FDIC-insured deposit account requiring manual transfer.
As of May 13, 2026
Asset coverage
- Yes
US stocks (NYSE/Nasdaq/AMEX)
- Limited
OTC / penny stocks
$6.95 flat on sub-$1 names
- No
Fractional shares
Only via DRIP or robo — no fractional on individual stock orders
- Yes
Options (single & multi-leg)
- Yes
Mutual funds
6,000+ funds
- Yes
ETFs
- Yes
US Treasuries
- Yes
Corporate / muni bonds
- No
Forex
- Yes
Futures
$1.50/$2.50 per contract
- Limited
Crypto (direct)
BTC/ETH/SOL at 50 bps; launched May 2026
- Yes
IPOs
- Limited
International stocks
- Limited
24-hour overnight equity trading
~20 large-cap ETFs only
Platforms & tools
Platform deep-diveWeb
Power E*TRADE
- Level II quotes, conditional orders, custom strategies
- Strong options analytics with paper trading
- Advanced charting with technical studies
- +1 more — see platform deep-dive
Web
E*TRADE.com
- Integrated trade ticket; screeners
- Morgan Stanley research integration
Mobile
E*TRADE Mobile
- Full options chain
- Mobile check deposit
- Premium Savings management
API
Power E*TRADE API
- REST API for algorithmic trading
- OAuth-based authentication
Key capabilities at a glance
- Commission
- $0 listed
- Fractional shares
- No
- Extended hours
- Yes
- Overnight (24/5)
- Yes
~20 eligible · Limited to ~20 large-cap ETFs
- Options
- $0.65
- OTC access
- 4/5 full, 1/5 limited
- Penny-stock surcharge
- $6.95 flat on penny stocks
- Short locate
- moderate
OTC market access by tier
OTC Markets organises non-exchange-listed securities into five tiers by disclosure quality. E*TRADE (Morgan Stanley)’s coverage:
- OTCQXFull
- OTCQBFull
- Pink CurrentFull
- Pink LimitedFull
- Grey MarketLimited
Awards & recognition
- 2026 Best Web Platform — StockBrokers.com
- 2025 Best for Active Trading — NerdWallet
Recent changes
- product
Spot crypto launched (BTC/ETH/SOL at 50 bps)
- pricing
Margin rate schedule updated
Frequently asked
- Does E*TRADE offer fractional shares?
- No — not on individual stock orders. Fractional exposure is only available via DRIP (dividend reinvestment) or the robo-advisor product. For dollar-based investing, Fidelity ($1) or Robinhood ($1) are better choices.
- What is the E*TRADE cash sweep yield?
- The default brokerage sweep yields near 0%. To earn meaningful interest, transfer to the separate E*TRADE Premium Savings account at ~3.6% APY — this requires manual movement, unlike Fidelity's automatic 3.26% SPAXX sweep.
- Does E*TRADE charge for penny stocks?
- Yes. E*TRADE imposes a $6.95 flat commission on stocks priced ≤ $1, while standard stocks remain commission-free.
- What is Power E*TRADE?
- E*TRADE's flagship active-trader platform. It includes Level II quotes, conditional orders, custom strategy builders, paper trading, and advanced charting — competitive with Power E*TRADE Pro and thinkorswim for retail use.
Notes
Does not pay publishers — link for editorial completeness only.
