E*TRADE Review (2026)

Facts checked October 19, 2026 against E*TRADE's own fee schedules, rate pages, disclosures and regulator records (15 sources, listed below). We re-check prices about once a month. We do not earn a commission from E*TRADE (Morgan Stanley).

E*TRADE at a glance

How E*TRADE works

E*TRADE is the self-directed arm of Morgan Stanley. Since E*TRADE Securities LLC stopped doing business in December 2023, brokerage accounts are carried by Morgan Stanley Smith Barney LLC, and futures by E*TRADE Futures LLC. Morgan Stanley reported $1,802 billion in self-directed client assets and 8.8 million self-directed households for the third quarter of 2026, a channel that includes E*TRADE. The account trades stocks, ETFs, options, futures, bonds and mutual funds, and Morgan Stanley Private Bank offers savings, checking and CDs alongside it.

The options price depends on how often you trade. The standard fee is $0.65 a contract, and it drops to $0.50 for clients who execute at least 30 stock, ETF and options trades a quarter. Hypothetically, a trader who places 40 options trades a quarter at 5 contracts each pays for 200 contracts: 200 x $0.65 = $130 at the standard rate, or 200 x $0.50 = $100 at the lower one. That is $30 a quarter and $120 a year saved. Closing a short option at 10 cents or less carries no contract fee. The cost block below shows the standard-rate cost for a less active trader, plus cash, margin and transfer costs; our options platform guide compares other brokers.

Uninvested cash goes to the Bank Deposit Program, which E*TRADE calls the only sweep vehicle for most clients. It paid 0.01% APY on balances up to $499,999 on October 19, 2026, and is FDIC insured up to $500,000 for individual and $1,000,000 for joint accounts once certain conditions are met. Morgan Stanley Private Bank Premium Savings, a separate bank account, advertised 4.25% for 6 months for new accounts; we found no end date for that offer as of October 19, 2026. For other options see our high-yield savings comparison.

New clients can get a cash credit with code OFFER26 for a new non-retirement brokerage account funded with $1,000 or more of new money within 60 days. The account must be opened and funded by October 31, 2026, and the assets must stay for 12 months after the 60-day window or the credit may be taken back. The page shows the top credit as up to $1,000 or $1,500 (one figure struck through) and the deposit-to-credit table did not load, so check the amount on E*TRADE's page before you rely on it.

Who E*TRADE fits, and who should skip it

Limitations to know

• Paper statements cost $2.00 each, charged quarterly, unless you take e-statements, the account is a retirement or custodial account, or you hold $10,000 or more in linked E*TRADE accounts. [1]
• Crypto (bitcoin, ether and solana) is traded in a separate zerohash account at 0.50% of the trade value, part of which goes to E*TRADE; it is not a brokerage account and is not SIPC or FDIC protected. [9]
• Fractional trading is open only to eligible stocks and ETFs, starting with an S&P 100 group and expanding in waves; OTC stocks, BRK.A and Morgan Stanley stock are excluded. [4]
• Margin rates for balances of $500,000 and more are not published; E*TRADE asks you to call. [1]
• Morgan Stanley Private Bank Max-Rate Checking pays 0.05% APY on balances up to $10,000 and 2.00% above that, and the rates are not blended. [6]
• Mandatory or voluntary corporate actions such as mergers and tender offers cost $38, and a forced margin liquidation costs $25. [1]

E*TRADE compared with alternatives

• Pick Fidelity if you want $0 to transfer out and a money market fund as the core position for cash.
• Pick Charles Schwab if you want 24/5 trading in over 1,300 stocks and ETFs and fractional shares of most US-listed stocks.
• Pick Interactive Brokers if you borrow on margin and want 5.380% up to $100,000 on IBKR Pro, with no ACATS transfer fee.
• Pick Tastytrade if you trade stock options and want $0 to close with commissions capped at $10 per leg.

Security and privacy

• The E*TRADE from Morgan Stanley Customer Protection Guarantee says you are not liable for unauthorized third-party use of your account through no fault of your own. It covers Self-Directed brokerage accounts and Morgan Stanley Private Bank deposit accounts only. [11]
• Morgan Stanley Smith Barney is a SIPC member. Its excess SIPC insurance has a $1 billion firmwide cap for securities and a $1.9 million per-client limit for uninvested cash. [7]
• In September 2022 the SEC charged Morgan Stanley Smith Barney with failing to protect the personal data of about 15 million customers when disposing of devices; it agreed to a $35 million penalty. [15]
• In December 2024 the SEC ordered Morgan Stanley Smith Barney to pay a $15,000,000 civil penalty over policies that failed to stop four financial advisers, in its adviser channel rather than E*TRADE, from misappropriating client funds. [13]
• In September 2020 FINRA fined E*TRADE Securities $2,250,000 over 1,338 inaccurate blue sheet submissions to FINRA and 4,855 to the SEC. [14]
• Morgan Stanley receives payment for order flow on E*TRADE orders: $0.43 a contract on equity options, and $0.002 a share on market and marketable limit stock orders, in Q2 2026. [10]
• We could not read E*TRADE's list of two-factor sign-in options, so they are not listed here. [11]

Recent changes

E*TRADE FAQ

Is E*TRADE safe?

E*TRADE accounts are carried by Morgan Stanley Smith Barney LLC, a FINRA-registered broker-dealer (CRD 149777) and SIPC member, with excess SIPC coverage of $1.9 million per client for cash. The Customer Protection Guarantee covers unauthorized third-party use that is not your fault. Morgan Stanley Smith Barney has paid SEC penalties, including $35 million in 2022 over customer data on disposed devices.

Does E*TRADE charge for options?

Yes, $0.65 a contract with no base commission, or $0.50 a contract if you execute at least 30 stock, ETF and options trades a quarter. Exercise and assignment are free, closing a short option at 10 cents or less has no contract fee, and index options add a fee such as $0.54 a contract on SPX.

What does E*TRADE pay on cash?

Uninvested cash in the Bank Deposit Program earned 0.01% APY on balances up to $499,999 on October 19, 2026, 0.05% from $500,000 to $999,999 and 0.15% at $1 million and more. Compare <a href="/money-market-funds/">money market funds</a> for idle cash.

Is E*TRADE good for beginners?

It has no account minimum or maintenance fee, $0 stock and ETF trades and 24-hour phone support. Fractional shares are still limited to eligible stocks, starting with an S&P 100 group, with a $5 minimum, and swept cash earns 0.01% APY. The Core Portfolios robo charges 0.30% a year with a $500 minimum; see <a href="/robo-advisors/">robo-advisors</a> for others.

E*TRADE vs Schwab?

Both charge $0 for stocks and ETFs and $0.65 an options contract, but E*TRADE drops to $0.50 with 30+ trades a quarter and charges $1.50 per futures contract against <a href="/brokers/schwab/">Schwab</a>'s $2.25. Schwab charges $50 to transfer out against E*TRADE's $75, has lower margin rates at every published tier and offers fractional shares of most US-listed stocks.

How do I transfer out of E*TRADE, and what does it cost?

You start the transfer at the receiving broker. E*TRADE charges $75 for a full outgoing transfer; its pricing page does not list a fee for partial transfers or a separate IRA closing fee.

How we researched this review

We did not get paid or receive a free account for this page. We read E*TRADE's own pricing page, help center, security and privacy pages and app-store listing on October 19, 2026, quoted each fact from those pages, and link every one below. We did not run a long-term hands-on test, so we do not score the app; where a point rests on what the company says rather than something we can check, we attribute it to E*TRADE. Cost figures are our own arithmetic. We re-check prices and plans about once a month and log changes in the table above.

Sources

1. E*TRADE from Morgan Stanley, Pricing and rates, checked October 19, 2026.
2. E*TRADE, Brokerage account, checked October 19, 2026.
3. E*TRADE, Our accounts, checked October 19, 2026.
4. E*TRADE, Fractional shares, checked October 19, 2026.
5. E*TRADE, Sweep rates for uninvested cash, checked October 19, 2026.
6. E*TRADE, Bank rates (Morgan Stanley Private Bank), checked October 19, 2026.
7. E*TRADE, Asset protection (SIPC, excess SIPC, FDIC), checked October 19, 2026.
8. E*TRADE, How to place a trade during extended hours, checked October 19, 2026.
9. E*TRADE, Crypto, checked October 19, 2026.
10. Morgan Stanley Wealth Management, SEC Rule 606 report, second quarter 2026, checked October 19, 2026.
11. E*TRADE, Security center, checked October 19, 2026.
12. Morgan Stanley, Financial supplement for the third quarter of 2026 (SEC EDGAR), checked October 19, 2026.
13. FINRA BrokerCheck, Morgan Stanley Smith Barney LLC detailed report (PDF), checked October 19, 2026.
14. FINRA BrokerCheck, E*TRADE Securities LLC detailed report (PDF), checked October 19, 2026.
15. SEC, Morgan Stanley Smith Barney charged with failing to protect customer data (press release 2022-168), checked October 19, 2026.

Head-to-head comparisons

• E*TRADE vs Fidelity
• E*TRADE vs Charles Schwab
• E*TRADE vs Robinhood

This review is for general information, not investment advice. Investing involves risk, including loss of principal; margin and options can lose more than you put in. Fees and rates change; check the broker's own pages before you open or move an account.