Introduction
Etrade is one of the largest online brokers in the world, offering a range of products and services for both individual and institutional investors. As an online broker, Etrade charges fees for its services, including trading fees. In this article, we explore how much does Etrade charge per trade, and compare them to other brokers.
Comparing Etrade’s Trading Fees to Other Online Brokers
When it comes to trading fees, Etrade is not the cheapest option. According to a study by Investopedia, Etrade’s stock and ETF commissions are higher than most of its competitors, such as TD Ameritrade, Fidelity, Charles Schwab, and Interactive Brokers. For example, Etrade charges $6.95 per trade for stocks and ETFs, while TD Ameritrade charges $0 for the same trades.
However, it is important to note that Etrade also offers some unique features that may be worth the additional cost. For example, Etrade provides a wide range of advanced trading tools, such as real-time market data, charting tools, and more. Additionally, Etrade offers a wide selection of mutual funds and commission-free ETFs, which make it a great choice for those looking for a low-cost way to invest in mutual funds.
Exploring the Different Costs of Trading on Etrade
In addition to its per-trade commissions, Etrade also charges other types of fees. These include account maintenance fees, margin interest, and other miscellaneous fees. Here is a breakdown of the different costs of trading on Etrade:
Commissions
As mentioned above, Etrade charges a flat fee of $6.95 per trade for stocks and ETFs. This fee applies to both market and limit orders, as well as options contracts. There are no minimum or maximum order sizes, so you can trade as little or as much as you want without incurring additional fees.
Account Maintenance Fees
Etrade charges a quarterly account maintenance fee of $25 for accounts with less than $5,000 in assets. This fee can be waived if you maintain a balance of at least $5,000 in your account. Additionally, Etrade charges an additional fee of $50 for accounts with less than $10,000 in assets. This fee can also be waived if you maintain a balance of at least $10,000 in your account.
Margin Interest
Etrade charges interest on margin loans. The rate depends on the amount borrowed and the type of security being traded. For example, the current margin loan rate for stocks is 3.25%, while the rate for futures is 7.50%.
Analyzing Etrade’s Per-Trade Pricing Structure
In addition to the fees outlined above, Etrade also charges additional fees for certain types of trades. These include fees for extended hours trading, international trading, and direct routing. Additionally, Etrade charges a $25 fee for paper statements, and a $30 fee for wire transfers.
It is important to note that Etrade also offers discounted rates for active traders. For example, active traders who make 30 or more trades per quarter qualify for a reduced commission rate of $4.95 per trade. Additionally, customers who hold at least $1 million in assets with Etrade receive free trades.
Breaking Down Etrade’s Trading Fees by Type of Trade
Etrade’s fees vary depending on the type of trade. Here is a breakdown of Etrade’s fees for different types of trades:
Stocks and ETFs
Etrade charges a flat fee of $6.95 per trade for stocks and ETFs. This fee applies to both market and limit orders, as well as options contracts.
Options
Etrade charges a base fee of $6.95 per trade, plus an additional fee of $0.75 per contract. The total cost of an options trade is calculated by adding the base fee and the per-contract fee.
Mutual Funds
Etrade charges a flat fee of $19.99 per trade for mutual funds. This fee applies to both load and no-load funds.
Futures
Etrade charges a flat fee of $1.50 per contract for futures trades. This fee applies to both market and limit orders.
Evaluating the Value of Trading with Etrade Compared to Other Brokers
When evaluating the value of trading with Etrade, it is important to consider both the advantages and disadvantages. On the one hand, Etrade offers a wide range of advanced trading tools, such as real-time market data, charting tools, and more. Additionally, Etrade offers a wide selection of mutual funds and commission-free ETFs, which make it a great choice for those looking for a low-cost way to invest in mutual funds.
On the other hand, Etrade’s trading fees are higher than most of its competitors. Additionally, its account maintenance fees and margin interest rates can add up quickly. Therefore, it is important to weigh the pros and cons before choosing Etrade as your online broker.
Conclusion
In conclusion, Etrade is a popular online broker with a wide range of products and services. However, its trading fees are higher than most of its competitors. Additionally, Etrade charges account maintenance fees and margin interest, which can add up quickly. It is important to weigh the pros and cons before choosing Etrade as your online broker.
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