BROKER REVIEW Updated January 2025

E*TRADE Review 2025

Pioneer of online trading, now backed by Morgan Stanley. Up to $10,000 in bonuses, solid platforms, and good options pricing for active traders.

4.3 / 5
Our Rating
Commissions: $0
Options: $0.50-$0.65
Margin Rate: 11.20%
Current Bonus: Up to $10K

💰 Current Promotion (Expires Jan 31, 2025)

Up to $10,000 bonus with qualifying deposits. Use code OFFER25. $1,000,000+ deposit required for maximum bonus.

The Bottom Line

E*TRADE was a pioneer in online trading and remains a solid choice, especially for options traders who qualify for the $0.50/contract rate. The Morgan Stanley backing adds stability.

However, high margin rates (11.20%) and PFOF usage put it behind Fidelity and Public for many investors.

What E*TRADE Does Best

Aggressive Bonuses

E*TRADE regularly offers some of the highest transfer bonuses in the industry. The current up to $10,000 offer is compelling for large account transfers.

Power E*TRADE Platform

The Power E*TRADE platform offers advanced charting, options analysis, and streaming data. It's particularly good for options traders with visual strategy builders.

Options Pricing for Active Traders

Base rate is $0.65/contract, but active traders (30+ trades/quarter) get $0.50/contract—competitive with traditional brokers.

Morgan Stanley Integration

Access to Morgan Stanley research and potential banking integration for those who want everything in one ecosystem.

Where E*TRADE Falls Short

High Margin Rates

At 11.20%, E*TRADE's margin rates are among the highest. Compare to Public (4.9%) or Robinhood Gold (5.75%).

PFOF

E*TRADE uses payment for order flow. Fidelity and Public don't.

Outpaced by Competitors

Robinhood offers free options. Webull offers higher IRA match. Fidelity offers better service. E*TRADE is good but not exceptional in any category except bonuses.

Who Should Use E*TRADE

  • Large transfers chasing the bonus
  • Active options traders who qualify for $0.50 pricing
  • Morgan Stanley customers wanting integration

Who Should Look Elsewhere

  • Margin users: Rates are too high
  • Casual options traders: Robinhood is free
  • Those who want no PFOF: Fidelity is better

The Verdict

E*TRADE is a solid, established broker that's best for capturing big transfer bonuses or if you're already in the Morgan Stanley ecosystem. For most investors, Fidelity or Schwab offer more value.

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