E*TRADE from Morgan Stanley
Overview
E*TRADE from Morgan Stanley is a veteran of the online brokerage industry, renowned for its excellent web-based platforms and user-friendly interface. Following its acquisition by Morgan Stanley (completed in 2020), it has integrated deeper research capabilities and wealth management features. It is a particularly strong choice for active traders who prefer web-based tools over downloadable software, as well as for investors looking for a vast selection of mutual funds and educational resources.
Key Specifications
| Account Minimum | $0 |
|---|---|
| Stock & ETF Trade Fee | $0 (Online US listed) |
| Options Fee | $0.65 per contract ($0.50 if 30+ trades/quarter) |
| Futures Fee | $1.50 per contract (plus fees) |
| Fractional Shares | No (Only via Dividend Reinvestment or Robo-Advisory) |
| Uninvested Cash Interest | Very Low (~0.01% - 0.15% APY standard sweep) |
Trading Platforms
1. Power E*TRADE (Web & Mobile)
The jewel in E*TRADE's crown is the "Power E*TRADE" platform. Unlike many competitors that require a desktop download for advanced features, Power E*TRADE runs entirely in a web browser. It is famous for its intuitive interface, interactive charts, and risk analysis tools. It is widely considered one of the best web-based platforms for options trading.
2. E*TRADE Web
The standard website (etrade.com) handles account management, research, and basic trading. It provides access to streaming real-time data, analyst research reports, and screening tools for stocks, funds, and bonds.
3. E*TRADE Mobile App
The standard app is designed for everyday investors, offering easy access to portfolio monitoring, news, and basic trade execution. (Note: Active traders generally prefer the separate "Power E*TRADE" app).
Investment Features
- No True Fractional Shares: A notable limitation compared to Fidelity or Robinhood is that you cannot place buy orders for fractional shares (e.g., "Buy $50 of TSLA"). Fractional shares are only available through dividend reinvestment (DRIP).
- Morgan Stanley Research: Clients get access to institutional-grade research and market commentary from Morgan Stanley's strategists.
- Automated Investing: "Core Portfolios" offers robo-advisory services (0.30% annual fee, $500 minimum) for hands-off investors.
- Bank Integration: Through Morgan Stanley Private Bank, E*TRADE offers high-yield savings accounts and checking services, though these are separate from the brokerage sweep.
Account Types
E*TRADE supports a wide variety of account structures:
- Individual & Joint Brokerage
- Traditional, Roth, & Rollover IRAs
- SEP-IRA & SIMPLE IRA
- Beneficiary IRAs
- Custodial Accounts (UTMA/UGMA)
- Coverdell ESA
- Investment Club Accounts