Should You Buy Stocks on E*TRADE in 2025?

If you're trying to build a flexible, low-cost investing setup right now, E*TRADE from Morgan Stanley is not perfect, but it's worth a look. It lacks some of the features other online brokers have added like fractional shares and crypto trading, so your choice depends on which gaps you can live with.

What E*TRADE still does well

1. Commission-free trading and broad investment options

You can trade U.S. stocks, ETFs, mutual funds, options, futures, and bonds without base commissions. E*TRADE also offers no-load, no-transaction-fee mutual funds and zero-expense-ratio index funds, which make it easy to invest at a low cost.

2. Power E*TRADE is built for serious traders

If you've outgrown a basic app, the Power E*TRADE platform offers advanced charting tools, real-time market data, technical analysis, and risk/reward overlays for options. It's a strong platform for active traders who want more control and insight.

3. Strong research and education resources

E*TRADE provides access to third-party research from Morningstar, Argus, and others, along with educational articles, webinars, and interactive tools. And because it's backed by Morgan Stanley, you also get access to a wider ecosystem of banking and wealth management tools.

If you're ready to open an account, check the current E*TRADE welcome bonus -- new customers can get up to $1,000 when they open and fund a qualifying brokerage account. Read our full E*TRADE from Morgan Stanley review to learn more.

Where E*TRADE could improve

No direct fractional share investing

You can't currently place fractional share orders for individual stocks. E*TRADE only allows fractional shares through dividend reinvestment or automated portfolios, not manual trades. That makes it harder to buy high-priced stocks in smaller amounts, which is something many competitors now offer.

No crypto trading -- yet

As of late 2025, E*TRADE doesn't support direct cryptocurrency trading. However, Morgan Stanley recently announced plans to enable crypto trading on E*TRADE through a partnership with Zerohash, expected to roll out in 2026. That's a promising development, but it's not available yet.

Lower cash yields and transfer fees

Uninvested cash in E*TRADE brokerage accounts earns relatively low interest compared to some competitors. There's also a $75 fee to transfer your entire account elsewhere.

Higher margin rates than peers

E*TRADE's margin borrowing rates are higher than what you'll find at brokers like Interactive Brokers or Fidelity. It also doesn't offer forex trading, which may matter to some advanced investors.

Is E*TRADE right for you in 2025?

E*TRADE remains one of the most well-rounded online brokers available. It's ideal if you:

• Trade U.S. stocks, ETFs, and options
• Value strong tools and research
• Don't mind waiting for fractional shares or crypto support

However, if your priorities include fractional investing, direct crypto trading, or higher yields on idle cash, you may prefer another broker. You might think E*TRADE is the perfect fit, but it's always worth checking out some alternatives with more trading options and features. Visit our best online brokerage page to find the perfect platform for you.

The bottom line

E*TRADE is still one of the most complete, trustworthy brokerage platforms around, even as new players continue to innovate. Its powerful trading tools, commission-free structure, and wide selection of account types make it a great choice for many investors.