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E*TRADE from Morgan Stanley Review: A Smart Choice for Investors of Any Level

Review Updated
Alice Hoekstra
Author: Alice Hoekstra
Alice Hoekstra
Alice Hoekstra

Alice is a content strategist for Motley Fool Money, where she has worked full-time for almost five years. Throughout her five years at The Motley Fool, Alice has worked on content across a wide range of financial topics, including credit cards, brokerages, banks, mortgages, personal loans, and auto insurance, helping readers make informed decisions with confidence. Her top financial priorities are funding her world travels and giving her cat the luxurious life she deserves. When she’s not working, traveling, or watching Friends reruns, you’ll find her at the nearest concert or Broadway show.

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Nathan Alderman
Fact Checked: Nathan Alderman
Nathan Alderman
Nathan Alderman
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Nathan Alderman has been a full-time Motley Fool employee since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As Motley Fool Money's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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If you're looking for an easy-to-use investing platform that doesn't skimp on powerful tools, E*TRADE from Morgan Stanley is worth considering. It has a clean design, plenty of investment options, and commission-free trades. Whether you're a newbie or a seasoned pro, E*TRADE is set up to help you trade smarter, not harder. Let's break it down and see why E*TRADE might be the perfect fit for your investing goals.

Ratings Methodology
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E*TRADE from Morgan Stanley

E*TRADE from Morgan Stanley

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Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
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Bottom Line

E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.

Fees:

Commission-free; other fees apply

Account Minimum:

$0

Special Offer Circle with letter I in it. Open a new eligible E*TRADE brokerage account, fund your account within 60 days of opening, and earn a cash bonus of up to $1,000, depending on the size of your deposit. Offer good for one use per customer, on a single account. Please read full terms and conditions on our website.

Open and fund a brokerage account and get up to $1,000. Terms apply.

Learn More for E*TRADE from Morgan Stanley

On E*TRADE's Secure Website.

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

Who should consider E*TRADE?

Beginners: If you're just starting out, E*TRADE makes it easy to dip your toes into the world of investing. The platform and app are super user-friendly, so you won't feel overwhelmed. Plus, the educational resources available from this brokerage can help you build confidence as you go.

Active traders: More experienced investors will love the advanced tools on E*TRADE's Power platform. From charting to screeners to simulators, E*TRADE has everything you need to craft a solid strategy.

What I like about E*TRADE

Beginner-friendly app and resources

E*TRADE's platform is perfect for beginners thanks to its clean, user-friendly design. It makes key actions like buying your first stock, monitoring your portfolio, and exploring investment options easy to navigate. Features such as customizable dashboards, watchlists, and a powerful search tool streamline the experience, so you can focus on making decisions without getting overwhelmed. The mobile app enhances this ease of use with biometric login for secure, quick access, smooth account funding, and real-time trade execution.

Plus, E*TRADE offers educational resources, interactive tools, and guided tutorials to help new investors build confidence. With its blend of simplicity and valuable features, E*TRADE makes getting started with investing stress free.

If you're new to investing and you're looking for a top investment app for beginners, E*TRADE is a great choice.

Power E*TRADE for advanced traders

If you're an advanced trader interested in a stock trading app, E*TRADE has you covered: The Power E*TRADE platform has a variety of advanced features and resources to help you plan your investing strategy in detail.

Some of the tools available with Power E*TRADE include:

  • Technical pattern recognition: Tracks support, resistance, and key events to identify potential value shifts.
  • Advanced charting tools: Offers customizable charts with indicators like MACD to spot unusual price behavior.
  • Strategy optimizer: Suggests tailored strategies based on your trading criteria and goals.
  • Options analytics: Simplifies options trading with tools like profit-loss diagrams and options chains.
  • Real-time market insights: Delivers live news, analyst reports, and market updates to keep you informed.

Retirement and education savings options

E*TRADE offers a variety of accounts, including some you might not see everywhere -- like IRA accounts for minors with earned income or Coverdell ESA accounts for education savings. This makes it a solid choice for long-term planners looking to grow wealth for retirement or college funds.

Mutual funds for beginners

Not every brokerage offers mutual funds, but E*TRADE does. Mutual funds can be a beginner's best friend since they're essentially pre-built portfolios managed by experts. When looking for a brokerage for beginners, it's important to find one that will help you get started on the right foot. Mutual funds can be a great way to kick-start your portfolio from day one.

24/7 customer service

E*TRADE has customer service all day, every day. You can get help whenever you want, whether it's through chat, email, or phone. If you're like me and want to talk to a real person, no worries! E*TRADE also has branches where you can walk in and chat face to face.

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.

Broker Best For Commissions Learn More
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Managing your finances under one roof $0 for stocks, $0 for options contracts
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On SoFi Active Investing's Secure Website.

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4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Low mutual fund fees. $0 per trade
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On J.P. Morgan Self-Directed Investing's Secure Website.

Logo for Robinhood
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
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Low fees on stocks, ETFs, crypto, and options $0 for stocks, ETFs, and options
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On Robinhood's Secure Website.

Downsides you should consider

No direct crypto trading

If you're all about cryptocurrency, E*TRADE might not be your first choice. While you can get some exposure to crypto through futures or securities, you can't trade crypto directly here. Check out our favorite crypto exchanges for a list of our experts' top-rated crypto platforms.

No fractional shares

Fractional shares are a great way to get your foot in the door with large, established companies. Some stocks can cost hundreds of dollars for a single share -- fractional shares allow you to purchase part of a share, sometimes for as little as $1. Unfortunately, E*TRADE doesn't allow these types of trades. It's a shame because this is such a beginner-friendly feature, and E*TRADE is otherwise great for beginners.

If you're interested in fractional shares, check out our list of the best brokerages for fractional shares.

Fees for advanced trades

Basic trades like stocks and ETFs are commission-free, but advanced trades -- like options or futures -- come with fees. Also, if you sell certain mutual funds too soon, there's a hefty penalty, so watch the fine print.

How to open an E*TRADE account

Getting started with E*TRADE is quick and easy:

  1. Go to the E*TRADE website or download the app.
  2. Pick your account type (brokerage, retirement, etc.).
  3. Enter your personal and financial details.
  4. Link a funding source, and you're good to go!

If you're transferring from an existing brokerage, go to our guide to learn how to move your investments: How to Transfer Stocks Between Brokerages

Final thoughts

E*TRADE is a strong choice whether you're just starting your investment journey or you've been trading for years. It has the tools, options, and resources to make investing accessible and rewarding. And with commission-free trades on stocks and ETFs, it's easy to see why so many people choose E*TRADE.

If you're ready to get started with E*TRADE, click here to go to E*TRADE's website and open an account.

FAQs

  • Absolutely! The platform is easy to use, and the educational tools can help you find your footing in the world of investment.

  • Yes, for stocks, ETFs, and mutual funds. Other products may have fees.

  • Not directly. You'll need to look elsewhere for straight-up crypto trading.