Step 1: The Golden Standard: $0 Commission for Core Assets
Let's kick things off with the most popular and often highlighted aspect of E*TRADE's pricing – commission-free trading. This is a major win for many investors and applies to a broad range of widely traded securities.
Sub-heading: What's Truly Free?
E*TRADE proudly offers $0 commission for online trades of the following U.S.-listed assets:
Stocks: Whether you're buying or selling shares of a company listed on a major U.S. exchange (like the NYSE or Nasdaq), you generally won't pay a commission to E*TRADE for the trade itself. This is fantastic news for frequent stock traders.
Exchange-Traded Funds (ETFs): Similar to stocks, online trades of U.S.-listed ETFs are commission-free. ETFs offer diversification and are a popular choice for many portfolios, making this a significant benefit.
No-Load, No-Transaction-Fee Mutual Funds: ETRADE provides access to a vast selection of mutual funds that do not charge an upfront sales load (a commission paid to the broker) or a transaction fee for buying or selling through ETRADE. It's crucial to note that while ETRADE doesn't charge a transaction fee, the mutual fund itself will have an expense ratio*, which is an ongoing annual fee deducted from the fund's assets, covering management and operational costs. Always check the fund's prospectus for these details.
Think of these as your everyday groceries at a discount supermarket – no extra charge at the checkout counter for the basic items. This zero-commission structure significantly lowers the barrier to entry for new investors and makes it more cost-effective for active traders dealing in these specific asset classes.
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| How Much Does Etrade Cost Per Trade |
Step 2: Unpacking Options Trading: Per-Contract Charges and Discounts
While the base stock and ETF trades are free, options trading follows a different fee structure, which can vary based on your trading volume.
Sub-heading: Standard Options Contract Fee
For most investors, E*TRADE charges a standard $0.65 per options contract. This fee applies to both equity options and index options. So, if you buy or sell one options contract, you'll pay $0.65. If you trade 10 contracts, that's $6.50.
Sub-heading: Volume-Based Discount for Active Options Traders
E*TRADE rewards more active options traders. If you execute 30 or more stock, ETF, and options trades per quarter, your options contract fee drops to a more favorable $0.50 per contract. This can add up to significant savings for high-volume options traders.
Tip: Stop when confused — clarity comes with patience.
Sub-heading: Beyond E*TRADE's Fee: Regulatory and Exchange Charges
It's important to remember that in addition to ETRADE's per-contract fee*, options trades are also subject to various regulatory and exchange fees. These are not charged by E*TRADE directly but are passed through from the relevant regulatory bodies and exchanges. These fees are typically very small, often just a few cents per contract, but they are a component of the total cost. Examples include:
Options Regulatory Fee (ORF): Charged by exchanges to cover regulatory costs.
Exchange Fees: Fees charged by the options exchanges for facilitating the trade.
Index Option Fees (IOF): Specific fees for trading options on certain indices like the S&P 500 (SPX), Russell 2000 (RUT), or Nasdaq 100 (NDX), which can range from a few cents to over 50 cents per contract depending on the index.
Step 3: Navigating the Futures Market and Cryptocurrency Futures
Futures trading, due to its complex nature and higher leverage, has its own distinct fee structure. E*TRADE offers access to a wide range of futures contracts.
Sub-heading: Standard Futures Contracts
For most standard futures contracts (e.g., commodities, currencies, interest rates), E*TRADE charges $1.50 per contract, per side.
What does "per side" mean? It means you pay the fee when you open a position (one side) and again when you close it (the other side). So, a round-trip trade (buy and then sell, or sell and then buy) for one contract would cost $3.00 in E*TRADE's commission.
Sub-heading: Cryptocurrency Futures
Given the growing interest in digital assets, E*TRADE also facilitates trading in cryptocurrency futures. These carry a slightly higher commission: $2.50 per contract, per side.
Again, this means a round-trip trade for one crypto futures contract would cost $5.00 in E*TRADE's commission.
Sub-heading: Additional Futures Fees
Similar to options, futures trading involves other costs beyond ETRADE's commission*. These are typically pass-through fees from exchanges and regulatory bodies:
Futures Exchange Fees: Charged by the specific futures exchange (e.g., CME Group, ICE US, CFE) where the contract is traded. These vary by exchange and contract.
National Futures Association (NFA) Fees: A regulatory fee charged by the NFA.
Floor Brokerage Charges: If you place a non-electronically traded futures or futures options contract, there might be additional floor brokerage charges.
Tip: The details are worth a second look.
Step 4: Understanding Bond and Over-the-Counter (OTC) Securities Costs
Not all securities trade on major exchanges. Bonds and certain smaller, less liquid stocks (OTC) have unique fee structures.
Sub-heading: Online Secondary Bond Trades
When trading bonds online in the secondary market (meaning you're buying from or selling to another investor, not directly from the issuer), E*TRADE charges $1.00 per bond. There's a minimum charge of $10 and a maximum charge of $250 per trade.
For example, if you buy 5 bonds, you'd pay $5.00 (5 x $1.00), but due to the minimum, you'd pay $10. If you buy 300 bonds, you'd pay $250 (as $300 would exceed the $250 maximum).
Important exception: Online trades of U.S. Treasury auctions are typically $0.
Sub-heading: Over-the-Counter (OTC) Securities (e.g., Penny Stocks)
OTC securities, including those traded on the OTC Bulletin Board (OTCBB) and Pink Sheets, often involve smaller companies or foreign securities not listed on major exchanges. These trades come with a commission:
Standard OTC Trade: $6.95 per trade.
Volume-Based OTC Discount: If you make 30 or more stock, ETF, and options trades per quarter, this fee is reduced to $4.95 per trade.
This is a critical distinction: While major US-listed stocks are $0, OTC stocks are not. Be mindful of this if you dabble in penny stocks or less common foreign securities.
Step 5: When a Human Helps: Broker-Assisted Trades
While E*TRADE promotes self-directed online trading, sometimes you might need the assistance of a live broker to place a trade. This convenience comes at an additional cost.
Sub-heading: The Broker-Assisted Fee
If you place a trade over the phone with an E*TRADE broker, you will generally be charged an additional $25 fee on top of any applicable commissions for the specific security.
Reminder: Focus on key sentences in each paragraph.
For instance, if you call a broker to buy 100 shares of a U.S.-listed stock (which would be $0 online), you'd pay $25 for the broker's assistance. If you call to trade options, it would be $25 + the per-contract options fee.
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Sub-heading: A Key Exception
There's one notable exception to the broker-assisted fee: it is generally waived for Extended Hours overnight session trades placed via a broker between 4 a.m. and 7 a.m. ET. This is a niche scenario, but good to know for early-bird traders.
Step 6: Beyond the Trade: Understanding Other Potential E*TRADE Fees
Beyond the direct costs of placing a trade, there are several other fees you might encounter depending on your account activity, chosen services, and investment products.
Sub-heading: Margin Interest Rates
If you trade on margin (borrow money from E*TRADE to amplify your purchasing power), you'll pay interest on the borrowed amount. These rates are variable and typically tiered, meaning the more you borrow, the lower your interest rate might be. As of July 2025, rates can range from around 13.20% for balances under $10,000 down to approximately 11.20% for balances of $250,000 or more. These rates are subject to change based on market conditions (like the federal funds rate).
Sub-heading: Account Transfer Fees
If you decide to transfer your entire ETRADE account to another brokerage (a full ACAT transfer), ETRADE typically charges a $75 fee. For a partial transfer, the fee is generally $25.
Sub-heading: Wire Transfer Fees
Incoming Wire Transfers: E*TRADE generally charges $0 for incoming wire transfers to your account.
Outgoing Wire Transfers: For outgoing wire transfers, there's usually a $25 fee.
QuickTip: Read step by step, not all at once.
Sub-heading: Managed Portfolio Fees
E*TRADE offers various professionally managed portfolio solutions, such as Core Portfolios. These services come with an annual advisory fee, typically charged as a percentage of the assets under management. For Core Portfolios, this fee is often around 0.30% annually for balances of $500+. Dedicated and Blend portfolios may have higher, tiered fees.
Sub-heading: Retirement Account (IRA) Specific Fees
While opening and maintaining an IRA at E*TRADE is generally free, certain actions can trigger fees:
IRA Premature Distributions: If you take an early withdrawal from your IRA (before age 59½), E*TRADE may charge a $25 fee. (Note: This is separate from any IRS penalties for early withdrawals).
Excess Contribution Withdrawals: If you contribute more to your IRA than the annual limit and need to withdraw the excess, E*TRADE might charge a $25 fee.
Changing Contribution Type: Switching a contribution from a Roth IRA to a Traditional IRA can also incur a $25 fee.
Sub-heading: Miscellaneous Account Activity and Request Fees
A variety of other less common activities or special requests can also incur fees:
Mandatory Corporate Actions (e.g., mergers, reverse stock splits): ~$38
Voluntary Corporate Actions (e.g., tender offers): ~$38
Stock Certificate Requests (domestic): ~$60 per certificate
Foreign Stock Certificate Requests: ~$250 per certificate
Overnight Mail: ~$25
Stop Payment Requests: ~$25
Electronic Transfer Returned due to Insufficient Funds: ~$25
Paper Statement Copies: ~$5 per copy (if you don't opt for electronic statements)
Conclusion: Making Informed Decisions
As you can see, the question of "how much does E*TRADE cost per trade" isn't a simple one-size-fits-all answer. For the most common online trades of U.S.-listed stocks and ETFs, it's a fantastic $0. However, diversifying into options, futures, bonds, or OTC securities, or requiring specific services, will introduce various other fees.
The key takeaway is to align your chosen trading activities with ETRADE's pricing structure.* If you're primarily a stock and ETF investor, you'll likely enjoy a very low-cost experience. If you plan on active options trading, hitting that 30+ trades per quarter threshold can save you money. Always review E*TRADE's official pricing and rates page for the most up-to-date and detailed information. Being informed is your best defense against unexpected costs and can significantly impact your overall investment returns.
Frequently Asked Questions (FAQs)
Here are 10 related "How to" questions to further clarify E*TRADE's fee structure:
How to avoid E*TRADE stock trading fees?
To avoid E*TRADE stock trading fees, simply trade online U.S.-listed stocks. These are commission-free.
How to get the options trading discount on E*TRADE?
To receive the options trading discount ($0.50 per contract instead of $0.65), you need to execute at least 30 stock, ETF, and options trades per quarter.
How to find the most up-to-date E*TRADE fee schedule?
The most up-to-date E*TRADE fee schedule can always be found on their official website, typically under a "Pricing and Rates" or "Fees" section.
How to minimize E*TRADE futures trading costs?
To minimize futures trading costs, be aware of the "per side" charge and consider the total round-trip cost. Also, avoid non-electronically traded contracts if possible, as they may incur additional floor brokerage charges.
How to avoid fees for mutual fund trades on E*TRADE?
To avoid transaction fees for mutual fund trades, choose "no-load, no-transaction-fee" mutual funds offered by E*TRADE. Remember that all mutual funds have underlying expense ratios.
How to reduce E*TRADE broker-assisted trade fees?
The best way to reduce broker-assisted trade fees is to place your trades online. The $25 fee is largely for the convenience of speaking with a representative. The fee is waived for overnight session trades placed via a broker between 4 a.m. and 7 a.m. ET.
How to check my margin interest rate on E*TRADE?
Your specific margin interest rate on ETRADE will depend on your debit balance. You can usually find the current rates and the tier structure on ETRADE's website, or by logging into your account and checking your margin details.
How to initiate an account transfer out of E*TRADE?
To initiate an account transfer out of ETRADE, typically you would start the process with the receiving brokerage firm. They will often have forms to facilitate the Automated Customer Account Transfer Service (ACATS) process, which ETRADE will then respond to. Be aware of the $75 full transfer fee.
How to understand regulatory fees on E*TRADE?
Regulatory fees are small, pass-through charges mandated by regulatory bodies and exchanges, not E*TRADE itself. While they are automatically deducted, you can see them itemized on your trade confirmation statements.
How to fund an E*TRADE account without incurring fees?
You can typically fund an ETRADE account without incurring fees through methods like ACH transfers (electronic transfers from your bank), direct deposits, or incoming wire transfers (ETRADE doesn't charge for incoming wires). Mailing a check is also usually free.
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