Ready to Cash Out? Your Step-by-Step Guide to Selling Stock on E*TRADE!
Have you been eyeing that profit, or perhaps it's time to rebalance your portfolio? Whatever your reason, knowing how to efficiently sell your stocks on E*TRADE and convert those investments into cold, hard cash is a crucial skill for any investor. This comprehensive guide will walk you through every step of the process, ensuring a smooth and successful transaction.
Step 1: Engage Your Inner Investor - Log In and Assess Your Portfolio
Before you click any "sell" buttons, let's get you logged in and familiar with your current holdings. This is where the magic begins!
Accessing Your Account: Open your web browser or the ETRADE mobile app. Go to the ETRADE website (us.etrade.com) or launch the app on your smartphone.
Secure Login: Enter your User ID and Password. Remember to always use strong, unique passwords and consider enabling two-factor authentication for added security.
Dashboard Dive: Once logged in, you'll land on your E*TRADE dashboard. Take a moment to survey your portfolio. Locate the account holding the stock you wish to sell. You'll typically see a summary of your positions, including the symbol, quantity, current price, and gain/loss. This is your opportunity to confirm you're in the right place and have a clear picture of your investment.
Step 2: Navigate to the Trading Platform - Find Your Selling Tool
Now that you've surveyed your holdings, it's time to access the trading interface where you can execute your sell order.
Locate the "Trade" or "Trading" Tab: On the E*TRADE website, you'll usually find a "Trade" or "Trading" tab prominently displayed in the main navigation menu. In the mobile app, look for a similar icon, often represented by an arrow or a dollar sign. Click or tap this to proceed.
Select "Stocks & ETFs" (or similar): Within the trading section, you'll likely see various investment types. Choose "Stocks & ETFs" or "Stock Trading" to ensure you're in the correct module for selling individual stocks.
Step 3: Choose Your Stock and Initiate the Sell Order
This is where you specify what you want to sell.
Enter the Stock Symbol: In the designated "Symbol" or "Quote" box, type in the ticker symbol of the stock you wish to sell (e.g., AAPL for Apple Inc., MSFT for Microsoft Corp.). As you type, E*TRADE will often provide suggestions; select the correct one.
Select "Sell": After entering the symbol, you'll typically see options to "Buy" or "Sell." Carefully select "Sell." This is a crucial step – you don't want to accidentally buy more!
Account Selection (if applicable): If you have multiple E*TRADE accounts, ensure you select the correct account from which to sell the stock.
Step 4: Define Your Order Type - Market, Limit, and Beyond
This is one of the most critical decisions when selling stock, as it dictates how your order will be executed. E*TRADE offers various order types to suit different strategies.
Understanding Order Types:
Market Order: This is the simplest and fastest way to sell. A market order executes immediately at the best available price in the market. While it guarantees execution, you don't control the exact price you receive, which can be a slight risk in volatile markets. Use this if you want to sell quickly and are comfortable with the current market price.
Limit Order: A limit order allows you to set a specific price at which you want to sell your stock. Your order will only execute if the stock's price reaches or exceeds your specified limit price. If the price doesn't hit your limit, your order won't be filled. Use this if you have a target selling price and are willing to wait for it.
Stop Order (Stop-Loss Order): A stop order becomes a market order once the stock reaches a specific "stop price." It's often used to limit potential losses on a position. If the stock price falls to or below your stop price, your order converts to a market order and sells at the best available price. Be aware: in fast-moving markets, the actual selling price might be lower than your stop price.
Stop-Limit Order: This combines aspects of both stop and limit orders. When the stock reaches your "stop price," it triggers a limit order instead of a market order. This means your stock will only sell if it hits your stop price and can be executed at or above your specified limit price. This offers more price control than a regular stop order but carries the risk of not being filled if the price drops too quickly past your limit.
Choosing Your Order Type: Select the order type that best aligns with your selling strategy and risk tolerance. For most quick cash-out scenarios, a Market Order is often used for its immediacy.
Step 5: Enter the Quantity of Shares to Sell
Specify exactly how many shares you wish to sell.
Number of Shares: In the "Quantity" or "Shares" field, enter the exact number of shares you want to sell. You can choose to sell a portion of your holdings or your entire position.
Review Your Holdings: Double-check that the quantity you're entering does not exceed the number of shares you own in that specific account.
Step 6: Set Your Time in Force (If Applicable)
The "Time in Force" dictates how long your order will remain active if it's not immediately filled (primarily relevant for Limit or Stop orders).
Common Time in Force Options:
Day: The order will remain active only until the end of the current trading day. If not executed, it expires. This is often the default for most orders.
Good-Til-Cancelled (GTC): The order remains active until it's executed or until you manually cancel it. E*TRADE typically has a maximum duration for GTC orders (e.g., 60 days).
Immediate or Cancel (IOC): Any portion of the order that can be filled immediately is executed, and the remaining unexecuted portion is canceled.
Fill or Kill (FOK): The entire order must be filled immediately and completely, or it is canceled.
Select Your Preference: For market orders, "Day" is usually the only relevant option. For limit or stop orders, consider how long you want your offer to remain open.
Step 7: Review and Confirm Your Order
This is your last chance to catch any errors before executing the trade.
Order Summary: E*TRADE will present a comprehensive summary of your sell order. Carefully review every detail:
Action: Should say "SELL"
Symbol: Ensure it's the correct stock ticker.
Quantity: Confirm the number of shares.
Order Type: Verify your chosen order type (Market, Limit, Stop, etc.).
Price (if Limit/Stop): Double-check your specified limit or stop price.
Time in Force: Confirm the duration.
Estimated Proceeds: E*TRADE will often provide an estimate of the cash you'll receive from the sale (before fees).
Commissions/Fees: Note any applicable commissions or regulatory fees. While E*TRADE generally offers $0 commissions for online US-listed stock trades, other fees may apply.
Confirm and Submit: If everything looks correct and you're confident in your order, click the "Place Order" or "Confirm Trade" button. Once submitted, market orders typically execute almost instantly. Limit and stop orders will remain active until their conditions are met or they expire/are canceled.
Step 8: Understanding Settlement Time (T+1)
You've sold your stock, but the cash isn't immediately available for withdrawal. This is due to the "settlement period."
The T+1 Rule: As of May 28, 2024, the standard settlement period for most stock transactions in the US is T+1. This means the trade date (T) plus one business day. So, if you sell stock on a Monday, the funds will typically settle and be available for withdrawal on Tuesday.
Impact of Holidays: Keep in mind that banking holidays are not considered business days. If a holiday falls on a Tuesday after a Monday sale, settlement would be pushed to Wednesday.
Funds Available for Trading: While funds from a sale may be immediately available to reinvest in other securities, they are generally not immediately available for withdrawal until settlement.
Step 9: Withdrawing Your Cash - Getting Funds to Your Bank
Once your trade has settled (T+1), you can initiate a withdrawal to your linked bank account.
Navigate to "Transfer & Pay": Log back into your E*TRADE account and look for a "Transfer & Pay" or "Move Money" section.
Select "External Transfer" or "Withdraw Money": Choose the option to transfer funds to an external bank account.
Choose Source and Destination Accounts: Select your E*TRADE brokerage account as the source and your linked bank account as the destination. If you haven't linked a bank account yet, you'll need to do so first.
Linking a Bank Account: This typically involves providing your bank's routing number and your account number. E*TRADE will usually send small "test deposits" to verify the account, which you'll need to confirm on their platform. This process can take a few business days.
Enter the Amount: Specify the exact amount of cash you wish to withdraw.
Review and Confirm: Double-check all the transfer details, including the amount, source, and destination accounts.
Submit Transfer: Confirm the transfer. ACH (Automated Clearing House) transfers to external bank accounts typically take 1-3 business days to appear in your bank account.
Other Withdrawal Options: E*TRADE may also offer other withdrawal methods, such as:
Wire Transfer: Generally faster (often same-day or next-day) but usually incurs a fee ($25 for outgoing wires). Best for larger sums or urgent transfers.
Check Request: You can request a physical check to be mailed to you. This is the slowest option.
E*TRADE Debit Card: If you have an E*TRADE checking account and linked debit card, you might be able to access funds via ATM withdrawals or purchases, subject to daily limits.
Step 10: Monitoring Your Transfer
Check Your E*TRADE Account: You can usually view the status of your pending transfers within the "Transfer & Pay" section of your E*TRADE account.
Check Your Bank Account: Keep an eye on your linked bank account for the incoming deposit.
10 Related FAQ Questions:
How to Check My E*TRADE Account Balance After Selling Stock?
You can check your E*TRADE account balance by logging into your account and navigating to your portfolio summary or account details page. The cash balance will update once the trade settles (T+1).
How to Link a Bank Account to E*TRADE for Withdrawals?
Log in to ETRADE, go to "Transfer & Pay," then "Add a Bank Account." You'll need to provide your bank's routing and account numbers. ETRADE will send small test deposits to verify the account, which you'll confirm on their platform.
How to Know When My Stock Sale Has Settled on E*TRADE?
Stock sales on ETRADE typically settle on T+1 (trade date plus one business day). You can see the settlement date in your trade confirmations or by checking your account activity history on the ETRADE platform.
How to Avoid Fees When Selling Stock on E*TRADE?
E*TRADE offers $0 commission for online US-listed stock trades. To avoid additional fees, place your trades online rather than through a broker ($25 fee) and be mindful of regulatory or exchange fees that may still apply.
How to Cancel a Pending Stock Sell Order on E*TRADE?
If your order hasn't been executed yet (e.g., a limit order not yet met), you can usually cancel it by going to your "Order Status" or "Pending Orders" section on E*TRADE and selecting the option to cancel the specific order. Market orders execute too quickly to be canceled.
How to Handle Partial Fills on E*TRADE Stock Sales?
For limit orders, a partial fill means only a portion of your requested shares were sold. The remaining shares will stay as an active order until they are filled or the order expires/is canceled. You will see the executed portion reflected in your trade confirmations.
How to Withdraw Large Sums of Cash from E*TRADE?
For larger withdrawals, consider using a wire transfer. While it incurs a fee, it's generally faster than ACH transfers. Ensure your linked bank account can handle the incoming amount, and confirm any daily withdrawal limits with E*TRADE or your bank.
How to Get a Physical Check from E*TRADE?
You can typically request a physical check by navigating to the "Transfer & Pay" section and selecting the "Request a Check" option. You'll need to provide your mailing address and the amount. Be aware that this is the slowest withdrawal method.
How to Contact E*TRADE Customer Service for Selling Issues?
If you encounter any issues, you can contact E*TRADE customer service by phone at 800-387-2331. Their contact information is also available on their website under the "Contact Us" section.
How to Use My E*TRADE Debit Card to Access Funds from Stock Sales?
If you have an E*TRADE checking account and a linked debit card, once your stock sale proceeds have settled and are available in your checking account, you can use the debit card for ATM withdrawals (up to daily limits, typically $1,000) or for purchases wherever Mastercard is accepted (up to $5,000 per day).
