You're thinking of selling some stock and wondering about ETRADE's charges, aren't you? It's a smart question to ask, because understanding fees is crucial to maximizing your investment returns. Let's dive deep into ETRADE's fee structure for selling stock in 2025 and equip you with all the knowledge you need!
How Much Does E*TRADE Charge When You Sell Stock? A Comprehensive Guide
The good news, and let's get this out of the way upfront, is that for most online US-listed stock trades, ETRADE charges $0 commission. Yes, that's right – zero dollars for buying and selling common stocks and ETFs listed on major US exchanges when you do it yourself online. This has become the industry standard for many major online brokers, and ETRADE is no exception.
However, "most" doesn't mean "all." There are nuances and specific situations where fees might apply. Let's break it down step-by-step.
Step 1: Confirm Your Asset Type and Trading Method
Before anything else, let's identify what you're selling and how you plan to sell it. This is the first and most critical step in determining if any charges will apply.
Sub-heading: US-Listed Stocks and ETFs (Online Self-Directed Trades)
The Golden Rule: For the vast majority of individual investors selling common stocks or Exchange Traded Funds (ETFs) that are listed on a US exchange (like the NYSE or NASDAQ) through the ETRADE website or mobile app, the commission is $0. This is a fantastic benefit for everyday traders and long-term investors alike. You won't pay a direct commission to ETRADE for these transactions.
Sub-heading: Other Investment Products and Trading Methods
Here's where things can get a little more complex. Fees may come into play for:
Over-the-Counter (OTC) Securities: These are stocks that trade outside of major exchanges, often referred to as "penny stocks." E*TRADE does charge a commission for these. As of 2025, it's typically $6.95 per trade. This fee might be reduced to $4.95 if you're an active trader, executing 30 or more stock, ETF, or options trades per quarter.
Foreign Stock Transactions: If you're selling stocks listed on international exchanges, E*TRADE will likely charge a commission. The specific fees can vary, so it's always best to check their detailed pricing schedule or contact their customer service for these.
Options Trades: While E*TRADE also offers commission-free online options trades, there's a per-contract fee. The standard options contract fee is $0.65 per contract. However, if you execute 30 or more stock, ETF, and options trades per quarter, this fee drops to $0.50 per contract.
Mutual Funds: ETRADE offers a large selection of "no-transaction-fee" (NTF) mutual funds, for which you won't pay a commission to ETRADE when you buy or sell. However, some mutual funds do carry transaction fees, or even early redemption fees if you sell within a short period (e.g., 90 days). These fees are typically disclosed in the fund's prospectus.
Bonds: Selling bonds also incurs a fee, typically around $1.00 per bond, with a minimum of $10 and a maximum of $250.
Futures: Futures contracts have their own per-contract, per-side fees, generally $1.50 per contract per side, plus additional regulatory fees.
Broker-Assisted Trades: If you call E*TRADE and have a representative place the trade for you, there's a $25 service charge per trade. This is an important distinction! Always try to execute your trades online or through their mobile app to avoid this fee.
Large Block Transactions Requiring Special Handling: Very large or complex trades might involve special handling and thus incur additional fees. This is generally for institutional or very high-net-worth clients.
Stock Plan Account Transactions: If your stock comes from an employee stock plan, there might be a separate commission schedule.
Step 2: Understand Regulatory and Exchange Fees
Even if E*TRADE charges $0 commission, there are still small, unavoidable fees levied by regulatory bodies and exchanges. These are passed on to you, the investor, regardless of which brokerage you use. They are typically very small and calculated per share or per transaction, making their impact on most retail trades negligible.
Sub-heading: Common Regulatory Fees
SEC Fee (Securities and Exchange Commission Fee): This fee is charged by the SEC when you sell an equity security. For fiscal year 2025, the SEC has announced that the fee rate for most securities transactions will be $0.00 per million dollars for covered sales occurring on or after May 14, 2025. Prior to that, it was $27.80 per million dollars. This means that for now, this fee is effectively zero for most individual investors.
FINRA Trading Activity Fee (TAF): This fee is charged by the Financial Industry Regulatory Authority (FINRA) on sales of exchange-listed securities. It's designed to cover FINRA's costs of regulating broker-dealers. It's typically a fraction of a cent per share, with a maximum per trade. For example, it might be around $0.000166 per share for equity sales, with a cap of $8.30 per trade. This amount is so minuscule that for a typical retail trade, you'll see a few cents at most.
Step 3: Account for Potential Transfer-Out Fees
This isn't a fee for selling stock, but it's related to moving your investments. If you decide to transfer your entire ETRADE account, or even just a portion of your assets, to another brokerage, ETRADE charges an Account Transfer Out (ACAT) fee. As of 2025, this is typically $75 for a full transfer and $25 for a partial transfer. This is a fee charged by many brokers to cover the administrative costs of transferring assets.
Step 4: Consider Margin Interest (If Applicable)
If you're trading on margin (borrowing money from ETRADE to buy securities), selling stock to cover a margin call or simply reduce your margin balance doesn't incur a selling fee per se. However, you will have been paying margin interest on the borrowed funds. ETRADE's margin rates vary based on the amount borrowed, but they can be significant. As of early 2025, rates can range from around 13.20% for balances under $10,000 to 11.20% for balances of $250,000 or more. This isn't a selling fee, but it's a cost associated with holding positions on margin that you might be resolving through a sale.
Step 5: Understand Potential Tax Implications
While not a direct fee charged by E*TRADE, remember that selling stock can trigger capital gains or losses, which have tax implications. This is a crucial "cost" to consider when realizing profits. It's highly recommended to consult with a tax professional to understand how selling your stock will impact your tax situation.
Key Takeaways
Most common scenario: For online sales of US-listed stocks and ETFs, E*TRADE charges $0 commission.
Watch out for: OTC stocks, foreign stocks, options per-contract fees, mutual fund transaction fees, bonds, futures, and especially broker-assisted trades.
Small, unavoidable fees: Regulatory fees (SEC, FINRA TAF) are tiny and generally negligible for retail investors.
Transfer-out fees: If you move your account, a fee will apply.
Tax implications: Always consider the capital gains/losses when selling.
10 Related FAQ Questions
Here are 10 common questions about E*TRADE fees, focusing on "How to" for practical guidance:
How to avoid E*TRADE stock selling commissions?
You can avoid E*TRADE stock selling commissions by always placing your trades online (via their website or mobile app) for US-listed stocks and ETFs. Broker-assisted trades and sales of OTC or foreign stocks will incur commissions.
How to find E*TRADE's detailed fee schedule?
You can find E*TRADE's detailed fee schedule by visiting their official website, typically under sections like "Pricing," "Fees & Commissions," or "Rates." Look for a link that breaks down all their charges.
How to calculate the exact regulatory fees on my stock sale?
While E*TRADE's trade confirmation will show you the exact amount, you can generally estimate regulatory fees as a very small fraction of a cent per share for the FINRA TAF (e.g., $0.000166 per share) and $0 for the SEC fee (as of May 14, 2025, for covered sales). For most retail trades, these amount to only a few cents.
How to determine if a mutual fund has a transaction fee on E*TRADE?
When searching for or reviewing a mutual fund on ETRADE's platform, look for indications like "No Transaction Fee (NTF)" or information within the fund's prospectus that details any purchase or redemption fees. ETRADE highlights NTF funds.
How to sell options on E*TRADE without incurring per-contract fees?
You cannot sell options on E*TRADE without incurring per-contract fees. The standard fee is $0.65 per contract, or $0.50 per contract if you make 30+ trades per quarter. This is a standard charge across most brokers for options.
How to lower the per-contract fee for options trades on E*TRADE?
To lower the per-contract fee for options trades from $0.65 to $0.50, you need to execute at least 30 stock, ETF, and options trades within a quarter. This volume discount is automatically applied once you meet the threshold.
How to avoid the broker-assisted trade fee on E*TRADE?
To avoid the $25 broker-assisted trade fee, always place your orders yourself using the ETRADE website, the ETRADE Mobile app, or the Power E*TRADE platform. Only call a representative for assistance if absolutely necessary.
How to transfer assets out of E*TRADE to another broker without paying a fee?
While E*TRADE charges a $75 full transfer-out fee ($25 for partial), some receiving brokers may offer to reimburse you for this fee as an incentive to transfer your account to them. Check with the new brokerage you are considering.
How to understand the tax implications of selling stock on E*TRADE?
To understand the tax implications, keep track of your cost basis (original purchase price plus commissions and fees, if any) and your selling price. The difference is your capital gain or loss. This information is typically available in your E*TRADE account statements and tax documents (like Form 1099-B). Consulting a qualified tax advisor is always recommended for personalized advice.
How to check for any hidden fees when selling stock on E*TRADE?
E*TRADE is generally transparent with its fees. "Hidden fees" are rare, but any charges will be listed on your trade confirmation statement. Always review your confirmation after a trade. If you're concerned about a specific type of investment or transaction, check their detailed "Pricing" or "Commission Schedule" pages on their website, or contact their customer service directly for clarification before you execute the trade.
