A Guide to Selling Your Stock on E*TRADE: From Decision to Dollars
Have you been eyeing that stock in your ETRADE portfolio, wondering when the perfect moment to sell might be? Perhaps you've reached your profit target, or maybe you're looking to rebalance your portfolio. Whatever your reason, selling stock can seem a bit daunting if you're not familiar with the process. But don't worry, you're in the right place! This comprehensive guide will walk you through every step of selling your stock on ETRADE, ensuring a smooth and confident transaction.
Step 1: Are You Ready to Sell? (Engage!)
Before we dive into the technicalities, let's start with the most crucial question: Why are you selling? Seriously, take a moment to consider this. Is it because:
You've hit your profit target and want to lock in your gains?
The company's fundamentals have changed, and you believe the stock will decline?
You need the cash for another investment or personal expense?
You're rebalancing your portfolio to maintain your desired asset allocation?
You're looking to harvest losses for tax purposes?
Understanding your motivation is key. It will influence the type of order you place and your overall strategy. Emotional decisions can often lead to regrettable outcomes, so always approach selling with a clear head and a well-defined plan.
 |
| How Do I Sell My Stock On Etrade |
Step 2: Logging In and Navigating the E*TRADE Platform
This is where your journey to selling begins.
2.1 Accessing Your Account
Go to the E*TRADE Website or Open the Mobile App: Navigate to etrade.com on your web browser or launch the E*TRADE mobile app on your smartphone or tablet.
Log In Securely: Enter your User ID and Password. E*TRADE emphasizes security, so be prepared for any multi-factor authentication steps they may require (e.g., a code sent to your phone).
2.2 Finding Your Portfolio
Once logged in, you'll typically land on your dashboard or a summary of your accounts.
Locate Your Portfolio/Holdings: Look for a section labeled "Portfolio," "Accounts," or "Holdings." This is where you'll see a list of all the investments you currently own.
Identify the Stock to Sell: Scroll through your holdings and find the specific stock you wish to sell. You'll usually see its ticker symbol, company name, current price, and the number of shares you own.
Step 3: Initiating the Sell Order
Tip: Don’t overthink — just keep reading.
Now that you've identified the stock, it's time to tell E*TRADE you want to sell it.
Click "Sell" or "Trade": Next to the stock you want to sell, or within the stock's detailed view, you'll find a button or link typically labeled "Sell" or "Trade." Click on this to open the order entry screen.
Step 4: Specifying Your Order Details
This is the most critical part, where you define exactly how you want your stock to be sold.
4.1 Number of Shares
Enter the Quantity: On the order entry screen, you'll see a field to enter the number of shares you want to sell. You can sell all your shares or a partial amount. Be precise here! Double-check the number before proceeding.
4.2 Choosing Your Order Type
This is a crucial decision that impacts how your trade is executed. E*TRADE offers various order types to suit different strategies. Here are the most common ones:
Market Order:
What it is: An order to buy or sell immediately at the best available current market price.
When to use it: When you prioritize immediate execution over a specific price. Useful for highly liquid stocks where price fluctuations are minimal.
Caveat: You are not guaranteed a specific price. In volatile markets, the execution price might be slightly different from what you saw when you placed the order.
Limit Order:
What it is: An order to buy or sell a security at a specific price or better. For a sell limit order, it will only execute at your specified limit price or higher.
When to use it: When you want to control the selling price and are willing to wait for the market to reach your desired price.
Caveat: There's no guarantee of execution. If the stock never reaches your limit price, your order won't be filled.
Stop Order (Stop-Loss Order):
What it is: An order to sell a stock once its price reaches a specified "stop price." Once the stop price is triggered, it becomes a market order.
When to use it: Primarily used to limit potential losses on a position. You set a stop price below the current market price.
Caveat: Since it becomes a market order once triggered, the execution price is not guaranteed and could be lower than your stop price in a fast-moving market (this is known as "slippage").
Stop-Limit Order:
What it is: A combination of a stop order and a limit order. When the stop price is reached, it triggers a limit order instead of a market order.
When to use it: When you want to limit losses but also want to control the minimum selling price.
Caveat: Like a limit order, there's no guarantee of execution if the market moves past your limit price after the stop is triggered.
4.3 Time in Force
This specifies how long your order remains active.
Day Order: Your order is active only for the current trading day and expires at market close if not filled.
Good 'Til Canceled (GTC): Your order remains active for an extended period (typically up to 60 or 180 days on E*TRADE, check their specific policy) unless it's filled or you cancel it.
Extended Hours: Allows your order to be active during pre-market and after-hours trading sessions. Use with caution, as liquidity can be lower and volatility higher during these times.
Step 5: Reviewing and Confirming Your Order
Carefully Review All Details: Before you hit that final button, take a moment to double-check every single detail on the order confirmation screen.
Are you selling the correct stock?
Is the number of shares accurate?
Have you selected the desired order type (Market, Limit, Stop, Stop-Limit)?
Is the limit price or stop price set correctly?
Is the time in force appropriate?
Are there any estimated commissions or fees displayed? (For US-listed stocks and ETFs, E*TRADE typically offers $0 commission for online trades, but always confirm for specific scenarios like OTC or foreign stocks.)
Confirm and Place Order: If everything looks correct, click the "Place Order" or "Confirm" button. You'll usually receive an order confirmation number.
Reminder: Short breaks can improve focus.
Step 6: Monitoring Your Order and Settlement
Once your order is placed, the work isn't quite done.
6.1 Order Status
Check Order Status: You can typically find your active orders under a "Order Status" or "Pending Orders" section on the E*TRADE platform. This will show you if your order is pending, partially filled, or filled.
Notifications: E*TRADE may send you email or mobile notifications once your order is filled.
6.2 Settlement Time (T+1)
Understanding Settlement: When you sell a stock, the transaction isn't instantly finalized. There's a settlement period, which is the time it takes for the securities to be delivered to the buyer and the cash to be delivered to you.
Current Standard: As of May 28, 2024, the standard settlement cycle for most US stock transactions is T+1, meaning Trade Date plus One business day. So, if you sell on a Monday, the funds will typically settle and be available on Tuesday.
Step 7: Accessing Your Funds
Once your trade has settled, the proceeds from your sale will be available in your E*TRADE brokerage account.
7.1 Withdrawal Options
E*TRADE offers several ways to withdraw your funds:
Electronic Funds Transfer (ACH): This is the most common and convenient method. You can transfer funds directly from your E*TRADE account to a linked bank account. This usually takes 1-3 business days.
Navigate to "Transfer Money" or "Withdraw Funds" within your E*TRADE account.
Select your linked bank account and the amount you wish to transfer.
Confirm the details.
Wire Transfer: For faster access to larger sums, you can initiate a wire transfer. Wire transfers typically arrive within one business day but often incur a fee.
Check Request: You can request a physical check to be mailed to your address. This is the slowest method.
Final Considerations
Tax Implications: Selling stock can have significant tax implications, especially if you realize capital gains.
Short-Term Capital Gains: If you held the stock for one year or less, your gains will be taxed at your ordinary income tax rate.
Long-Term Capital Gains: If you held the stock for more than one year, your gains will be taxed at a lower, preferential long-term capital gains rate.
Always consult a tax professional for personalized advice regarding your specific situation. E*TRADE provides tax documents (like Form 1099-B) that report your sales, but they do not offer tax advice.
Commissions and Fees: While online US-listed stock and ETF trades are typically commission-free on E*TRADE, be aware of potential exceptions for OTC securities, foreign stocks, or trades placed through a broker. Regulatory and exchange fees may also apply.
Account Type: The process described generally applies to standard brokerage accounts. If you're selling stock in a retirement account (like an IRA), there might be specific rules regarding withdrawals and penalties, especially if you're under retirement age.
Tip: Review key points when done.
10 Related FAQ Questions
How to Check My Stock Holdings on E*TRADE?
You can check your stock holdings by logging into your E*TRADE account and navigating to the "Portfolio" or "Accounts" section on your dashboard.
How to Place a Limit Order on E*TRADE?
To place a limit order, select the stock you want to sell, choose "Sell" in the trade ticket, then select "Limit" as the order type and enter your desired limit price.
How to Place a Stop-Loss Order on E*TRADE?
To place a stop-loss order, select the stock, choose "Sell," then select "Stop" as the order type and enter the price at which you want the order to become a market order.
How to Cancel a Pending Order on E*TRADE?
You can cancel a pending order by going to the "Order Status" or "Pending Orders" section of your account and selecting the option to cancel the specific order.
How to Determine My Cost Basis for a Stock on E*TRADE?
QuickTip: A slow read reveals hidden insights.
E*TRADE typically tracks your cost basis for you. You can usually find this information within the detailed view of your stock holdings or in your account statements.
How to Link My Bank Account to E*TRADE for Withdrawals?
You can link your bank account by navigating to the "Transfer Money" or "Banking" section within your E*TRADE account and following the instructions to add an external bank account.
How to Withdraw Money from E*TRADE After Selling Stock?
Once your stock sale has settled (typically T+1), you can initiate an electronic funds transfer (ACH) from your E*TRADE account to your linked bank account via the "Transfer Money" section.
How to Understand the Settlement Cycle (T+1) for Stock Sales?
The T+1 settlement cycle means that the funds from your stock sale will be officially available in your E*TRADE account one business day after the trade is executed.
How to Find My E*TRADE Account Statements for Tax Purposes?
You can typically access your account statements and tax documents (like Form 1099-B) within the "Documents" or "Tax Center" section of your E*TRADE account.
How to Contact E*TRADE Customer Service if I Have Issues Selling My Stock?
You can contact E*TRADE customer service by phone (typically 800-387-2331) or through their secure messaging system within the platform. Check the "Contact Us" section on their website or app for specific contact details.
 |
