Have you been holding onto some stocks in your ETRADE account and now you're ready to cash in on your investment? Whether you're looking to lock in profits, cut losses, or rebalance your portfolio, selling stocks on ETRADE is a straightforward process. This comprehensive guide will walk you through every step, ensuring a smooth and confident transaction. Let's get started!
Ready to turn your investments into cash?
If you're anything like most investors, at some point you'll want to sell some of your holdings. E*TRADE, a popular online brokerage, offers a robust platform for managing your investments, including the ability to sell stocks with ease. But how exactly do you navigate the platform to execute a sale? That's what we're here to explain, step-by-step, to make sure your selling experience is as seamless as possible.
Step 1: Accessing Your E*TRADE Account
The very first step to selling any stock on ETRADE is to log in to your account. It might sound obvious, but ensuring you're on the official and secure ETRADE website or using their verified mobile app is paramount for your financial security.
Sub-heading: Logging In Securely
Website: Open your web browser and go to
us.etrade.com. Look for the "Log On" button, usually located at the top right corner of the page.Mobile App: Launch the E*TRADE mobile app on your smartphone or tablet.
Enter Credentials: Input your User ID and Password.
Two-Factor Authentication (2FA): If you have 2FA enabled (and you absolutely should!), you'll be prompted to enter a verification code sent to your registered mobile device or email. This adds an extra layer of security and protects your account from unauthorized access.
Once successfully logged in, you'll land on your E*TRADE dashboard, which provides an overview of your portfolio and account balances.
Step 2: Navigating to the Trade Section and Selecting Your Stock
With your account securely accessed, your next move is to find the functionality that allows you to place a trade.
Sub-heading: Finding the "Trade" Option
Website: On the E*TRADE website, look for a tab or menu option typically labeled "Trade" or "Trading". This is your gateway to initiating buy and sell orders.
Mobile App: In the mobile app, you'll usually find a "Trade" icon or tab at the bottom or top of the screen, or within a main menu.
Sub-heading: Identifying the Stock to Sell
Once in the "Trade" section:
Search for the Stock: You can often find a search bar where you can type the ticker symbol or the company name of the stock you wish to sell. For example, if you want to sell Apple stock, you'd type "AAPL".
Select from Portfolio: Alternatively, if the stock is already in your portfolio, you might see an option to select it directly from your holdings. This is often more convenient as it will automatically populate some of the details.
Click "Sell": After selecting the stock, you'll typically see options to "Buy" or "Sell." Choose the "Sell" option to proceed.
At this point, the trade ticket will appear, ready for you to input your specific selling instructions.
Step 3: Specifying Your Order Details
This is where you define the parameters of your sale. Understanding these options is crucial for executing your trade effectively.
Sub-heading: Quantity of Shares
Enter Shares: Input the exact number of shares you wish to sell. Be careful to enter the correct amount, as an incorrect entry could lead to an unintended sale.
"Sell All" Option: Some platforms, including E*TRADE, may offer a "Sell All" button if you intend to liquidate your entire position in that particular stock.
Sub-heading: Choosing an Order Type
This is a critical decision that impacts how your trade is executed. E*TRADE offers several order types, each with its own advantages and disadvantages:
Market Order:
Description: This order instructs E*TRADE to sell your shares immediately at the best available current market price.
Pros: Guarantees execution. Your order will almost certainly be filled.
Cons: Does not guarantee a specific price. In fast-moving markets, the price at which your order is executed might be slightly different from the last quoted price you saw. This is known as "slippage."
When to Use: When immediate execution is your top priority and you are comfortable with the prevailing market price.
Limit Order:
Description: This order allows you to set a specific minimum price you are willing to accept for your shares. Your order will only execute if the stock's price reaches or exceeds your specified limit price.
Pros: Guarantees a minimum selling price, giving you more control.
Cons: No guarantee of execution. If the stock's price never reaches your limit, your order won't be filled.
When to Use: When you have a target selling price and are willing to wait for it to be met, even if it means the order might not execute.
Stop Order (or Stop-Loss Order):
Description: A stop order becomes a market order once the stock's price hits or falls below a specified "stop price."
Pros: Can help limit potential losses if a stock's price starts to fall.
Cons: Once the stop price is triggered, it becomes a market order, meaning the execution price is not guaranteed and could be significantly lower than your stop price in volatile markets.
When to Use: As a risk management tool to protect against significant downside.
Stop-Limit Order:
Description: A hybrid of stop and limit orders. It becomes a limit order once the stock's price hits your specified "stop price." The order will then only execute at your limit price or better.
Pros: Offers more control over the execution price compared to a regular stop order, as it won't execute below your limit.
Cons: No guarantee of execution. If the price drops rapidly past your limit price after hitting the stop, the order may not fill.
When to Use: When you want to limit losses but also want some control over the selling price.
Sub-heading: Order Duration (Time-in-Force)
This determines how long your order remains active in the market.
Day Order (DAY):
Description: The order is active only for the current trading day. If it's not executed by the end of the trading session, it expires.
When to Use: For most typical trades where you want the order to be filled quickly or within the current day.
Good-Till-Canceled (GTC):
Description: The order remains active until it's executed or you manually cancel it. E*TRADE typically keeps GTC orders active for 60 days, though this can vary.
When to Use: For limit or stop orders where you're willing to wait for an extended period for your target price to be met.
Carefully consider your investment strategy and risk tolerance when choosing your order type and duration.
Step 4: Reviewing and Submitting Your Order
Before you hit that final "Place Order" button, a thorough review is essential. This is your last chance to catch any errors.
Sub-heading: Double-Checking Details
Stock Symbol: Is it the correct company?
Action: Is it "Sell" and not "Buy"?
Quantity: Are you selling the intended number of shares?
Order Type: Have you selected the appropriate market, limit, or stop order?
Price (for limit/stop orders): Is your limit or stop price accurate?
Time-in-Force: Is the duration set correctly?
Estimated Proceeds: E*TRADE will usually show you an estimated amount you'll receive from the sale (before fees).
Sub-heading: Understanding Fees and Taxes
Commissions: E*TRADE generally offers $0 commission for online US-listed stock trades. However, there might be fees for broker-assisted trades, OTC (Over-the-Counter) stocks, or certain complex order types. Always review the fee disclosure on the order confirmation screen.
Regulatory Fees: Small regulatory fees may apply to sell orders. These are usually negligible but good to be aware of.
Tax Implications: Selling stocks can trigger capital gains or losses, which have tax implications. We'll touch on this later, but it's crucial to understand that selling a stock is a taxable event.
Sub-heading: Submitting the Order
Confirm and Submit: If all the details are correct and you understand the potential implications, click the "Place Order" or "Submit Order" button. You might be asked to confirm one more time.
Once submitted, your order will be sent to the market for execution.
Step 5: Monitoring Your Order and Confirmation
After submission, it's important to keep an eye on your order's status.
Sub-heading: Checking Order Status
Order Status Page: E*TRADE provides an "Order Status" or "Activity" section where you can monitor your pending orders.
"Filled" or "Executed": If your order is a market order, it will likely be filled almost immediately. Limit and stop orders may remain "Pending" until their conditions are met.
"Partially Filled": Sometimes, especially with larger orders or less liquid stocks, your order might be partially filled. This means only a portion of your requested shares have been sold. The remaining shares will stay active until fully filled or canceled.
"Canceled": If you decide you no longer want to sell, or if a Day Order expires, you'll see the status as "Canceled."
Sub-heading: Trade Confirmation
Notification: E*TRADE will send you a confirmation (usually via email or a notification within the platform) once your order is fully executed. This confirmation will detail the number of shares sold, the execution price, and any applicable fees.
Settlement Date: Remember that stock trades typically settle in T+2 business days (Trade Date + 2 business days). This means the cash from your sale will be available in your E*TRADE account for withdrawal on the settlement date.
Keep a record of your trade confirmations for your personal records and for tax purposes.
Step 6: Withdrawing Funds (Optional)
Once your trade has settled, the funds from your sale will be available in your E*TRADE brokerage account. You can then choose to reinvest them or withdraw them.
Sub-heading: Initiating a Withdrawal
Navigate to Transfers: Look for a "Transfer & Pay" or "Move Money" section within your E*TRADE account.
Select "Withdraw": Choose the option to withdraw funds.
Choose Destination: You'll typically have options to transfer funds to a linked bank account (via ACH), request a wire transfer, or request a check. ACH transfers are usually the most common and cost-effective.
Enter Amount: Specify the amount you wish to withdraw.
Review and Confirm: Double-check the details and confirm the withdrawal request.
Sub-heading: Processing Time
ACH Transfers: Typically take 1-3 business days to reach your linked bank account after the trade has settled.
Wire Transfers: Usually faster, often processed within one business day, but typically incur higher fees.
Checks: The slowest option, taking several business days to arrive by mail.
Be mindful of any daily withdrawal limits E*TRADE may have in place.
Important Considerations When Selling Stock
Tax Implications: Selling stock often results in a capital gain or loss.
Short-Term Capital Gains: If you held the stock for one year or less, profits are taxed at your ordinary income tax rate.
Long-Term Capital Gains: If you held the stock for more than one year, profits are taxed at a lower, more favorable long-term capital gains rate.
Cost Basis: E*TRADE will track your cost basis (the original price you paid for the stock, plus any commissions). When you sell, this cost basis is used to calculate your gain or loss. You can usually choose a lot selection method (e.g., FIFO - First-In, First-Out, or Specific Lot Identification) to optimize your tax outcome, especially if you bought shares at different prices. Consult with a tax advisor for personalized guidance.
Market Volatility: In rapidly moving markets, the price you see might not be the exact price you get, especially with market orders.
Liquidity: For thinly traded stocks (those with low trading volume), it might be harder to sell a large number of shares quickly without significantly impacting the price.
Selling Strategy: Have a clear reason for selling. Are you rebalancing, taking profits, or cutting losses? Emotional selling can lead to poor decisions.
10 Related FAQ Questions
Here are some common questions you might have about selling stocks on E*TRADE:
How to determine if it's the right time to sell a stock?
The "right time" depends on your individual investment goals, risk tolerance, and the original thesis for buying the stock. Consider factors like company performance, market conditions, your portfolio diversification, and whether you've reached your profit target or stop-loss limit.
How to sell a partial position in a stock on E*TRADE?
When placing your sell order, simply enter the specific number of shares you wish to sell, rather than selecting a "sell all" option. This allows you to liquidate only a portion of your holdings.
How to cancel a pending sell order on E*TRADE?
Go to your "Order Status" or "Activity" section within your E*TRADE account. Locate the pending order you wish to cancel and there should be an option to "Cancel" it. Be aware that market orders usually execute too quickly to be canceled.
How to check the fees associated with selling a stock on E*TRADE?
ETRADE generally offers $0 commission for online US-listed stock trades. However, any applicable regulatory fees or fees for specific order types (like broker-assisted trades or OTC stocks) will be displayed on the order confirmation screen before you finalize your trade. You can also review ETRADE's pricing page on their website.
How to handle capital gains and losses after selling stock?
E*TRADE will provide you with tax documents (like Form 1099-B) that report your proceeds and cost basis from stock sales. You'll use this information to calculate your capital gains or losses when filing your income taxes. Short-term gains are taxed at ordinary income rates, while long-term gains are taxed at more favorable rates. Consult a tax professional for personalized advice.
How to link a bank account to E*TRADE for withdrawals?
You can link your bank account to ETRADE by navigating to the "Transfer & Pay" or "Move Money" section and selecting "Link External Account." You'll typically need to provide your bank's routing number and your account number, and ETRADE may use a small deposit verification process to confirm the link.
How to sell a stock that is no longer listed or is delisted?
Selling delisted or illiquid stocks can be challenging. You might need to contact E*TRADE's customer service directly to explore options, as these stocks may not be tradable through the standard online platform. They might require special handling or be sold via the OTC market.
How to understand "settlement date" when selling stock?
The settlement date is the official date when ownership of the stock is transferred from the seller to the buyer, and the cash is transferred from the buyer to the seller. For most stock trades, this occurs on T+2 business days (Trade Date + 2 business days). The funds from your sale will not be fully available for withdrawal until after the settlement date.
How to protect against market volatility when selling?
Using limit orders can help protect against adverse price movements by ensuring you don't sell below a certain price. Stop-limit orders offer a similar level of protection. Avoiding market orders during periods of extreme volatility can also reduce the risk of significant slippage.
How to get assistance if I encounter issues selling stock on E*TRADE?
E*TRADE offers various customer support channels. You can usually find contact information (phone numbers, email addresses, or live chat options) on their website under a "Contact Us" or "Support" section. For urgent trading issues, a phone call is often the most effective method.