Do you have vested stock on ETRADE and are ready to turn those shares into cash? Excellent! Many people find the process of selling stock a bit intimidating at first, especially when it comes to employer-granted shares like RSUs (Restricted Stock Units) or ESOPs (Employee Stock Ownership Plans). But don't worry, ETRADE makes it quite straightforward once you know the steps.
This comprehensive guide will walk you through every single step of selling your vested stock on E*TRADE, from logging in to getting your funds into your bank account. Let's get started!
Your Guide to Selling Vested Stock on E*TRADE
Step 1: Log In and Assess Your Holdings
First things first, let's get you logged in! Have you ever had that moment where you're staring at your portfolio, wondering which shares are truly "yours" to sell? Today, we're going to clarify that.
Access Your Account: Open your web browser or the E*TRADE mobile app.
If you're on the web: Go to etrade.com.
If you're using the app: Launch the E*TRADE mobile app on your device.
Enter Your Credentials: Input your User ID and Password. If you've forgotten them, use the "Forgot User ID" or "Forgot Password" links to regain access.
Navigate to Your Portfolio: Once logged in, you'll typically land on your dashboard or summary page. Look for a section or tab labeled "Portfolio", "Accounts", or "Holdings". This is where all your investments are listed.
Identify Vested Shares: For employer-granted stock (like RSUs), you might have a dedicated "Stock Plan" account or see them listed within your main brokerage account. Vested shares are those that have fulfilled their vesting schedule, meaning they are now fully owned by you and can be sold. Unvested shares cannot be sold. Make a mental note (or even a physical one!) of the specific stock ticker and the number of shares you wish to sell.
Step 2: Initiate the Sell Order
Now that you know what you want to sell, it's time to tell E*TRADE!
Find the Trade/Sell Option: Within your portfolio, locate the specific stock you want to sell. Next to it, there will usually be an option like "Trade", "Sell", or a similar button. Click on it.
Confirm "Sell": The system will often default to "Buy." Double-check that you have selected "Sell." This is a crucial step to avoid accidental purchases.
Step 3: Specify Your Order Details
This is where you tell E*TRADE how many shares you want to sell and at what price.
Sub-heading 3.1: Quantity of Shares
Enter the Number of Shares: Type in the exact number of shares you wish to sell. You can choose to sell all your vested shares or only a portion.
Tip: If you want to sell everything you hold of that specific stock, look for a "Sell All" or "Max Quantity" checkbox/option.
Sub-heading 3.2: Choose Your Order Type
This is an important decision that impacts how your sale is executed.
Market Order:
Description: This instructs E*TRADE to sell your shares immediately at the best available market price.
Pros: Fastest execution. Your order will typically be filled almost instantly during market hours.
Cons: You don't control the exact price. In volatile markets, the price you get might be slightly different from what you saw moments before. Only use a market order if you're comfortable with this potential price fluctuation.
Limit Order:
Description: This allows you to set a specific price at which you want to sell your shares. Your order will only execute if the stock's price reaches your specified limit price or higher.
Pros: You control the price. This is great if you have a target price in mind and are willing to wait for it.
Cons: Your order might not be filled if the stock doesn't reach your limit price. It could expire without executing.
How to set: You'll need to enter your desired "Limit Price."
Stop Order (and variations like Stop-Limit Order):
Description: A stop order becomes a market order once a specified "stop price" is reached. A stop-limit order becomes a limit order once the stop price is reached. These are generally used for risk management to limit potential losses, but can also be used to capture gains.
When to use: More advanced, often used by active traders. For a simple sale of vested stock, a Market or Limit order is usually sufficient.
Consideration: Be aware that a regular stop order can execute at a significantly lower price than your stop price in a fast-moving market.
Sub-heading 3.3: Time in Force (for Limit/Stop Orders)
This determines how long your order remains active.
Day Order:
Description: Your order will be active only until the end of the current trading day. If it's not filled, it will expire.
Most common choice for individual investors.
Good-Til-Canceled (GTC):
Description: Your order remains active until it's filled or you manually cancel it. E*TRADE typically has a maximum duration for GTC orders (e.g., 60 days), after which they expire.
Useful for longer-term price targets.
Step 4: Review and Submit Your Order
This is your last chance to catch any errors before executing the trade.
Review All Details Carefully: E*TRADE will present you with a summary of your order:
Stock ticker
Number of shares to sell
Order type (Market, Limit, etc.)
Limit price (if applicable)
Time in Force
Estimated proceeds
Any associated fees (though many US-listed stock sales have $0 commission on E*TRADE, regulatory fees may still apply)
Check for Accuracy: Is the quantity correct? Is the price what you intended? Is it a "Sell" order, not a "Buy"?
Confirm and Submit: If everything looks correct, click the "Place Order" or "Submit" button. You will likely receive an on-screen confirmation and an email.
Step 5: Monitor Your Order and Settlement
Once submitted, your work isn't quite done.
Order Status:
For Market Orders: Your order should execute almost immediately. You'll see a "Filled" status.
For Limit/Stop Orders: Your order status will be "Open" or "Pending" until the conditions are met. You can typically view this in your "Orders" section. If the price isn't reached, you may need to adjust or cancel it later.
Trade Confirmation: E*TRADE will provide a trade confirmation once your order is executed. This document details the exact price your shares were sold at and any associated costs. Keep this for your records, especially for tax purposes.
Settlement Period:
After your stock is sold, the funds don't appear instantly in your withdrawable cash balance. There's a "settlement period."
As of May 28, 2024, the standard settlement period for most US-listed stocks is T+1, meaning the trade date plus one business day. So, if you sell on a Monday, the funds should settle and be available for withdrawal on Tuesday. Weekends and holidays do not count as business days.
Step 6: Transfer Funds to Your Bank Account
Once the funds from your stock sale have settled, you can transfer them out of your E*TRADE brokerage account.
Navigate to Transfers: Log back into your E*TRADE account. Look for a tab or section like "Transfers", "Move Money", or "Withdraw Funds".
Select "External Transfer": You'll want to move money from your E*TRADE account to an external bank account.
Choose Source and Destination:
From: Select your E*TRADE brokerage account.
To: Select your linked bank account. If you haven't linked a bank account, you'll need to do that first. This usually involves providing your bank's routing number and your account number, and E*TRADE will send small test deposits to verify. This linking process can take a few business days.
Enter Amount: Specify the amount of cash you wish to transfer. Ensure it's equal to or less than your available cash balance (which reflects settled funds).
Review and Confirm: As with the sell order, review all transfer details carefully before confirming the transfer.
Processing Time: ACH (Automated Clearing House) transfers from E*TRADE to your bank account typically take 1-3 business days to appear in your bank account after you initiate the transfer.
Important Considerations:
Tax Implications: Selling vested stock, especially RSUs, can have significant tax consequences. The value of your RSUs at vesting is generally considered ordinary income and is reported on your W-2. When you sell them, any additional gain (or loss) between the vesting price and the sale price is subject to capital gains tax (short-term if held for less than a year after vesting, long-term if held for more than a year). ETRADE will provide a Form 1099-B for your sales, and often a supplemental sheet with adjusted cost basis information for RSUs. It is highly recommended to consult with a tax professional to understand your specific tax obligations and ensure accurate reporting.*
Fees: While E*TRADE offers $0 commission for online US-listed stock trades, there may be regulatory fees (e.g., SEC fees, FINRA trading activity fees) that are very small but still apply. For Over-the-Counter (OTC) stocks or trades placed through a broker, different fees apply. Always review the final confirmation for any charges.
Market Hours: Stock markets operate during specific hours (e.g., 9:30 AM to 4:00 PM ET for US exchanges). Orders placed outside these hours will typically be queued for the next trading day.
Holding Periods: Be mindful of how long you've held the vested stock after it vested. This determines whether any capital gains are short-term or long-term, which impacts your tax rate.
10 Related FAQ Questions
How to check my vested shares on E*TRADE?
You can typically check your vested shares by logging into your E*TRADE account and navigating to your "Portfolio" or "Stock Plan" section. Your holdings will be listed, often with details on vesting schedules if they are part of an employee stock plan.
How to find my cost basis for vested stock on E*TRADE?
E*TRADE usually provides your cost basis on your account statements or in the "Tax Center" section, particularly on Form 1099-B and any supplemental RSU/ESOP documentation. For vested shares, the cost basis is typically the fair market value of the shares on the vesting date.
How to choose between a market order and a limit order for selling stock?
Choose a market order if you want an immediate sale and are comfortable with the prevailing market price. Choose a limit order if you have a specific price target and are willing to wait for the stock to reach that price, even if it means the sale might not execute.
How to cancel a pending stock sell order on E*TRADE?
You can cancel a pending (unfilled) sell order by going to your "Orders" or "Order Status" section within your E*TRADE account. Locate the open order and select the option to "Cancel." Note that market orders fill almost instantly and cannot be canceled once executed.
How to link a bank account to my E*TRADE account for withdrawals?
To link a bank account, log in to ETRADE, go to the "Transfers" or "Move Money" section, and look for an option to "Add a Bank Account." You'll need your bank's routing number and your account number. ETRADE will send small test deposits to verify the account, which you'll need to confirm.
How to check the settlement status of my stock sale on E*TRADE?
After selling, the funds will typically settle in your E*TRADE cash balance on the next business day (T+1). You can check your "Cash Balance" or "Balances" section within your account to see if the funds are available for withdrawal.
How to avoid common mistakes when selling vested stock?
To avoid mistakes, always double-check that you've selected "Sell" (not "Buy"), verify the quantity of shares, confirm the order type, and carefully review the entire order summary before submission. Also, understand the tax implications beforehand.
How to find my tax documents for vested stock sales on E*TRADE?
Your tax documents, including Form 1099-B, will be available in the "Tax Center" or "Documents" section of your E*TRADE account, typically in January or February of the year following the sale. Look for supplemental documents related to RSU/ESOP sales as well.
How to sell vested stock if my company uses E*TRADE for employee stock plans?
The process is generally the same. Your vested shares will typically appear in a dedicated "Stock Plan" account or directly in your main brokerage account within E*TRADE. Navigate to these holdings and follow the standard sell order steps.
How to get help from E*TRADE customer service if I have issues selling stock?
You can contact E*TRADE customer service via phone (look for their contact number on the website or app), secure message within your account, or online chat. They have dedicated support for trading and stock plan accounts.
