Investing can seem like a daunting task, but with the right guidance and a user-friendly platform, it becomes accessible to everyone. E*TRADE, a well-known online brokerage, offers a robust platform for investors of all experience levels. Whether you're looking to buy your first stock or diversify your portfolio with options, understanding how to navigate the order placement process is crucial.
So, are you ready to take control of your investments and dive into the world of trading on E*TRADE? Let's get started!
Step 1: Log In and Navigate to the Trading Platform
The first and most fundamental step is to access your E*TRADE account.
1.1 Accessing the E*TRADE Website or Mobile App:
Open your web browser and go to the official ETRADE website (us.etrade.com) or launch the ETRADE mobile app on your smartphone or tablet.
Always ensure you are on the legitimate ETRADE site to avoid phishing scams.*
1.2 Logging In to Your Account:
Locate the "Log On" or "Sign In" button, usually found in the top right corner of the website or prominently displayed on the app.
Enter your User ID and Password in the designated fields.
If you've enabled two-factor authentication (which is highly recommended for security!), you'll likely need to enter a code sent to your registered device.
Once logged in, you'll be directed to your account dashboard, which provides an overview of your portfolio.
Step 2: Choose Your Investment and Research Thoroughly
Before you can place an order, you need to decide what you want to buy or sell. This step is critically important and should never be rushed.
2.1 Selecting a Security:
From your dashboard, look for a "Trade," "Invest," or similar tab. On the E*TRADE website, you'll often find a "Trade" menu at the top.
You'll likely see a search bar or a "Quote & Trade" section. Here, you'll enter the ticker symbol of the stock, ETF, mutual fund, or other security you wish to trade. For example, if you want to buy Apple stock, you'd type "AAPL."
If you don't know the ticker symbol, you can usually search by company name.
2.2 Conducting Due Diligence:
Once you've entered the ticker, E*TRADE will display a quote page for that security. This page is a treasure trove of information.
Take your time to review:
Current Price Information: Bid, Ask, Last Price, High/Low for the day.
Fundamentals: Company news, financial statements, analyst ratings, and earnings reports.
Charts: Analyze historical price movements to identify trends.
News: Stay updated on any recent news that might impact the security's price.
E*TRADE provides a rich collection of tools and information to help you research and analyze potential opportunities. For options trading, they even offer tools like "Snapshot Analysis" and "Paper Trading" to test your strategy without real money.
Step 3: Initiate the Order and Select Order Type
Now that you've chosen your security, it's time to start building your order.
3.1 Clicking "Trade" or "Buy/Sell":
On the security's quote page, you'll find prominent "Buy" and "Sell" buttons. Click the one that corresponds to your intention.
This will take you to the order entry ticket.
3.2 Choosing Your Order Type:
This is where things get a bit more technical, but understanding order types is essential for smart trading. E*TRADE offers various order types to suit different trading strategies. The most common ones include:
Market Order: An order to buy or sell a security immediately at the best available current market price. This guarantees execution but does not guarantee a specific price. Use this when speed of execution is your priority.
Limit Order: An order to buy or sell a security at a specific price or better.
Buy Limit: Only executes at your specified price or lower.
Sell Limit: Only executes at your specified price or higher.
This gives you more control over the price you pay or receive, but there's no guarantee your order will be filled.
Stop Order (Stop-Loss Order): An order to buy or sell a stock once its price reaches a specified "stop price." When the stop price is reached, it becomes a market order.
Buy Stop: Entered above the current market price, typically to limit losses on a short position.
Sell Stop: Entered below the current market price, commonly used to protect profits or limit losses on a long position.
Be aware that stop orders convert to market orders, meaning they could execute at a price significantly different from your stop price in volatile markets.
Stop-Limit Order: 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. This offers more price control than a regular stop order but may not guarantee execution.
Trailing Stop Order: A stop order that adjusts its stop price as the stock's price moves in your favor. This helps protect profits while allowing for potential further gains.
Carefully consider your goals and market conditions when selecting an order type.
Step 4: Specify Order Details
Once you've chosen your order type, you'll need to fill in the specifics.
4.1 Quantity:
Enter the number of shares or contracts you wish to buy or sell.
4.2 Price (for Limit/Stop/Stop-Limit Orders):
If you selected a limit, stop, or stop-limit order, enter your desired price.
4.3 Time in Force:
This determines how long your order remains active in the market. Common options include:
Day: The order is active only for the current trading day and expires at the market close if not filled.
Good 'Til Canceled (GTC): The order remains active until it's filled or you manually cancel it (typically up to 60 days on E*TRADE, though this can vary).
Other less common options like "Fill or Kill" (FOK) or "Immediate or Cancel" (IOC) may be available for advanced traders.
4.4 Account Selection (if applicable):
If you have multiple E*TRADE accounts (e.g., a brokerage account and an IRA), ensure you've selected the correct account for the trade.
Step 5: Review and Confirm Your Order
This is your final chance to catch any errors before sending your order to the market.
5.1 Review Order Summary:
E*TRADE will display a summary of your order, including the security, action (buy/sell), quantity, order type, price (if applicable), time in force, and estimated commission/fees.
Double-check everything carefully. A misplaced decimal point or incorrect quantity can have significant financial consequences.
5.2 Estimated Cost/Proceeds:
Pay attention to the estimated total cost for a buy order or estimated proceeds for a sell order. This helps ensure you have sufficient funds or are aware of your potential gains.
5.3 Understanding Fees:
E*TRADE generally offers $0 commissions for online US-listed stock, ETF, and mutual fund trades.
Options contracts typically cost $0.65 per contract ($0.50 if you make 30+ trades per quarter).
Over-the-Counter (OTC) stocks may incur a commission of $6.95 ($4.95 for 30+ trades per quarter).
Broker-assisted trades usually incur a $25 fee.
Always review the specific fees associated with your trade type.
5.4 Confirming the Order:
If everything looks correct, click the "Place Order" or "Confirm" button.
Step 6: Monitor Your Order and Portfolio
Once your order is placed, the process isn't entirely over.
6.1 Order Status:
After placing the order, you'll typically see an order confirmation page.
You can also check the status of your order in the "Order Status" or "Pending Orders" section of your E*TRADE account.
The status will change from "Pending" to "Filled" (fully or partially) or "Canceled" if it wasn't executed.
6.2 Trade Confirmation:
E*TRADE will send you a trade confirmation, usually via email, once your order is executed. This document provides official details of your transaction.
6.3 Portfolio Update:
Your portfolio will update to reflect your new holdings (for buy orders) or the removal of sold securities and updated cash balance (for sell orders).
6.4 Adjusting or Cancelling Orders:
If your order is still pending and hasn't been filled, you may have the option to modify or cancel it. This is useful if market conditions change or you change your mind. Simply navigate to your "Order Status" and look for the option to edit or cancel.
Trading Hours on E*TRADE:
It's important to be aware of trading hours, especially if you're using market orders.
Regular Trading Session: Monday to Friday, 9:30 a.m. to 4:00 p.m. ET.
Extended Hours Trading: E*TRADE offers pre-market, after-market, and overnight sessions, but additional risks apply due to reduced liquidity. Only limit orders are accepted during extended hours.
Pre-Market Session: 7:00 a.m. to 9:30 a.m. ET
After-Market Session: 4:00 p.m. to 8:00 p.m. ET
Extended Hours Overnight Session: 8:00 p.m. to 7:00 a.m. ET (Sunday through Thursday for certain ETFs).
Remember: Investing in the stock market involves risk. Always do your own research and consider consulting a financial advisor before making any investment decisions.
Frequently Asked Questions (FAQs)
How to open an E*TRADE account?
You can open an E*TRADE account online by visiting their website (us.etrade.com) and clicking on "Open an Account." You'll need to choose an account type (e.g., brokerage, IRA), provide personal information, and fund your account. There is generally no minimum deposit to open a standard brokerage account.
How to fund my E*TRADE account?
You can fund your E*TRADE account via several methods, including electronic funds transfer (ACH) from a linked bank account, wire transfer, check deposit (including mobile check deposit), or by transferring an existing account from another brokerage.
How to find a stock's ticker symbol on E*TRADE?
You can find a stock's ticker symbol by using the search bar on the E*TRADE website or mobile app. Simply type in the company name, and the platform will suggest the corresponding ticker symbol.
How to set up a watchlist on E*TRADE?
To set up a watchlist, navigate to your dashboard or the "Watchlists" section of the E*TRADE platform. You can then search for securities and add them to your custom watchlists to monitor their performance.
How to place an options trade on E*TRADE?
Placing an options trade on E*TRADE involves navigating to the "Options" section, selecting the underlying security, choosing your desired options contract (call or put, strike price, expiration), and then entering your order details like quantity, price, and order type. Ensure you have the appropriate options trading approval level.
How to use advanced order types on E*TRADE?
E*TRADE offers various advanced order types like stop-limit, trailing stop, and contingent orders. To use them, select the desired order type from the dropdown menu on the order entry ticket and fill in the required parameters, such as stop price and limit price.
How to check the status of a pending order on E*TRADE?
You can check the status of a pending order by navigating to the "Order Status" or "Pending Orders" section within your E*TRADE account. This will show whether your order is "Open," "Partially Filled," "Filled," or "Canceled."
How to cancel or modify an E*TRADE order?
If your order is still pending and not yet executed, you can usually cancel or modify it directly from the "Order Status" section of your E*TRADE account. Look for "Modify" or "Cancel" buttons next to your open orders.
How to view my transaction history on E*TRADE?
Your transaction history can typically be found under the "Accounts" or "Activity" section of your E*TRADE dashboard. You can usually filter by date range and transaction type to review past trades and other account activities.
How to contact E*TRADE customer support?
E*TRADE offers various ways to contact customer support, including phone, email, and live chat. You can find their contact information on their website, usually in the "Contact Us" or "Help" section.
