Are you ready to take control of your investments and potentially lock in some profits? Selling on ETRADE can be a straightforward process, but understanding the steps and nuances involved is crucial for a smooth and successful transaction. Whether you're a seasoned investor or just starting out, this comprehensive guide will walk you through everything you need to know about selling on your ETRADE account.
Let's dive in and empower you to manage your portfolio with confidence!
Step 1: Log In and Assess Your Portfolio
The very first step, as with most online financial platforms, is to securely log in to your E*TRADE account.
1.1 Accessing Your Account
Go to the official ETRADE website (etrade.com) or open the ETRADE mobile app on your device.
Enter your User ID and Password. If you've forgotten them, utilize the "Forgot User ID" or "Forgot Password" links. It's always a good idea to have two-factor authentication (2FA) enabled for added security.
1.2 Reviewing Your Holdings
Once logged in, navigate to your portfolio or holdings section. This is where you'll see a complete overview of all your investments.
Identify the Security to Sell: Pinpoint the specific stock, ETF, mutual fund, or other security you intend to sell.
Check Current Market Value: Observe the current price of the security. This will help you decide on the best selling strategy. You'll often see the current bid and ask prices. The bid is the highest price a buyer is willing to pay, and the ask is the lowest price a seller is willing to accept.
Step 2: Initiate the Sell Order
With your target security in mind, it's time to begin the selling process.
2.1 Navigating to the Trade Section
Look for a "Trade," "Trading," or "Place Order" button or menu option. This is typically prominent on the platform.
Within the trading interface, you'll usually find options for "Buy" and "Sell." Select "Sell."
2.2 Selecting the Account and Security
Choose the Account: If you have multiple E*TRADE accounts (e.g., individual brokerage, IRA, joint account), ensure you select the correct account from which you want to sell the security.
Specify the Security: Enter the ticker symbol of the security you wish to sell. As you type, E*TRADE's system will usually auto-populate suggestions. Double-check that the correct security is selected.
Step 3: Choose Your Order Type
This is a critical step as the order type determines how your trade will be executed. E*TRADE offers various order types to suit different selling strategies.
3.1 Understanding Common Order Types
Market Order: This is the simplest and most common order type. A market order instructs E*TRADE to sell your shares immediately at the best available current market price.
Pros: Guarantees execution.
Cons: Does not guarantee the execution price. In fast-moving markets, the price you get might be slightly different from the last-traded price you saw.
Limit Order: A limit order allows you to set a specific price at which you are willing to sell your shares or better. Your order will only execute if the market price reaches your specified limit price or higher.
Pros: Provides control over the selling price.
Cons: No guarantee of execution. If the market price never reaches your limit price, your order won't be filled.
Stop Order (Stop-Loss Order): A stop order becomes a market order once the stock's price reaches a specified "stop price." It's often used to limit potential losses on an existing position. For a sell stop order, you set a stop price below the current market price. If the stock drops to that price, your stop order converts into a market order and is executed at the best available price.
Pros: Helps protect against significant losses.
Cons: Becomes a market order, so the execution price isn't guaranteed and could be below your stop price in volatile markets.
Stop-Limit Order: This combines features of a stop order and a limit order. When the stock reaches your "stop price," it triggers a limit order at your specified "limit price."
Pros: Offers more control than a stop order by setting a minimum selling price.
Cons: No guarantee of execution, as the limit order might not be filled if the price falls too quickly below your limit price.
3.2 Selecting the Right Order for You
Consider your goals: Do you need to sell immediately (Market Order)? Do you want a specific price (Limit Order)? Are you trying to protect against a downturn (Stop-Loss)?
For beginners, a Market Order or a Limit Order are generally the most straightforward to start with.
Step 4: Enter Quantity and Time-in-Force
Once you've selected your order type, you'll need to specify how many shares you want to sell and how long your order should remain active.
4.1 Specifying the Number of Shares
Enter the exact number of shares you wish to sell. Be careful not to sell more shares than you own (unless you're engaging in short selling, which is an advanced strategy and has different implications).
You might have the option to sell "all shares" of that particular security in your account.
4.2 Setting the Time-in-Force
This determines how long your order will remain active if it's not immediately filled (most relevant for Limit or Stop orders).
Day Order: Your order is active only for the current trading day. If it's not filled by the market close, it will expire.
Good 'Til Canceled (GTC): Your order remains active for a longer period (often up to 60 or 180 days, depending on E*TRADE's policy) or until it is filled or you manually cancel it.
Extended Hours: Allows your order to be active during pre-market and after-hours trading sessions. Be aware that liquidity can be lower and volatility higher during these times.
Step 5: Review and Confirm Your Order
This is a crucial step to prevent errors.
5.1 Double-Checking Details
Carefully review all the details of your sell order:
Account: Is it the correct account?
Action: Is it "Sell"?
Symbol: Is it the correct ticker symbol?
Quantity: Is the number of shares accurate?
Order Type: Is it the intended order type (Market, Limit, Stop, Stop-Limit)?
Price (if applicable): If it's a Limit or Stop order, is the price correct?
Time-in-Force: Is the duration correct?
Estimated Commission/Fees: E*TRADE generally offers $0 commission for online US-listed stocks and ETFs, but there might be regulatory or other fees. Always check for any applicable charges.
5.2 Final Confirmation
If everything looks correct, click the "Place Order" or "Confirm Trade" button.
You will usually receive a confirmation message on screen and/or via email, indicating that your order has been successfully placed.
Step 6: Monitor Your Order and Settlement
Placing the order isn't the absolute final step; monitoring and understanding settlement are also important.
6.1 Tracking Order Status
After placing your order, navigate to your "Order Status" or "Trade History" section on E*TRADE.
You can see if your order is pending, partially filled, or filled.
If your order is a Limit or Stop order and hasn't been filled, you can usually modify or cancel it if market conditions change or your strategy evolves.
6.2 Understanding Settlement
Once your sell order is filled, the transaction isn't immediately finalized. There's a settlement period. As of May 28, 2024, the standard settlement period for most US-listed stocks and ETFs is T+1, meaning the transaction settles one business day after the trade date.
During this settlement period, the ownership of the securities and the transfer of funds are formally processed. While the funds may appear in your E*TRADE account as "cash available for trading" immediately after the sale, they are not truly "settled" and available for withdrawal until T+1.
Step 7: Accessing Your Funds (Post-Settlement)
After your trade has settled, you can then access the proceeds.
7.1 Withdrawal Options
Navigate to the "Transfer & Pay" or "Move Money" section within your E*TRADE account.
You'll typically have several options to withdraw funds:
Electronic Funds Transfer (EFT/ACH): Transfer funds directly to your linked bank account. This is usually the most common and convenient method.
Wire Transfer: For faster transfers, often with a fee.
Check Request: Have a physical check mailed to you.
7.2 Important Considerations
Linked Bank Account: Ensure your bank account is properly linked and verified with E*TRADE before initiating a transfer.
Processing Times: EFTs typically take 1-3 business days to reach your bank account after initiation. Wire transfers are usually faster (often same-day if initiated within cutoff times).
Tax Implications: Remember that selling investments can have tax consequences (capital gains or losses). Keep good records of your trades for tax reporting purposes. E*TRADE will provide tax documents (like Form 1099-B) at the end of the year. It's always advisable to consult with a tax professional.
10 Related FAQ Questions (How to...)
Here are some common questions you might have about selling on E*TRADE:
1. How to sell a specific portion of my shares on E*TRADE?
You can sell a specific portion by simply entering the desired number of shares in the "Quantity" field when placing your sell order, rather than selecting "sell all."
2. How to cancel a pending sell order on E*TRADE?
Navigate to your "Order Status" or "Trade History" section. Find the pending order you wish to cancel and look for a "Cancel" button or option next to it. Confirm the cancellation.
3. How to modify a pending sell order on E*TRADE?
Similar to canceling, go to your "Order Status." Some platforms allow you to modify certain parameters (like price for a limit order) directly. If not, you may need to cancel the existing order and place a new one.
4. How to understand the fees for selling on E*TRADE?
ETRADE generally charges $0 commission for online US-listed stock, ETF, mutual fund, and options trades. However, regulatory and exchange fees may still apply. Over-the-counter (OTC) securities and foreign stocks may incur commissions. Check ETRADE's pricing page for a complete breakdown.
5. How to sell stocks received through an employee stock plan on E*TRADE?
If your employee stock plan is administered by ETRADE, you'll typically find these shares within your ETRADE account. The selling process is generally the same as described above, but there might be specific company policies or vesting schedules to be aware of. Consult your plan documents or company administrator.
6. How to view my trade confirmations after selling on E*TRADE?
Trade confirmations are usually available in your account's "Documents," "Statements," or "Trade Confirmations" section. You can typically view, download, or print them for your records.
7. How to handle capital gains or losses after selling on E*TRADE?
When you sell an investment for a profit, it's a capital gain. If you sell at a loss, it's a capital loss. These need to be reported on your taxes. E*TRADE will provide you with a Form 1099-B at the end of the year, detailing your sales proceeds. It's highly recommended to consult a tax advisor for personalized guidance.
8. How to transfer funds from my E*TRADE account to my bank account after selling?
Once your trade has settled (T+1), go to the "Transfer & Pay" section, select "Transfer Funds," and then "Withdraw Money." Choose your linked bank account, enter the amount, and confirm the transfer.
9. How to sell investments using the E*TRADE mobile app?
The process on the E*TRADE mobile app mirrors the web platform closely. Log in, navigate to your portfolio, select the security, choose "Sell," enter your order details, and confirm. The layout might differ slightly but the steps are essentially the same.
10. How to get help if I encounter issues selling on E*TRADE?
E*TRADE offers customer support via phone, chat, and email. You can find their contact information on their "Contact Us" page. Their phone support is typically available at 800-387-2331.