Have you decided it's time to cash in on some of your investments with ETRADE? Whether you're rebalancing your portfolio, taking profits, or simply need the funds, selling shares on ETRADE is a straightforward process. However, understanding the steps and various order types is crucial for a smooth and successful transaction. Let's dive in!
The Ultimate Guide to Selling Shares on E*TRADE
Selling shares might seem daunting at first, but E*TRADE's platform is designed to make it as user-friendly as possible. This comprehensive guide will walk you through each step, from logging in to confirming your sale, ensuring you feel confident and in control.
Step 1: Log In to Your E*TRADE Account
Ready to get started? The very first action you need to take is to securely access your E*TRADE account.
1.1 Access the E*TRADE Website or Mobile App: Open your web browser and navigate to the official ETRADE website (etrade.com) or launch the ETRADE mobile app on your smartphone or tablet. Always ensure you are on the authentic E*TRADE platform to prevent phishing attempts.
1.2 Enter Your Credentials: Locate the "Log On" or "Sign In" button. You'll then be prompted to enter your User ID and Password. If you have two-factor authentication enabled, be prepared to enter the verification code sent to your registered device.
1.3 Account Overview: Once successfully logged in, you'll land on your account dashboard, which typically provides an overview of your portfolio, account balances, and recent activity.
Step 2: Navigate to the "Trade" or "Trading" Section
With your account open, it's time to find where the magic happens – the trading interface.
2.1 Locate the Trading Tab: Look for a prominent tab or menu option labeled "Trade" or "Trading." This is your gateway to initiating buy and sell orders. On the mobile app, this might be a dedicated icon at the bottom or top of the screen.
2.2 Select "Sell": Within the trading section, you'll typically find options for "Buy" and "Sell." Click on the "Sell" option to indicate your intention to divest a security.
Step 3: Choose the Stock You Want to Sell
Now comes the moment to pick which of your prized possessions will be leaving your portfolio.
3.1 Search for the Stock: You'll usually find a search bar or a dropdown menu to select the specific stock or ETF you wish to sell. You can typically type in the company name or its stock symbol (ticker).
3.2 Verify Your Holdings: The platform will likely display your current holdings of that particular stock, including the number of shares you own. Double-check that you've selected the correct security to avoid accidental sales.
3.3 Review Current Market Data: Before proceeding, take a moment to review the current market price, bid/ask spread, and any relevant news or charts for the stock. This information can help you make an informed decision about your selling strategy.
Step 4: Determine Your Order Type
This is a critical step where you define how you want your shares to be sold. Different order types offer varying levels of control over the execution price and speed.
4.1 Market Order:
What it is: A market order instructs E*TRADE to sell your shares immediately at the best available current market price.
When to use it: Choose a market order if your primary goal is immediate execution and you're less concerned about getting an exact price. This is often used for highly liquid stocks where price fluctuations are minimal.
Considerations: While it guarantees execution, it does not guarantee the specific price. In fast-moving or thinly traded markets, the executed price might be slightly different from the last quoted price.
4.2 Limit Order:
What it is: A limit order allows you to specify a minimum price at which you are willing to sell your shares. Your order will only be executed if the market price reaches or exceeds your specified limit price.
When to use it: Use a limit order when you want more control over the selling price and are willing to wait for the market to reach your desired level. This is ideal for locking in profits or preventing sales below a certain threshold.
Considerations: There's no guarantee your order will be filled if the market price never reaches your limit.
4.3 Stop Order (Stop-Loss Order):
What it is: A stop order, often called a stop-loss order, becomes a market order once the stock's price reaches a specified "stop price."
When to use it: This is primarily used to limit potential losses on an existing position. If the stock price drops to your stop price, your shares will be sold at the prevailing market price.
Considerations: Once triggered, it becomes a market order, meaning the execution price might be below your stop price in a rapidly falling market. This is known as "slippage."
4.4 Stop-Limit Order:
What it is: A stop-limit order combines features of both stop and limit orders. It becomes a limit order (not a market order) once the stop price is triggered. This means your shares will only be sold at or above your specified limit price, after the stop price is reached.
When to use it: Use this if you want to limit losses but also want to avoid selling below a certain price due to market volatility.
Considerations: Similar to a limit order, there's no guarantee of execution if the market moves past your limit price after the stop is triggered.
Step 5: Enter the Quantity and Price (If Applicable)
Once you've chosen your order type, you'll need to specify the details of your sale.
5.1 Quantity of Shares: Enter the exact number of shares you wish to sell. Be careful not to sell more shares than you own.
5.2 Limit or Stop Price (for Limit, Stop, and Stop-Limit Orders): If you've selected a limit, stop, or stop-limit order, you'll need to enter your desired price.
For a Limit Order, this is the minimum price you'll accept.
For a Stop Order, this is the trigger price that converts your order into a market order.
For a Stop-Limit Order, this is both the trigger price and the minimum acceptable selling price after the trigger.
5.3 Time-in-Force: You'll also need to select how long you want your order to remain active. Common options include:
Day Order: The order is active only for the current trading day and expires if not filled by market close.
Good-Til-Canceled (GTC): The order remains active for a longer period (often up to 60 or 90 days, depending on E*TRADE's policy) unless it's filled or you manually cancel it.
Step 6: Review and Submit Your Order
This is your final chance to verify all the details before placing the trade. Accuracy here is paramount!
6.1 Carefully Review All Details: Look over every piece of information on the order confirmation screen:
The stock symbol you're selling.
The number of shares.
The order type (Market, Limit, Stop, Stop-Limit).
The price (if applicable).
The time-in-force.
Any estimated commissions or fees.
6.2 Understand the Implications: Be sure you fully understand what will happen once you submit the order, especially with stop and stop-limit orders where execution isn't guaranteed at a specific price.
6.3 Click "Submit" or "Place Order": Once you are absolutely confident in your order, click the button to submit it.
Step 7: Monitor Your Order and Confirm Execution
After submitting, your work isn't quite done.
7.1 Check Order Status: Immediately after submission, you'll typically see a confirmation message. You can usually find the status of your order in a "Order Status" or "Trade History" section of your E*TRADE account.
7.2 Await Confirmation: For market orders, execution is usually swift. For limit or stop orders, it might take time for the market conditions to meet your criteria. Once filled, you'll receive a trade confirmation detailing the executed price and any associated fees.
7.3 Verify Funds: The proceeds from your sale will typically appear in your E*TRADE account as cash. Note that while the trade executes quickly, the settlement of funds (when the cash is fully available for withdrawal or other trades) usually takes a few business days (T+2 in many markets).
Frequently Asked Questions about Selling Shares on E*TRADE
Here are 10 common questions related to selling shares on E*TRADE, along with quick answers.
How to Check My Available Shares Before Selling?
You can typically view your current holdings and the number of shares available for sale on your E*TRADE portfolio page or within the trading platform when you select a specific stock.
How to Cancel a Sell Order on E*TRADE?
You can cancel an open (unfilled) order by navigating to your "Order Status" or "Trade History" section and finding the specific order. There should be an option to "Cancel" it. Note that market orders fill almost instantly and often cannot be canceled.
How to Determine the Best Time to Sell Shares?
Determining the best time to sell involves personal financial goals, market analysis, and your investment strategy. There's no single "best" time, but common reasons include reaching a profit target, rebalancing your portfolio, needing cash, or a significant change in the company's fundamentals.
How to Understand the Fees for Selling Shares on E*TRADE?
E*TRADE generally offers $0 commission for online U.S.-listed stock and ETF trades. However, there might be regulatory fees or specific fees for certain complex order types or large block trades. Always review the estimated fees before confirming your order.
How to Sell Fractional Shares on E*TRADE?
E*TRADE supports fractional share trading for certain securities. If you hold fractional shares, you can typically sell them just like whole shares, provided the platform supports it for that specific security.
How to Sell Shares Acquired from a Stock Plan (e.g., RSU, ESPP)?
Shares from RSU or ESPP plans held at E*TRADE can usually be sold through the same trading interface. Be aware of any vesting schedules, holding periods, or tax implications specific to your company's plan.
How to Handle Tax Implications of Selling Shares?
Selling shares can have tax implications, particularly for capital gains or losses. E*TRADE provides tax documents (like Form 1099-B) at year-end. It's highly recommended to consult a tax advisor for personalized advice on your specific tax situation.
How to Transfer Funds After Selling Shares?
Once your trade has settled (typically T+2 business days), the cash proceeds will be available in your E*TRADE account. You can then transfer these funds to an linked external bank account via electronic transfer (ACH), wire transfer, or request a check.
How to Set Up Alerts for Stock Prices on E*TRADE?
E*TRADE offers tools to set up alerts for specific stock price movements. You can typically find this feature within the stock's quote page or in the "Alerts" section of your account, allowing you to be notified when a stock reaches a certain price.
How to Get Help from E*TRADE Customer Service for Selling Shares?
If you encounter any issues or have questions, E*TRADE provides customer support via phone, live chat, or email. You can find their contact information on their official website's "Contact Us" or "Help" section.
