How To Sell Shares In Etrade Account

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It's an excellent decision to take control of your investments and understand how to manage your portfolio, including selling shares when the time is right. ETRADE, a popular online brokerage, offers a straightforward platform for executing trades. Let's dive into a comprehensive, step-by-step guide on how to sell shares in your ETRADE account.

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Before we begin, take a moment to consider why you're selling. Is it to realize profits, cut losses, rebalance your portfolio, or fund a new goal? Having a clear objective will help you navigate the process effectively.


Step 1: Log In to Your E*TRADE Account

This might seem obvious, but it's the crucial first step! You'll need secure access to your E*TRADE account to initiate any trades.

Sub-heading: Accessing the Platform

  • Visit the E*TRADE Website or Open the Mobile App:

    • For desktop users, go to us.etrade.com.

    • For mobile users, open the "E*TRADE: Invest. Trade. Save." app, available on both iOS (App Store) and Android (Google Play Store).

  • Enter Your Login Credentials: Input your User ID and Password. Always ensure you're on the official E*TRADE website or app to protect your account security. Be wary of phishing attempts!

  • Two-Factor Authentication (2FA): If you have 2FA enabled (which is highly recommended for your security), you'll likely need to enter a code sent to your phone or generated by an authenticator app. Don't skip this important security measure!


Step 2: Navigate to the Trading Section

Once you're logged in, you'll see your dashboard. This is where you can view your portfolio, account balances, and market news. To sell shares, you need to find the trading interface.

Sub-heading: Locating the "Trade" Option

  • On the Website: Look for a prominent tab or menu option labeled "Trade" or "Trading" at the top or side of the navigation bar. Sometimes it's under a "Tools" or "Accounts" menu.

  • On the Mobile App: Typically, there's a dedicated "Trade" icon or tab at the bottom of the screen, or it might be accessible through a main menu (often represented by three horizontal lines or dots).

Click or tap on this option to proceed.


Step 3: Select the "Sell" Action

Within the trading section, you'll usually have options for "Buy," "Sell," "Options," "Mutual Funds," etc. You're looking for the "Sell" button.

Sub-heading: Specifying Your Intention

  • Choose "Sell": Click on the "Sell" button. This will open an order ticket or a similar interface where you'll input the details of your sale.

  • Verify Account: If you have multiple E*TRADE accounts (e.g., a regular brokerage account and a retirement account), ensure you select the correct account from which you intend to sell the shares.


Step 4: Identify the Stock You Wish to Sell

Now, you need to tell E*TRADE which stock you want to sell.

Sub-heading: Entering the Stock Symbol

  • Enter the Stock Symbol (Ticker): In the designated field, type the stock symbol (e.g., "AAPL" for Apple, "MSFT" for Microsoft). If you don't know the symbol, you can usually search by company name, and the platform will provide the corresponding ticker.

  • Confirm the Company Name: After entering the symbol, the platform will typically display the full company name. Double-check that this matches the stock you intend to sell to avoid costly errors.


Step 5: Choose Your Order Type

This is a critical step as it determines how your sell order will be executed. E*TRADE offers various order types to give you control over the sale price and execution.

Sub-heading: Understanding Common Order Types

  • Market Order:

    • Description: A market order instructs E*TRADE to sell your shares immediately at the best available current market price.

    • Pros: Guarantees execution. Your order will almost certainly go through.

    • Cons: Does not guarantee a specific price. In volatile markets, the execution price might be slightly different than the last traded price you saw. Use with caution for illiquid stocks or during fast market movements.

    • When to Use: When you prioritize immediate execution over a precise price, and the stock is highly liquid.

  • Limit Order:

    • Description: A limit order allows you to specify a minimum price at which you are willing to sell your shares. Your order will only execute at your specified limit price or higher.

    • Pros: Provides price control. You won't sell below your desired price.

    • Cons: No guarantee of execution. If the market price doesn't reach your limit, your order might not be filled.

    • When to Use: When you want to ensure you get a specific price (or better) for your shares. Ideal for less liquid stocks or when you're patient.

  • Stop Order (Stop-Loss Order):

    • Description: A stop order (often called a stop-loss) becomes a market order once the stock price reaches or falls below your specified "stop price."

    • Pros: Helps limit potential losses on a position.

    • Cons: Once triggered, it becomes a market order and may execute at a price below your stop price in fast-moving markets (this is known as "slippage").

    • When to Use: Primarily for risk management, to automatically sell a stock if it drops to a certain level.

  • Stop Limit Order:

    • Description: A stop-limit order combines features of both stop and limit orders. When your specified "stop price" is reached, it triggers a limit order at your "limit price."

    • Pros: Offers both price protection (like a stop) and price control (like a limit).

    • Cons: Even with a limit, there's no guarantee of execution if the market moves past your limit price quickly.

    • When to Use: When you want to limit losses but also want to ensure you don't sell below a certain price.

Carefully consider the implications of each order type before making your selection.


Step 6: Enter the Quantity of Shares to Sell

Specify how many shares of the selected stock you want to sell.

Sub-heading: Determining Your Sale Amount

  • Enter Number of Shares: Type in the exact number of shares you wish to sell. You can choose to sell all your shares or just a portion.

  • Available Shares: The platform will usually display the number of shares you currently hold in your account for that particular stock. Ensure you don't enter a quantity greater than what you own.

  • Fractional Shares: E*TRADE generally allows selling of fractional shares, especially those acquired through dividend reinvestment plans (DRIPs) or specific investment programs.


Step 7: Review Your Order Details

Do not skip this step! Before confirming, it's crucial to review all the details of your order.

Sub-heading: The Final Checklist

  • Stock Symbol and Company Name: Is it the correct stock?

  • Action: Is it "Sell"?

  • Quantity: Is the number of shares accurate?

  • Order Type: Have you selected the intended order type (Market, Limit, Stop, etc.)?

  • Price (for Limit/Stop Orders): Is the limit or stop price set correctly?

  • Estimated Proceeds: E*TRADE will usually provide an estimated amount you will receive from the sale (before commissions and fees, if any, and taxes).

  • Commissions/Fees: Check for any applicable fees. E*TRADE typically offers $0 commission for online US-listed stock trades, but other fees (like regulatory or exchange fees, or broker-assisted trade fees) might apply.

  • Impact on Portfolio: Understand how this sale will affect your overall portfolio allocation.

Take a deep breath and double-check everything. Errors here can be costly.


Step 8: Confirm and Place Your Order

Once you're satisfied with all the details, it's time to place your order.

Sub-heading: Executing the Trade

  • Click "Place Order" or "Confirm Trade": This button will finalize your request.

  • Order Confirmation: You'll typically receive an order confirmation message indicating that your order has been placed.

  • Order Status: You can usually check the "Order Status" or "Order History" section of your E*TRADE account to see if your order is pending, partially filled, or completely filled.


Step 9: Monitor Your Order and Settlement

After placing your order, it's important to monitor its status, especially if you used a limit or stop order.

Sub-heading: Tracking and Fund Availability

  • Execution: For market orders, execution is usually instantaneous during market hours. For limit or stop orders, it depends on market conditions.

  • Settlement Period: Stock trades in the US typically settle in T+1 business days. This means the funds from your sale will be officially available in your account one business day after the trade date. For example, if you sell on a Monday, the funds will settle on Tuesday.

  • Funds Availability: While the funds may appear in your account sooner, they won't be fully "settled" and available for withdrawal or for certain other investments until the T+1 period is complete. E*TRADE will usually clearly indicate when funds are settled and available.


Important Considerations When Selling Shares

  • Market Hours: Generally, the US stock market operates from 9:30 AM to 4:00 PM Eastern Time (ET), Monday through Friday. E*TRADE also offers extended-hours trading (pre-market and after-market), but these sessions can have lower liquidity and wider bid-ask spreads, which can impact execution prices.

  • Tax Implications: Selling shares can trigger capital gains or losses, which have tax implications.

    • Short-Term Capital Gains: If you held the shares for one year or less, profits are taxed at your ordinary income tax rate.

    • Long-Term Capital Gains: If you held the shares for more than one year, profits are taxed at a lower, preferential long-term capital gains rate.

    • Consult a Tax Advisor: It's highly recommended to consult with a qualified tax professional to understand the specific tax implications for your situation, especially if you have significant gains or losses. E*TRADE does not provide tax advice.

  • Wash-Sale Rule: Be aware of the IRS wash-sale rule, which prevents you from claiming a capital loss on a security if you buy the same or a substantially identical security within 30 days before or after the sale.

  • Dividends: If you sell shares shortly before a dividend's ex-dividend date, you might miss out on receiving the dividend.

  • Fees: While E*TRADE generally offers $0 commissions for online US-listed stocks, other minor regulatory or exchange fees may still apply. Broker-assisted trades typically incur a higher fee. Always check the fee schedule.


10 Related FAQ Questions

Here are some frequently asked questions about selling shares on E*TRADE:

How to check my available shares before selling?

You can typically view your holdings by navigating to your "Portfolio" or "Accounts" section on the E*TRADE platform. The quantity of each stock you own will be listed there.

How to cancel a pending sell order on E*TRADE?

Go to your "Order Status" or "Order History" section. If the order has not yet been executed, you should see an option to "Cancel" the order. Be quick, as market orders execute very fast.

How to determine the best time to sell shares?

The "best" time is highly subjective and depends on your individual financial goals, market outlook, and risk tolerance. Consider factors like profit targets, stop-loss levels, company news, market trends, and your overall portfolio strategy.

How to sell only a portion of my shares?

When entering the quantity in Step 6, simply type in the specific number of shares you want to sell, rather than the total amount you hold.

How to withdraw funds after selling shares on E*TRADE?

Once the funds from your sale have settled (T+1 business days), you can initiate a withdrawal via electronic funds transfer (EFT), wire transfer, or by requesting a check. Navigate to the "Transfers" or "Withdrawals" section of your account.

How to view my transaction history for sold shares?

Your transaction history, including all your buy and sell orders, can be found under the "Activity" or "Statements & Documents" section of your E*TRADE account.

How to get tax documents for my stock sales from E*TRADE?

E*TRADE will provide you with tax documents, such as Form 1099-B (Proceeds From Broker and Barter Exchange Transactions), which reports your sales activity. These are usually available in the "Statements & Documents" section early in the tax year.

How to sell shares that are part of an Employee Stock Purchase Plan (ESPP) or Restricted Stock Units (RSU) through E*TRADE?

If your ESPP or RSU are managed through E*TRADE's corporate services, the process is generally similar. You'll log into your stock plan account, navigate to the relevant holdings, and initiate a sell order. Specific rules and blackout periods might apply, so always check your company's plan documents.

How to contact E*TRADE customer service for help with selling shares?

You can contact E*TRADE customer service by phone (800-387-2331) or through their secure messaging system within your online account. They also offer chat support on their website and mobile app.

How to understand the fees associated with selling shares on E*TRADE?

For US-listed stocks and ETFs, ETRADE generally charges $0 commission for online trades. However, be aware of potential regulatory transaction fees, exchange fees, or higher fees if you place a trade through a broker over the phone. Always refer to ETRADE's official pricing page for the most up-to-date fee schedule.

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