E*TRADE's fee structure depends on what you do with your account

E*TRADE does not charge a monthly account fee or inactivity fee just for holding an account. However, the company charges fees for specific actions: trading stocks and ETFs costs nothing, but options trades, mutual funds, wire transfers, and certain other services do carry charges. The amount you pay depends on which service you use and how often.

Understanding where E*TRADE makes money from your account helps you decide whether the platform fits your investing style. If you trade only stocks and ETFs, your costs are zero per trade. If you trade options or move money frequently, fees add up quickly.

Key Takeaways

  • Stock and ETF trades on E*TRADE are commission-free, with no per-trade cost or monthly account fee.
  • Options trades cost $0.65 per contract, which means a single options order can cost several dollars depending on how many contracts you trade.
  • Mutual funds carry a transaction fee unless you buy from E*TRADE's no-transaction-fee list, and some mutual funds charge their own internal expense ratios on top of that.
  • Wire transfers out of your account cost $25 for domestic wires and $35 for international wires, though incoming wires are free.
  • Margin accounts charge interest on borrowed money, and the rate varies based on how much you borrow and current market conditions.

Stock and ETF trades cost nothing

E*TRADE charges zero commission on stock trades and ETF trades, whether you buy or sell. This applies to all account types — individual, joint, IRA, and others. You can trade as many times as you want without paying per-trade fees.

The only cost you might encounter is the bid-ask spread, which is the difference between what buyers will pay and what sellers are asking. That spread is not an E*TRADE fee; it is how the market works. A stock trading at $50 might have a bid of $49.99 and an ask of $50.01, and you pay that difference when you buy or sell.

Options trades cost $0.65 per contract

Each options contract you trade costs $0.65. If you place an order to buy 10 call contracts, you pay $6.50 in fees ($0.65 × 10). If you sell 5 put contracts, you pay $3.25. The fee applies whether you are opening or closing the position.

This fee structure means options trading can become expensive if you trade frequently or in large quantities. A trader who buys and sells 50 contracts per month pays $32.50 in options fees alone. Compare this to your expected profit or loss on those trades to decide whether options fit your strategy.

Mutual funds have transaction fees unless they are on the no-transaction-fee list

E*TRADE charges a transaction fee for most mutual funds, typically $49.95 per purchase. However, the company maintains a no-transaction-fee (NTF) mutual fund list of thousands of funds where you pay zero transaction fee to buy. You can search the NTF list on E*TRADE's website before you buy.

Even if you buy a mutual fund with no transaction fee, you still pay the fund's internal expense ratio (ER). The expense ratio is an annual percentage charge that covers the fund manager's costs and is deducted from the fund's returns automatically. A fund with a 0.5% expense ratio costs you $50 per year on a $10,000 investment, whether you bought it through E*TRADE or another broker.

Wire transfers and account maintenance fees

Sending money out of your E*TRADE account via domestic wire transfer costs $25. International wire transfers cost $35. Incoming wires are free. If you move money frequently, these fees add up — someone who makes four outgoing domestic wires per year pays $100 in wire fees alone.

E*TRADE does not charge a fee to close an account, and there is no penalty for low balances. Some brokerage accounts charge inactivity fees if you do not trade for a certain period, but E*TRADE does not.

Margin account interest charges

If you open a margin account and borrow money from E*TRADE to buy securities, you pay interest on the borrowed amount. E*TRADE's margin interest rate varies based on the amount you borrow and current market conditions. The company publishes its margin rates on its website, and rates typically range from around 8% to 12% annually, though this varies.

Margin interest is calculated daily and charged monthly to your account. If you borrow $10,000 at 10% annual interest, you pay roughly $83 per month in interest charges. Margin accounts also carry the risk that E*TRADE can force you to sell securities if your account value drops below the maintenance requirement.

Fees for special services and account types

E*TRADE charges $50 to issue a paper stock certificate, though most investors never need this. Transferring an account to another broker (called an ACAT transfer) is free. Closing a position in a mutual fund you bought with a transaction fee does not charge another fee — you only pay the transaction fee when you buy.

Retirement accounts like IRAs have the same trading fees as regular accounts. There is no annual IRA maintenance fee. However, if you want to set up a trust account or other special account structure, contact E*TRADE directly for information about any associated costs.

How E*TRADE's fees compare to other brokers

Most major brokers — Fidelity, Charles Schwab, TD Ameritrade — also offer commission-free stock and ETF trading. The main differences are in options fees, mutual fund fees, and wire transfer costs. Some brokers charge $0.50 per options contract instead of $0.65. Some brokers waive wire transfer fees for accounts above a certain balance. Comparing fee schedules across brokers helps you find the best fit for your trading style.

If you trade only stocks and ETFs and rarely move money out of your account, E*TRADE's fee structure is competitive with other major brokers. If you trade options frequently or move money often, the fees may matter more in your decision.

Frequently Asked Questions

Does E*TRADE charge a monthly fee just for having an account?

No. E*TRADE does not charge a monthly account fee, inactivity fee, or minimum balance fee. You can hold an account with zero balance and pay nothing. You only pay fees when you perform specific actions like trading options, buying certain mutual funds, or sending wire transfers.

Are there any hidden fees I should know about?

E*TRADE publishes all its fees on its website and in account agreements. The most commonly overlooked fees are mutual fund transaction fees (unless you buy from the NTF list) and margin interest charges if you borrow money. Wire transfer fees and options fees are clearly disclosed but straightforward to forget if you do not trade those products regularly.

Can I avoid fees by using E*TRADE's mobile app instead of the website?

No. Fees are the same whether you trade on the website, mobile app, or phone. The platform you use does not change what E*TRADE charges for stocks, options, mutual funds, or wire transfers.

What happens if I transfer my account from another broker to E*TRADE?

E*TRADE does not charge a fee to receive a transfer from another broker. The transfer itself is free. However, your old broker may charge an outgoing transfer fee — typically $50 to $100 — so check with them before you move your account.

Do I pay fees on dividends or interest earned in my account?

No. E*TRADE does not charge a fee when you receive dividends from stocks or interest from cash holdings. You may owe income tax on those earnings, but E*TRADE itself does not take a cut.