E*TRADE is a brokerage platform where you open an account, fund it, and then buy and sell stocks, ETFs, mutual funds, and other investments through their website or mobile app

E*TRADE is owned by Morgan Stanley and operates as a self-directed brokerage — meaning you make your own investment decisions rather than paying someone to manage your money for you. You'll need to open an account, pass their identity verification, link a bank account to fund it, and then you can place trades during market hours. The platform charges no commission on stock and ETF trades, though some mutual funds and options trades may have different pricing.

The basic flow is straightforward: you sign up online, verify who you are, connect your bank account, deposit money, and then use E*TRADE's website or app to search for investments and place orders. Your money sits in your E*TRADE account until you decide to buy something, and when you sell, the proceeds go back into that account as cash you can withdraw or reinvest.

Key Takeaways

  • You create an E*TRADE account online, provide your Social Security number and personal information, and verify your identity before you can trade.
  • After your account opens, you link a bank account and transfer money into E*TRADE — this cash sits in your account until you use it to buy investments.
  • Once funded, you search for stocks, ETFs, or mutual funds on E*TRADE's platform and place buy or sell orders during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday).
  • E*TRADE charges no commission on stock and ETF trades, but you pay the bid-ask spread (the difference between what buyers and sellers are willing to pay) when you trade.
  • Your investments stay in your E*TRADE account, and you can check your balance, see your holdings, and place new trades anytime through their website or app.

Opening Your E*TRADE Account Online

Start by going to E*TRADE's website and clicking the button to open a new account. You'll be asked to choose the type of account you want — most individual investors start with a standard brokerage account, though E*TRADE also offers IRAs, Roth IRAs, and other retirement accounts. The type you choose depends on whether you want to save for retirement with tax advantages or straightforward invest money you don't need for retirement.

E*TRADE will ask for your full name, date of birth, Social Security number, address, phone number, and employment information. They use this to verify your identity and comply with federal financial regulations. You'll also create a username and password to log in later. The entire process takes about 10 to 15 minutes online.

After you submit your information, E*TRADE verifies your identity — usually when ready, though sometimes they may ask you to confirm information or answer security questions. Once approved, your account is open and you'll receive a confirmation email with your account number and login details.

Funding Your Account and Understanding Cash Balance

After your account opens, you need to transfer money into it before you can buy anything. Log in to E*TRADE and look for the "Transfer Funds" or "Deposit" option, usually found in the account menu. E*TRADE will ask you to link a bank account by providing your routing number and account number — you can find these on the bottom left of any check, or by logging into your bank's website.

Once your bank account is linked, you can transfer money from your bank to E*TRADE. The transfer typically takes one to three business days. Until the money arrives, your E*TRADE cash balance shows zero. Once it lands, that amount appears as "cash" or "settled cash" in your account — this is the money you can spend on investments.

It's important to understand that E*TRADE separates your cash balance from your investment balance. If you have $5,000 in cash and buy $3,000 worth of stock, you'll have $2,000 cash remaining and $3,000 in stock holdings. Your total account value is the sum of both. When you sell an investment, the proceeds return to your cash balance.

Searching for and Buying Investments

Once your account is funded, you can search for investments to buy. On E*TRADE's website or app, look for a search bar or "Quote" section where you can type a stock ticker symbol (like AAPL for Apple or MSFT for Microsoft) or a company name. E*TRADE will show you the current price, recent price history, and basic information about the company.

When you find something you want to buy, click "Trade" or "Buy" and E*TRADE will open an order form. You'll specify how many shares you want to purchase — for example, if a stock costs $100 per share and you want to spend $1,000, you'd enter 10 shares. E*TRADE shows you the total cost before you confirm, so you can make sure you have enough cash in your account.

You'll also choose an order type. A market order buys when ready at whatever the current price is — useful if you want the trade to happen right away. A limit order lets you set a maximum price you're willing to pay, and the trade only happens if the stock drops to that price or lower. Most beginners use market orders. After you review everything, click "Submit" or "Place Order" and the trade executes — usually within seconds during market hours.

Placing a Sell Order and Withdrawing Money

To sell an investment, log into E*TRADE and find the position you want to sell in your holdings list. Click on it and select "Sell" or "Trade." E*TRADE will show you how many shares you own and the current market price. You'll enter how many shares to sell (you can sell all of them or just some) and choose your order type — again, market orders are simplest for most people.

After you confirm, the sale executes and the money goes into your cash balance. You can then use that cash to buy something else, or you can withdraw it back to your bank account. To withdraw, go to "Transfer Funds" and select "Withdraw" or "Transfer to Bank." E*TRADE will send the money back to the bank account you linked, usually within one to three business days.

Keep in mind that if you sell a stock you've held for less than a year, you may owe short-term capital gains tax on any profit — this is a tax issue, not an E*TRADE rule, but it's worth understanding before you trade frequently.

Using E*TRADE's Mobile App and Website Tools

E*TRADE offers both a website and a mobile app, and they work similarly. The website gives you more screen space and is useful for research and detailed analysis. The app is convenient for checking your balance, placing quick trades, and monitoring your holdings while you're away from a computer.

Both platforms show your account balance, a list of everything you own, and real-time stock prices. E*TRADE also includes research tools like stock screeners (which let you filter stocks by criteria like price or industry), news feeds, and educational articles. These tools are free to use as part of your account.

You can set up alerts so E*TRADE notifies you when a stock price hits a certain level, or when your account balance changes significantly. You can also view your transaction history, see how much you've gained or lost on each investment, and read statements for tax purposes.

Understanding Fees and Costs You'll Actually Pay

E*TRADE charges no commission on stock and ETF trades — meaning you don't pay a per-trade fee when you buy or sell. However, you do pay the bid-ask spread, which is the difference between what buyers are willing to pay and what sellers are asking. For example, if a stock's bid price is $99.95 and the ask price is $100.05, you'd pay $100.05 to buy it and receive $99.95 if you sold it when ready. This spread is built into the market, not charged by E*TRADE, but it's a real cost you should know about.

Mutual funds may have different pricing depending on the fund — some are free to trade, while others charge a transaction fee. Options trades (buying the right to buy or sell a stock at a future date) typically cost $0.65 per contract. Margin interest applies if you borrow money from E*TRADE to buy investments — this is an advanced feature most beginners don't use.

E*TRADE also charges inactivity fees on some account types if you don't trade for a long period, though this varies. Check your account agreement or contact E*TRADE directly to understand any fees that might explore to your specific account type.

Frequently Asked Questions

Can I trade before the market opens or after it closes?

E*TRADE offers extended-hours trading, which lets you trade before 9:30 a.m. and after 4 p.m. Eastern on weekdays. However, extended-hours trading has lower volume and wider bid-ask spreads, meaning it's harder to buy or sell at good prices. Most beginners stick to regular market hours (9:30 a.m. to 4 p.m.) when liquidity is highest.

What happens if I don't have enough cash to buy something?

E*TRADE will reject your order if you try to buy more than your cash balance allows. You'll need to either deposit more money from your bank account or sell something else first to free up cash. Some account types offer margin, which lets you borrow money to invest, but this is an advanced feature with risks.

How long does it take for my money to settle after I sell?

Stock sales settle in two business days, meaning the money appears in your cash balance two days after you sell. During those two days, the money is in transit but you can't withdraw it. After two days, it's yours to withdraw or reinvest.

Can I set up automatic investments on E*TRADE?

Yes, E*TRADE offers automatic investment plans where you can set up recurring transfers from your bank account and automatic purchases of specific stocks or ETFs. This is useful if you want to invest a fixed amount every month without having to log in and place trades manually.

What if I make a mistake on a trade?

If you place an order and realize it was wrong before it executes, you can cancel it through E*TRADE's platform — look for "Cancel Order" or "Pending Orders." If the trade has already executed, you'll need to place a new trade to sell what you bought or buy back what you sold. E*TRADE doesn't reverse trades after they've gone through.