Choosing A Broker: E*Trade
July 28, 2009 by Tisa Silver
Filed under Finance
How do you know which broker is best for you? Today, I will continue covering the basics of the discount brokers by highlighting E*Trade (Ticker: ETFC).
Remember, the level of services you need will help you decide whether to go with a full-service broker or a discount broker.
How To Trade: E*Trade offers online and broker-assisted trades. You can speak to one of their financial advisors for more personalized advice. E*Trade also has branches in 15 states, and the District of Columbia.
Commissions: Trades are priced depending on the number of trades placed per quarter and the amount of assets held with E*Trade. More trading activity leads to cheaper commissions. Here are the ranges: $6.99 per trade assuming 1500+ trades per quarter, $7.99 per trade assuming 150-1499 trades per quarter.
Trades cost $9.99 each for those with more than $50,000 or 30-149 trades per quarter, and trades cost $12.99 each for those with less than $50,000 in assets and less than 30 trades per quarter. Broker-assisted trades cost an addition $45 per trade, and additional costs may apply to trading options, bonds and mutual funds. (View all commissions)
Account Minimum: The minimum amount to open a cash account is $1,000. A minimum of $2,000 is required to open a margin account. There is no minimum initial deposit required for retirement accounts if you sign up for electronic statements and confirmations.
FYI: E*Trade also offers banking features such as checking, bill pay and ATM cards. Additional fees may apply for account activity, paper statements and special requests. E*Trade is ranked SmartMoney’s 2009 #1 Online Broker.
For more information on trading with E*Trade, visit etrade.com. For E*Trade reviews, visit Dogs of the Dow and the SmartMoney Annual Broker Survey.
Tomorrow, I will profile Scottrade.
Disclaimer: Brokerage commissions are subject to change, explore them yourself by visiting the broker’s web site or calling customer service for up-to-date information BEFORE you place any trades. The prices provided within this post were compiled on 7/27/09.
