Why E-Trade Charges Commission Fees, Explained (2024)

FAQs

Why is ETrade charging me a commission? ›

Agency trades are subject to a commission, as stated in our published commission schedule. Includes agency bonds, corporate bonds, municipal bonds, brokered CDs, pass-throughs, CMOs, asset-backed securities. Secondary market trades executed through a Fixed Income Specialist may be subject to a commission.

To avoid the monthly fee, the account holder must 1) maintain an average monthly balance of $1,000 or more on or after the end of the second statement cycle, or 2) maintain an average monthly balance of at least $1,000 in linked Morgan Stanley Private Bank accounts on or after the end of the second statement cycle, or ...

E*TRADE charges $1.50 per contract per side plus additional fees for futures, and $2.50 per contract per side plus additional fees for cryptocurrency futures. Robinhood's margin rate is 11.75% (7.75% for Gold members) as of May 23 2023. 15 E*TRADE's margin rates are based on stocks, ETFs, and options balance tiers.

A brokerage fee is a fee or commission a broker charges to execute transactions or provide specialized services on behalf of clients. Brokers charge brokerage fees for services such as purchases, sales, consultations, negotiations, and delivery.

Beginning Oct. 7, E*Trade will offer zero commissions on stocks, exchange-traded funds and options listed on U.S. exchanges. The decision comes after Charles Schwab Corp. —the biggest publicly traded electronic broker—said Tuesday that it was nixing trading commissions.

Brokerage fees are typically calculated as a flat rate per trade. A mutual fund commission, for example, is typically the same whether you're investing $5,000 or $500,000. However, some commissions are percentage-based, such as robo-advisor management fees.

With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].

Overall, we found E*TRADE is a good choice for active traders and investors—especially those who want access to a suite of excellent options tools. At the same time, Fidelity is better for casual investors and traders looking for low costs and access to international trading.

The suitability of Robinhood vs. E*TRADE depends in large part on the investments you want to hold. For crypto, options, and fractional share traders, Robinhood may be a good bet. For investors seeking mutual funds, CDs, bonds, and futures, E*TRADE may be the clear choice.

However, Charles Schwab has been around longer and ranked No. 1 in the J.D. Power 2023 Full-Service Investor Satisfaction Study. That said, with its robust trading platform, E*TRADE is a great option for active traders. Both platforms provide an impressive array of educational and research materials.

Is my money safe in Etrade? ›

Cash in brokerage accounts are swept into one or more FDIC-insured depository institutions as part of the Bank Deposit Program and are FDIC insured up to $500,000 for individual and $1,000,000 for joint accounts.

No annual IRA fees and no account minimums

Transaction fees, fund expenses, brokerage commissions, and service fees may apply.

Examples of brokers with Lowest brokerage charges in India include Zerodha, Angel One & Kotak Securities . These platforms often appeal to traders and investors seeking cost-effective options with transparent fee structures, providing a variety of financial instruments at competitive rates.

Percentage-based brokerage fees can range between 0.01% to 0.05% of the total value involved in a transaction, the lowest brokerage charges being 0.01%. On the other hand, flat fees range from Rs. 10 to Rs. 20 for every trade.

In the simplest definition, the commission is money paid out to a selling agent. For example, if you were selling cars and your selling agent was paid 5%, you would get 95% of the sales price. If you make a sale, you get some portion of the money from the purchaser.

A commission, or referral fee, is a percentage of the value of an order that you receive. Commission rates vary based on the type of sale you make and the product you sell. In the simplest definition, the commission is money paid out to a selling agent.

A commission is a service charge assessed by a broker or investment advisor for providing investment advice or handling purchases and sales of securities for a client.