Etrade is one of the most popular online brokers in the United States, providing access to a wide range of investment products and services. However, as with any broker, there are fees associated with using Etrade. In this article, we will take a closer look at Etrade stock fees and how they impact your investment returns.
Account Types and Fees
Etrade offers several types of accounts, including individual, joint, and retirement accounts. Each account type has its own fee structure, which can vary based on factors such as account balance, trading frequency, and the type of investment products you use. For individual accounts, Etrade charges a $6.95 commission per trade for stocks and ETFs, with options trades costing an additional $0.75 per contract. However, frequent traders can qualify for discounted commissions based on their trading activity.
Options Trading Fees
Options trading can be an effective way to hedge your portfolio or generate income, but it also comes with its own set of fees. In addition to the $0.75 per contract fee mentioned above, Etrade charges an options exercise and assignment fee of $19.99, as well as a $0.65 per contract fee for options assignments.
Mutual Fund Fees
Etrade offers access to thousands of mutual funds, including both no-load and load-waived funds. However, there are fees associated with investing in these funds. Etrade charges $19.99 per transaction for no-load funds, while load-waived funds are subject to a $49.99 transaction fee.
Account Maintenance Fees
In addition to trading fees, Etrade also charges account maintenance fees. For individual accounts, there is a $6.95 monthly account fee, which can be waived if you maintain a minimum account balance of $10,000 or make at least 30 trades per quarter. Retirement accounts are subject to different fees, with traditional and Roth IRAs charged a $20 annual account fee. However, this fee can be waived if you maintain a minimum account balance of $10,000 or complete at least 30 trades per quarter.
Other Fees to Consider
In addition to the fees mentioned above, there are other fees to consider when using Etrade. These include: – Wire transfer fees: $25 for domestic transfers, $50 for international transfers – Account transfer fees: $75 for full account transfers, $25 for partial account transfers – Paper statement fees: $2 per statement – Inactivity fees: $50 per year for accounts with no activity for 12 months It is important to consider these fees when choosing a broker, as they can impact your investment returns over time.
Etrade is a popular online broker that provides access to a wide range of investment products and services. However, as with any broker, there are fees associated with using Etrade. By understanding these fees and how they impact your investment returns, you can make informed decisions about your investment strategy and minimize the impact of fees on your portfolio.