Founded in 1982, E-trade has become a popular broker for trading penny stocks online. They have developed a strong reputation as a reliable brokerage, serving 3.6 million clients worldwide. What sets them apart from competition are their two trading platforms, competitive fee’s and charting tools.
Setting up an Account
Simply sign up for an account by completing an application form. The application process is relatively straightforward, it shouldn’t take longer than ten minutes to fill out the necessary details. A huge positive for E-trade is their low account minimum, only $500 is required to open a cash account and $2,000 for a margin account.
Fees and Commissions (3.5/5)
Although E-trade are not the cheapest, they still offer affordable commissions.
- The flat-fee commission structure and no surcharges on penny stocks makes them an ideal option for individuals trading low-priced shares. The flat fee means no matter how many shares you purchase, you pay the same price regardless.
- Commission structure is more favorable towards active day traders.
- $6.95 fee per trade is slightly above industry standard but the fee falls to $4.95 if you execute more than 30 trades in a quarter. Numerous online brokerages charge lower commissions but add on extra surcharges which dramatically increases the cost of trades.
- Latest promotion – deposit $10,000 and receive 90 days of commission free trades.
Trading Tools (4/5)
- Two advanced trading platforms – OptionsHouse and E-trade. Have intraday and historical charting, drawing tools, real-time quotes, market news and stock screeners etc.
- E-trade also have a mobile so you can follow the markets wherever you go!
- Tools are relatively to learn, even for beginners.
- Some trading tools are not free unless you meet the minimum number of trades per quarter.
Customer Service (4/5)
- E-trade have won awards from Smart Money due to its reliable customer service. Some of their customer support is outsourced to foreign countries to reduce expenses.
- Customer service is friendly when compared to other brokers.
- 24/7 support available, gives them an edge over competitors.
Like every broker, E-trade does receive negative reviews, it’s really difficult to keep all of their 3.6 million customers happy! For every bad compliant there could be 10 positive reviews from happy customers.
The most common complaints from clients:
- E-trade took over Options House and making the transition has frustrated some people.
- Customer service can be disappointing at times, different reps give contradicting answers. Don’t expect any issues to get solved too quickly.
- No extra fees for penny stocks.
- Have good borrows for shorting penny stocks.
- Beginner friendly.
- Minimum account deposit is $500; Interactive Brokers has a $10,000 account minimum.
- No inactivity or unnecessary acquaintance fees.
- No longer accept traders from Ireland and the UK. Check the list of accepted countries as from time to time, they change what countries they accept.
- Only active traders can access advanced features on the trading platform. In comparison, TD Ameritrade don’t impose any restrictions for their advanced platform.
- Quotes are delayed by 15 minutes unless you meet the 30 trades per month requirement.
If you’re interested in trading penny stocks, E-trade are great choice! Various experienced day traders such as Timothy Sykes highly recommend the brokerage!