This guide is for retail investors and active traders who use (or are considering) ETRADE for stocks, ETFs, options, mutual funds, or managed funds.
It explains exactly which trades and account actions incur fees at ETRADE, which common charges are waived, and where hidden or third‑party charges can appear. You will see concrete numbers to estimate cost per trade, per contract, broker assistance, mutual‑fund examples, and simple steps to reduce fees.
You get a clear rundown. Learn the headline $0 items and the fees that remain. See real examples using $0, $0.65, $0.50, $25, and $0.005. Check how ETRADE passes regulatory costs and when fund‑level charges still apply. Use the quick checklist at the end to lower cost.
Quick Answer / TL;DR
ETRADE charges $0 commission for online US‑listed stock, ETF, mutual fund, and options trades for retail online customers. Options have a per‑contract fee: $0.65 standard or $0.50 if you execute ≥30 stock/ETF/options trades in a quarter. Broker‑assisted trades add $25 per trade; directed ECN trades via ETRADE Pro can add $0.005 per share. Some mutual funds (including ETRADE No Fee Funds) quote a 0.00% expense ratio, but platform exclusions, short‑term redemption fees, and third‑party regulatory pass‑throughs can still apply. Review your trade confirms and statements to see small line items that add up on high volume.
1) Overview of ETRADE’s fee approach — $0 and variable charges
State the headline. Retail online trades for US‑listed stocks, ETFs, mutual funds, and options show $0 commission. Check that this $0 applies to standard online orders only. Exclusions apply for OTC (over‑the‑counter) securities, foreign shares, and special large‑block trades.
Expect other charges. Options carry a per‑contract fee of $0.65. Active traders who do ≥30 stock/ETF/options trades in a quarter pay $0.50 per contract. Directed order routing via ETRADE Pro can add $0.005 per share when you route to specific ECNs (electronic communications networks). Broker assistance costs $25 extra per trade.
Understand pass‑throughs and discretion. ETRADE offsets third‑party costs charged by the SEC, FINRA, exchanges, DTC, and NSCC. The firm may set fees in its reasonable discretion and use rounding or allocation methods. That can mean a $0 trade still shows regulatory fees of a few cents or a per‑share charge on high‑volume orders.
Wrap up. $0 eliminates retail online commissions for many trade types. Variable costs remain for options contracts, broker service, directed routing, and regulatory pass‑throughs. Treat $0 as the baseline, not the total cost.
Watch out for: $0 commission does not mean zero cost. Small regulatory fees, settlement charges, and execution routing fees can add 1–5 cents per trade or more on high volume.
Key numbers here: $0, $0.65, $0.50, $0.005, 30 trades, 1 commission per order.
2) Trading fees and commissions breakdown — $0 trades, $0.65/$0.50 options, $25 broker‑assist
Stocks & ETFs. Place a single online market or limit order for US‑listed stocks or ETFs and the commission is $0. That applies to common shares and most ETFs. Exclusions include OTC securities and foreign ADRs. If you buy 100 shares of a US ETF, expect $0 commission plus any tiny regulatory fees.
Options pricing. Options charge a per‑contract fee. Standard retail online customers pay $0.65 per contract. Hit the volume threshold of at least 30 stock/ETF/options trades in a calendar quarter and the per‑contract fee drops to $0.50. If you sell 4 option contracts, the cost is 4 × $0.65 = $2.60, or 4 × $0.50 = $2.00 if you qualify.
Broker‑assisted trades. Call a broker and you pay an extra $25 per trade. That $25 is additive to any commission or per‑contract fees. Example: place a broker‑assisted order that includes 2 option contracts. Pay $25 + (2 × $0.65) = $26.30 standard. Broker assistance can save time, but costs scale per trade.
Partial fills and multiple executions. ETRADE charges one commission for an order that executes across multiple lots during a single trading day. If your 1,000‑share order fills in three pieces, you still see one commission line on that day’s execution summary. Per‑contract fees still multiply by executed contracts.
Concrete examples:
– Place a single online stock trade → $0 commission.
– Buy 100 shares of an ETF → $0 commission, check for small regulatory fees.
– Sell 4 option contracts → 4 × $0.65 = $2.60 (or 4 × $0.50 = $2.00 if you qualify).
– Request a broker to place the trade → add $25.
Watch out for: directed ECN fees during regular or extended hours, and special session trades that may be routed differently.
Key numbers here: $0, $0.65, $0.50, $25, 1 commission per order, 100 shares, 4 contracts.
| Fee type | Typical charge | Discount / condition | Notes |
|---|---|---|---|
| Online US stock/ETF trade | $0 | N/A | Excludes OTC and foreign shares |
| Options per contract (standard) | $0.65 | N/A | Multiply by contracts executed |
| Options per contract (active) | $0.50 | ≥30 trades per quarter | Quarter = platform measurement window |
| Broker‑assisted trade | $25 + fees | N/A | Additive to any contract or regulatory fees |
| Directed ECN routing | $0.005 per share | When routed via ETRADE Pro | Applies to certain ECNs, can hit high volume |
3) Mutual funds, no‑fee funds, and fund‑level costs — 0.00% funds, 6,000+ funds, 90‑day short‑term rules
Mutual‑fund access. ETRADE offers thousands of mutual funds—over 6,000 choices. Many funds are no‑transaction‑fee (NTF). ETRADE also offers a set of No Fee Funds that list a 0.00% unitary fee. Purchases of No Fee Funds are available only through self‑directed ETRADE accounts.
How No Fee Funds work. A 0.00% expense ratio means the manager absorbs typical operating costs. ETRADE’s No Fee Funds have no minimum initial investment for purchases through the platform. However, litigation and extraordinary expenses may still be allocated to the fund and can alter net costs. Expect 0.00% quoted, but read the prospectus for exclusions.
Other fund fees. Short‑term redemption fees commonly apply. Many funds impose a redemption fee for sales within the first 90 days to discourage rapid trading. Some fund families charge front‑end or back‑end loads or transaction fees; ETRADE’s NTF list exempts many but not all funds. Example: buy a fund and sell within 60 days; you may face a 0.25%–2.00% redemption fee, depending on the fund.
Practical guidance. Prefer NTF or No Fee Funds to avoid upfront transaction charges. Check fund prospectuses for actual expense ratios, redemption windows, and transfer rules. If you plan frequent trading, expect short‑term windows like 30, 60, or 90 days.
Bullet points:
– No Fee Fund expense ratio: 0.00% quoted.
– Number of mutual funds available: 6,000+.
– Typical short‑term redemption window: 90 days.
– Possible redemption fee range: 0.25%–2.00% (varies by fund).
– No minimum initial investment for No Fee Fund purchases on ETRADE.
Watch out for: ETRADE platform policies may add restrictions or fees that differ from the fund prospectus.
Key numbers here: 0.00%, 6,000+, 90 days, 0.25%–2.00%, 30 days, 60 days.
4) Account, transfer, and service charges — $0 account minimum, broker transfer and service fees
Account basics. Open a standard brokerage account with no minimum required. ETRADE typically charges $0 for account opening and has no routine annual fee for brokerage accounts. Expect no inactivity fee and no routine closing fee for standard accounts.
Service and processing charges. Some services carry fees. Outgoing account transfers may have per‑position fees or a flat fee. Wire transfers commonly cost between $10 and $35 depending on domestic or international routing. Overnight check requests or paper statements may carry fees; choose electronic delivery to avoid those. Example: request a same‑day domestic wire and expect a fee in the $25–$35 band.
Transfers and managed accounts. Transfer‑out fees differ by asset type. A broker‑to‑broker ACAT transfer can cost $75 flat or $25 per position, depending on the firm and the assets. Managed accounts charge advisory or wrap fees, typically expressed as a percentage like 0.25%–1.50% of assets under management (AUM). Example: a $100,000 managed account at 1.00% AUM costs $1,000 annually.
How to check and avoid. Use ACH transfers to move cash; ACH is usually free. Decline paper statements to skip statement fees. Ask for fee schedules before initiating transfers or managed services.
Bullet list of concrete numbers:
– Account minimum: $0.
– Broker‑assisted trade surcharge: $25.
– Directed order fee: $0.005 per share (when applicable).
– Typical wire fee: $10–$35.
– Managed account fees: 0.25%–1.50% AUM.
– Transfer‑out fee example: $75 flat or $25 per position.
Watch out for: outbound transfer fees and managed‑account percentages that compound annually.
Key numbers here: $0, $25, $0.005, $10, $35, $75, $25, 0.25%–1.50%, $100,000.
5) Regulatory, exchange, and execution charges — $0.005 directed fees and pass‑throughs
Regulatory pass‑throughs. Regulatory and exchange fees arise from outside bodies: the SEC, FINRA, national exchanges, clearing houses, DTC, and NSCC. ETRADE designs some fees to offset these third‑party costs. The broker can determine such fees in its reasonable discretion.
Execution charges and ECN routing. Directed trades executed through ETRADE Pro to an ECN during regular hours (and certain extended sessions) are subject to a directed order fee of $0.005 per share. Market centers may charge per‑share or per‑trade fees that ETRADE passes through or embeds in its routing choices.
How these charges appear. Small line items show up on trade confirms and monthly statements. They may appear as a few cents per trade or as aggregated totals. For example, 1,000 shares routed to a feeed ECN at $0.005 per share equals $5.00 in routing fees.
Actions to control costs. Check routing settings in your account to avoid directed ECN routing on small trades. Review trade confirmations for line items like “exchange fee” or “regulatory fee.” Aggregate high‑volume strategies to reduce frequent per‑trade charges.
Bullet list of how fees may appear:
– Directed order fee: $0.005 per share.
– Example: 1,000 shares × $0.005 = $5.00.
– Broker‑assisted add‑on: $25 per trade.
– One commission charged per order that executes in multiple lots during a single trading day.
Watch out for: rounding and allocation methods that make platform fees slightly different than raw third‑party charges.
Key numbers here: $0.005, $5.00, $25, 1,000 shares, 1 commission.
6) How to minimize fees — reach 30+ trades, use NTF funds, avoid broker assist, hold 90+ days
Place online trades. Use the online platform for most orders to keep commissions at $0. Skip broker assistance to avoid the $25 surcharge. Set default routing to smart/exchange routing rather than directed ECN routing to avoid $0.005 per‑share charges on small trades.
Optimize options costs. Aim for the volume discount: execute at least 30 stock/ETF/options trades in a quarter to reduce the options per‑contract fee from $0.65 to $0.50. Track your trade counts: 30 trades within the platform’s quarter measurement window triggers the discount. If you trade 60 contracts spread across 30 trades, you pay 60 × $0.50 = $30.00 at the discounted rate.
Choose low‑cost funds and hold. Prefer no‑transaction‑fee mutual funds and ETRADE No Fee Funds with a 0.00% quoted expense ratio. Avoid short‑term redemptions; hold more than 90 days to avoid typical redemption fees. Example: avoid selling within 30–90 days to skip a potential 0.25%–2.00% redemption charge.
Batch actions and use ACH. Batch multiple small trades into fewer larger orders to reduce per‑trade or per‑share routing costs. Use ACH transfers to move cash free of wire fees. Consider limit orders to control execution and avoid multiple partial fills that can complicate cost tracking.
Checklist to minimize fees:
– Use online orders: $0 per stock/ETF trade.
– Avoid broker assistance: save $25 per trade.
– Reach 30 trades per quarter: drop options cost to $0.50 per contract.
– Use NTF or No Fee Funds: 0.00% quoted expense ratio.
– Hold funds >90 days to avoid short‑term redemption fees.
Watch out for: chasing the options discount by overtrading. Calculate if the per‑contract saving justifies extra trades and potential market impact.
Key numbers here: $0, $25, $0.65, $0.50, 30 trades, 60 contracts, 0.00%, 90 days, 0.25%–2.00%.
Comparison table: fee examples and scenarios
| Scenario | Typical fees shown | Example cost | Notes |
|---|---|---|---|
| Single online stock buy (100 shares) | $0 + regulatory pass‑through | $0 + a few cents | Use smart routing to minimize $0.005 hits |
| Sell 4 option contracts (standard) | $0.65 × 4 | $2.60 | Drop to $2.00 if you meet 30 traded orders per quarter |
| Broker‑assisted stock trade (100 shares) | $25 add‑on + any fees | $25 + small pass‑through | $25 is additive |
| Directed ECN routing (1,000 shares) | $0.005 per share | $5.00 | Applies when routed via ETRADE Pro to certain ECNs |
| No Fee Fund purchase | 0.00% expense ratio | $0.00 quoted | May still face extraordinary fund expenses or platform fees |
| Transfer out via ACAT | $75 flat or $25/position | $75 or $25 × positions | Check asset type for exact fee |
Closing checklist and next steps
Review your current fees. Pull three recent trade confirms and one monthly statement. Check for these line items: per‑contract charges, directed order fees, exchange/regulatory pass‑throughs, and any broker‑assisted surcharges.
Take these actions:
– Switch to online orders for routine trades to keep equity/ETF trades at $0.
– If you trade options, track your trades. Reach 30 trades per quarter to get $0.50 per contract instead of $0.65.
– Disable directed ECN routing for small orders to avoid $0.005 per share fees.
– Use ACH transfers and electronic statements to avoid $10–$35 wire or paper fees.
– Choose NTF or No Fee Funds and hold longer than 90 days to avoid redemption fees.
Keep monitoring. Fees and routing behavior can change. Check ETRADE’s pricing page and your account disclosures regularly. Compare actual per‑trade costs using the numbers here: $0 commission baseline, $0.65 or $0.50 per options contract, $25 broker assist, $0.005 per directed share, and 0.00% quoted for many No Fee Funds. Use those figures to model costs for 10 trades, 100 trades, or large position transfers.
Act now. Audit your last 30 trades. Adjust routing and delivery settings. Save the per‑trade cents that add up to real dollars on high volume.