does etrade charge for stock trades? Guide

A clear, up-to-date guide answering “does etrade charge for stock trades” — explains E*TRADE’s $0 commission policy for U.S.-listed stocks/ETFs, product exceptions (OTC, mutual funds, bonds, future...

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Does E*TRADE charge for stock trades?

Many investors ask: does etrade charge for stock trades, and what exactly counts as a free trade? This guide gives a practical, up-to-date answer and shows the common exceptions, additional fees, and where to confirm live pricing. Read on to learn how E*TRADE currently prices U.S.-listed stock and ETF trades, how other products differ, and sample scenarios that show what you might actually pay.

As of June 2024, according to E*TRADE’s published Pricing & Rates disclosures, online self-directed trades of U.S.-listed stocks and ETFs are generally commission-free. That policy is the foundation for most retail brokerage accounts, but several product-specific and service-specific fees remain in effect.

Quick answer: does etrade charge for stock trades? For standard online self-directed trades of U.S.-listed stocks and ETFs the answer is typically “no” — $0 commission — but there are notable exceptions (OTC stocks, certain mutual funds, broker-assisted trades, directed-order fees, regulatory and exchange pass-throughs, and non-U.S. products).

Background and context

E*TRADE is a long-established retail brokerage in the United States. It competes with other mass-market brokers by offering trading tools, retirement accounts, and investment products for individual investors.

In 2020, E*TRADE was acquired by a large financial institution, which shifted the company’s ownership and integrated some services. The retail brokerage business has broadly trended toward zero-commission trading for U.S. equities and many ETFs.

This industry trend — driven by competition for retail order flow and the rise of mobile investing — prompted major brokers, including E*TRADE, to eliminate base commissions on online trades of U.S.-listed stocks and ETFs. That change lowered visible trading costs but left a set of other fees and execution considerations that still affect total cost.

Many readers asking “does etrade charge for stock trades” are reacting to that headline change; the rest of this guide explains the practical boundaries of that zero-commission model.

Current fee structure (overview)

E*TRADE organizes pricing by product and by how the order is placed. The main dimensions are:

Product type: U.S.-listed stocks and ETFs, options, OTC/grey-market stocks, mutual funds, bonds/CDs/fixed income, futures, and crypto futures.
Order method: online self-directed orders, broker-assisted trades placed with a representative, and directed orders routed to specific execution venues.

Regulatory and exchange fees (pass-throughs) can still apply, and certain specialized services carry surcharges. Fee schedules change over time, so verify live pricing with E*TRADE’s official disclosures when making decisions.

The rest of this section breaks down pricing by product.

U.S.-listed stocks and ETFs

For most retail customers, online self-directed trades of U.S. exchange-listed stocks and ETFs are commission-free (displayed as $0). That means when you place a standard market or limit order for a share listed on a U.S. exchange through the E*TRADE web or mobile platform, there is typically no base commission.

However, answers to “does etrade charge for stock trades” must include exceptions:

Directed-order fees: If you instruct ETRADE to route your order to a specific market center or alternative trading system that charges access or routing fees, ETRADE may pass through a directed-order fee or surcharge.
Odd-lot, extended-hours, or special-order routing: Certain nonstandard order types can incur routing or execution charges.
Transactional pass-throughs: Small regulatory fees levied by exchanges or regulators may be listed on confirmations (these are not E*TRADE commissions but required pass-throughs).

In practice, for typical online buys and sells of U.S.-listed stocks and ETFs, the commission line item will show $0 in real-time. Yet the trade confirmation may show regulatory/exchange fees separately when they apply.

Options

Options orders at ETRADE typically have a $0 base commission for online self-directed trades plus a per-contract fee. A typical public per-contract rate is shown in ETRADE’s disclosures (for example, $0.65 per contract for many retail customers), with possible volume or pricing tiers for high-activity traders that reduce the per-contract charge.

When considering “does etrade charge for stock trades,” remember options are priced differently: the $0 base applies to the options order, but the per-contract fee and any regulatory fees still apply. Option regulatory fees and exchange fees may be added as pass-through items on confirmations.

Over-the-counter (OTC) stocks

OTC securities (including OTCBB and grey-market listings) are generally excluded from the $0 commission regime for exchange-listed equities. OTC trades often carry an explicit commission or a different pricing schedule.

E*TRADE’s public fee materials historically list a per-trade charge for OTC transactions (for example, a set commission rather than $0 on exchange-listed shares). Fee levels vary by account type and activity, and in some cases high-volume or active traders may qualify for discounted OTC pricing.

Because OTC markets are less liquid and more costly to access, expect different treatment than for listed stock trades.

Mutual funds

Mutual fund pricing varies by fund family and share class. E*TRADE typically offers a roster of no-transaction-fee (NTF) mutual funds that can be traded without a transaction charge. Other funds are transaction-fee funds, which carry a purchase fee or sales charge when transacted.

Short-term redemption fees: Some funds impose an early redemption or short-term trading fee if you sell shares within a defined window after purchase. These fees come from the fund and are independent of E*TRADE’s commission policy.

When asking “does etrade charge for stock trades,” note that mutual funds are a separate product class with their own fee framework.

Bonds, CDs and fixed-income products

Fixed-income transactions follow different conventions. Pricing for new-issue Treasury auctions is often $0 for retail investors buying at auction through the platform, but secondary-market bond trades may include per-trade fees, per-bond fees with minimums/maximums, or principal markups/markdowns.

Brokered CDs and corporate/municipal bond trades can include a markup or markdown embedded in the price rather than a separate visible commission. Always check the trade confirmation to see whether the cost was presented as a visible fee or reflected in the price.

Futures and cryptocurrency futures

Futures contracts are usually charged per-contract commissions plus exchange, clearing, and NFA fees. Fee schedules differ by product and venue (for example equity index futures vs. commodity futures).

Crypto futures (where offered) often carry different fee elements and sometimes higher per-contract charges due to specialized clearing or product complexity.

Broker-assisted trades and directed orders

Broker-assisted trades placed by calling a representative typically incur a broker-assisted surcharge — a set dollar amount added to the cost of the trade. Directed orders (where you require a specific routing) can also generate additional routing or access fees.

If you plan to use human assistance for trade entry or insist on specific routing, factor in these surcharges when asking “does etrade charge for stock trades.” In many cases the $0 base commission applies only to online, self-directed executions.

Additional fees and account charges

Beyond trade commissions, several non-trade fees can affect the total cost of using a brokerage account. Common items include:

Regulatory and exchange pass-through fees (small amounts that may appear on confirmations).
Wire transfer fees for outgoing wires.
Paper statement or mailed-confirmation fees (usually avoidable by choosing electronic delivery).
Account transfer fees (outbound ACAT fees) for moving accounts to another broker.
Forced-liquidation or margin maintenance penalty fees in margin accounts if liquidations are required.
Special custody or paper-handling fees for some account types.

E*TRADE typically does not charge inactivity fees for standard brokerage accounts, but specific account types may have separate maintenance or custodial charges.

Margin interest and financing costs

Margin borrowing is charged as interest based on the account’s margin debit balance. Margin rates are tiered: higher balances typically qualify for lower percentage rates, and smaller balances pay higher rates.

Margin interest is entirely separate from trade commissions. So even if the answer to “does etrade charge for stock trades” is $0 for a particular trade, margin interest will accrue if you carry a debit balance.

Always check the margin-rate table in E*TRADE’s Pricing & Rates disclosures for current rates tied to balance thresholds.

How fees are applied and sample scenarios

Trade confirmations and account statements show how fees are applied. Typical line items include a commission line, per-contract fees (for options), and small regulatory/exchange pass-throughs. For fixed-income transactions, costs may be embedded as price differentials rather than separate commission lines.

Sample scenarios:

Online buy of a U.S.-listed stock (standard market order)
- Commission: $0
- Exchange/regulatory pass-throughs: usually none for simple stock trades, but may appear for special circumstances
- Net cost: price paid multiplied by shares, plus any small pass-throughs if applicable
Options order (buy 5 contracts)
- Base commission: $0
- Per-contract fee: e.g., $0.65 x 5 = $3.25 (rate may vary)
- Regulatory/exchange fees: added as applicable
- Net cost: premium + per-contract fees + pass-throughs
OTC stock trade
- Commission: per-trade OTC commission (not $0); example amount varies by fee schedule
- Net cost: price + OTC commission + pass-throughs

These examples show why answers to “does etrade charge for stock trades” should be precise: base commissions are often $0 for listed equities, but product- and service-specific fees remain.

Comparison with other brokers

Most major U.S. retail brokers have adopted $0 commissions for online trades of U.S.-listed stocks and many ETFs, so the practical, visible outcome is similar across firms.

Key differentiators are:

Options per-contract rates: different brokers use different per-contract fees and volume discounts.
OTC and mutual-fund commission policies: some brokers offer wider NTF fund lists or lower OTC fees.
Margin interest rates: margin-rate schedules vary and can affect the cost of leverage.
Broker-assisted and directed-order fees: these surcharges differ by broker.

If you are comparing E*TRADE to peers, focus on the specific product fees that matter to you (options per-contract rate, mutual-fund offerings, bond pricing, margin rates) rather than just headline $0 equity commissions.

When $0 commission does not mean “no cost”

Zero visible commission removes one line item but does not remove all trading costs. Other ways trading still costs money:

Bid/ask spread: the difference between buy and sell prices is a primary implicit cost.
Execution quality and price improvement: where and how orders are routed affects the fill price.
Exchange/regulatory pass-through fees: small mandatory fees that can appear on confirmations.
Markups on bonds and fixed-income instruments: costs may be embedded in price.
Directed-order or routing charges: if you specify routing, additional fees may be charged.

Understanding these elements helps answer “does etrade charge for stock trades” in a complete way: yes for some items, no for the headline commission in many cases.

How to check current, authoritative fees

To verify live pricing you should consult E*TRADE’s official Pricing & Rates page and the full fee schedule for your account type. Also review the brokerage account disclosures and product-specific pricing for options, futures, bonds, and mutual funds.

When in doubt, contact E*TRADE’s customer support for confirmation of current rates and how they apply to your specific trade types and order-routing choices.

Frequently asked questions (FAQ)

Q: Are US stock and ETF trades free? A: For online self-directed trades of U.S.-listed stocks and ETFs, E*TRADE typically shows $0 commissions. Exceptions include directed orders, special routing, and some nonstandard products.

Q: Do I pay anything for options trades? A: Options trades usually have a $0 base commission plus a per-contract fee (a common retail rate is shown publicly, with possible volume discounts). Regulatory fees may apply.

Q: What about international or OTC stocks? A: International and OTC securities often have separate fees. OTC trades commonly carry a per-trade commission rather than $0. International trades may incur foreign exchange, execution, or routing charges.

Q: Are there hidden fees? A: No hidden fees are allowed, but small regulatory/exchange pass-through fees, bid/ask spreads, and execution-related costs can appear and increase total trading cost. Also broker-assisted and directed orders can add explicit surcharges.

References and sources

ETRADE Pricing & Rates (official disclosure page) — referenced for current public fee policies. As of June 2024, ETRADE’s published materials confirm $0 online commissions for U.S.-listed equities and ETFs.
E*TRADE Brokerage Account overview — for account-type features and service definitions.
Independent reviews summarizing ETRADE fees (examples used for comparison and context): NerdWallet ETRADE review; BrokerChooser ETRADE fees summary; Wise article on ETRADE fees; BrokerReview E*TRADE fee schedule. These sources provide independent summaries and historical fee comparisons.

All readers should verify live terms on E*TRADE’s official disclosures because broker fees and rate tables change over time.