E*TRADE Review

Company Overview

E*TRADE is a financial corporation based in the United States and offers a discount brokerage service to self-directed clients. E*TRADE also offers a variety of self-directed IRA accounts for individual users and small businesses. This company was founded in 1982 and has since become one of the most well-known retail investment firms in the U.S. In 2011, StockBrokers.com Online Broker Review, E*TRADE finished first overall and was given a 5 star rating. For two consecutive years (2013 and 2014), by the same review, E*TRADE was awarded 4-star ratings and received the titles of Best Client Dashboard and Best Smartphone App.

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Account Options

 Minimum ContributionMaximum Contribution
Roth IRANo Minimum$5,500/year (if under 50);
$6,500/year (if age 50 or older)
Traditional IRANo Minimum$5,500/year (if under 50);
$6,500/year (if age 50 or older)
SEP IRANo Minimum25% of compensation (up
to $52,000)
SIMPLE IRANo Minimum$12,000/year (if under 50);
$14,500/year (if age 50 or older)
Self-Directed IRA--
Rollover IRANo MinimumNo Limit
Inherited IRANo MinimumNo Limit

 

The available IRA accounts at E*TRADE are standard and are typically available at most companies offering retirement accounts. For more detailed information, it is best to contact an E*TRADE Financial Consultant.

Investment Options

Associated Ira Investment Fees
Stocks$9.99
Mutual Funds$19.99*
Options$9.99 plus $0.75/contract
Exchange-Traded Funds$9.99
Annuities--

 

*The regular transaction fee for mutual funds is $19.99. There are also no transaction fee Mutual Funds. For more information, consult the E*TRADE website and an E*TRADE Financial Consultant.

The standard investment options including Stocks, ETFs, mutual funds and options are available for Roth IRAs and all other IRA accounts. In addition to these options, clients can also invest in bonds when they open an IRA account with E*TRADE. The investment options at E*TRADE are usually available at most retirement investment companies. However, annuities are not available for IRA accounts at E*TRADE.

Fees and Commissions

Account Related Fees For Ira
Minimum Account Balance RequiredNone
Account Maintenance FeeNone*
Termination FeeNone
Transfer Fee$60.00

 

*While there are no Account Maintenance Fees, there are other fees that do apply. For more information, consult the E*TRADE website and an E*TRADE financial consultant.

There are minimal fees at E*TRADE (save for a $60.00 transfer fee) so opening and maintaining an IRA at E*TRADE is generally less expensive than at most other retirement investment companies. The low cost pricing allows nearly any investor to open an IRA account. In addition, all investors have access to retirement guidance and support to help them choose the right IRA based on their current situation and their future financial goals.

Retirement Planning

There are a large number of retirement and investment tools available at E*TRADE. These tools are designed to help investors make the most out of their retirement planning. One of the best tools at E*TRADE is the IRA calculator. This calculator helps investors choose the right IRA account based on a few easy-to-answer questions. Another benefit of opening an IRA account with E*TRADE is the advisory service that is provided. At any time, investors can speak to a Financial Consultant who will evaluate their portfolio and provide one time advice on retirement investments. There is also a research and education center that offers the latest information on the financial markets and retirement planning.

Account Features

E*TRADE IRAs are suited best for the investors, and retirement-minded individuals 18 and older, though clients must be under the age of 70 ½ to open a Traditional IRA. Both Traditional and Roth IRAs require clients to also have earned income. There is no income limit to open a traditional IRA. However, in order open a Roth IRA single filers cannot make more than $129,000 per year and joint filers cannot make over $191,000 per year. Clients will need to provide their SSN, financial statements and their personal information to apply for an IRA.

Accessibility

Multi-device functionality
Mobile Sitecheck
iOS Accessiblecheck
Android Accessiblecheck

 

The mobile app and mobile site from E*TRADE allows clients open a retirement account, manage their account, place trades and more. There is also a voice recognition option available that allows investors to search for various securities.

Safety and Security

E*TRADE uses the most advanced security measures to protect clients against online fraud. The site is secured by Norton and regularly scanned to prevent malicious programs from infecting the site. Securities in accounts at E*TRADE are protected by SIPC up to $500,000 (of which $250,000 of it is in cash). E*TRADE is highly trusted and works diligently to protect the integrity of client accounts.

Customer Support

Customer support is available 24 hours a day, 7 days a week at E*TRADE. The customer service team is experienced, professional and capable of handling or directing all inquiries. Clients can contact customer service via telephone, email or live chat. With live chat and telephone, clients will immediately get a response. If email is used, clients will usually receive a response on the same day. The representatives at E*TRADE are friendly and are always willing to resolve any questions or concerns.

Bottom Line

While E*TRADE does not offer annuities, they do provide a wide range of options for the average investor. With low cost retirement accounts, investors can enjoy the benefits of an IRA account without worrying about paying significant account or trading fees.

In addition, you can easily get investment recommendations from online tools or an E*TRADE Financial Consultant. One of the best features of E*TRADE is that if you choose, you can be in complete control of all your investments.

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