E*TRADE charges fees for some services but not others, depending on the account type and what you're trading

E*TRADE does not charge commissions on stock, ETF, or options trades for most account holders. However, the company does charge fees for certain services: account maintenance fees for some account types, wire transfer fees, inactivity fees, and fees for services like margin interest or mutual fund transactions. The fees that apply to you depend on your account balance, the type of account you hold, and which services you actually use.

E*TRADE also charges different fees depending on whether you're trading stocks and ETFs (usually free) versus mutual funds (which may carry transaction fees) or using margin (which carries interest charges). Understanding which fees apply to your situation requires knowing what you plan to trade and how you plan to trade it.

Key Takeaways

  • Stock and ETF trades are commission-free for most E*TRADE accounts, but mutual fund purchases may carry transaction fees depending on the fund.
  • E*TRADE charges an account maintenance fee of $10 per month for accounts under $25,000, though this fee is waived if you meet certain conditions like setting up direct deposit.
  • Wire transfers out of your account cost $25 for domestic transfers and $35 for international transfers.
  • If your account sits inactive for 12 months with no trading activity, E*TRADE may charge an inactivity fee.
  • Margin accounts carry interest charges on borrowed money, and options trading may involve assignment or exercise fees in certain situations.

Commission-free trading on stocks and ETFs

E*TRADE does not charge a per-trade commission when you buy or sell stocks or exchange-traded funds (ETFs). This applies to most account types, including individual brokerage accounts, IRAs, and joint accounts. You can make as many stock or ETF trades as you want without paying a commission per transaction.

The lack of a commission does not mean there are no costs. When you trade, you pay the bid-ask spread — the difference between what buyers are willing to pay and what sellers are asking. This spread goes to the market maker, not to E*TRADE, and varies depending on how actively the stock or ETF trades. Highly liquid stocks and popular ETFs typically have tighter spreads, meaning lower costs to you.

Account maintenance fees and how to avoid them

E*TRADE charges a $10 monthly account maintenance fee for brokerage accounts with a balance under $25,000. If your account balance reaches $25,000 or more, the fee is waived. You can also avoid this fee by setting up a direct deposit of at least $250 per month into your E*TRADE account, or by being an active trader (making at least 30 trades per quarter).

This fee applies to individual brokerage accounts but not to retirement accounts like IRAs or Roth IRAs, which have different fee structures. If you're just starting out with a small balance, the direct deposit waiver is often the easiest way to avoid the monthly charge.

Mutual fund transaction fees

While stocks and ETFs trade commission-free, some mutual funds carry transaction fees when you buy or sell them through E*TRADE. These fees vary by fund and can range from $0 to $50 or more per transaction. E*TRADE offers a list of mutual funds with no transaction fee, but many funds outside that list will charge you when you trade them.

Before buying a mutual fund, check E*TRADE's mutual fund screener or the fund's detail page to see whether a transaction fee applies. If you plan to hold the fund long-term, a one-time transaction fee may be acceptable. If you plan to trade frequently, focusing on no-transaction-fee funds or ETFs (which are commission-free) makes more sense.

Wire transfer and cash management fees

Moving money out of your E*TRADE account by wire transfer costs $25 for domestic wires and $35 for international wires. These fees are charged by E*TRADE and are separate from any fees your receiving bank might charge. Transferring money into your E*TRADE account by wire is typically free.

If you need to move money frequently, consider using ACH transfers instead. ACH transfers are free and take three to five business days, whereas wire transfers are faster but cost money. E*TRADE also allows you to link external bank accounts and transfer funds electronically at no charge, which is useful for regular deposits or withdrawals.

Margin interest and options fees

If you borrow money from E*TRADE to buy securities (called margin), you pay interest on the borrowed amount. The interest rate varies based on how much you borrow and current market rates, but E*TRADE publishes its margin rates on its website. Margin accounts also require a minimum balance, typically $2,000, and carry more risk because losses can exceed your initial investment.

Options trading itself is commission-free, but E*TRADE may charge fees when an option is assigned or exercised. These fees are typically $0.65 per contract for assignment or exercise. If you trade options frequently, these small per-contract fees can add up.

Inactivity fees and account closure

E*TRADE charges an inactivity fee if your account has no trading activity for 12 consecutive months. The fee amount varies but is typically $25 to $50 per quarter. This fee applies only if your account remains inactive; making even one trade in a 12-month period resets the clock.

If you're opening an account but don't plan to trade immediately, be aware of this policy. You can avoid the fee by making at least one trade per year or by maintaining a high account balance (policies vary, so check E*TRADE's current terms). If you close your account, E*TRADE does not charge a closing fee.

Frequently Asked Questions

Does E*TRADE charge a fee just to have an account?

Yes, E*TRADE charges a $10 monthly account maintenance fee for brokerage accounts under $25,000, but you can waive it by setting up a direct deposit of $250 or more per month, maintaining a $25,000 balance, or making at least 30 trades per quarter. Retirement accounts like IRAs do not have this monthly fee.

Are there hidden fees I should know about?

E*TRADE publishes its fee schedule on its website, and there are no hidden fees. However, you may incur costs that are not E*TRADE fees directly — such as the bid-ask spread when trading stocks, or interest charges if you use margin. Always review the fee schedule for the specific account type you're opening.

Do I pay fees if I just hold stocks and don't trade?

You pay the $10 monthly account maintenance fee if your balance is under $25,000, but you do not pay per-trade commissions. If you hold your account inactive for 12 months, you may be charged an inactivity fee. Holding stocks long-term without trading does not trigger commission charges.

What's the cheapest way to transfer money out of E*TRADE?

ACH transfers are free and take three to five business days. Wire transfers cost $25 domestically or $35 internationally but arrive within one to two business days. For regular transfers, ACH is the most cost-effective option.

Do retirement accounts like IRAs have different fees?

E*TRADE IRAs and Roth IRAs do not have the $10 monthly account maintenance fee that regular brokerage accounts charge. However, they may have other fees depending on the services you use, such as wire transfer fees or mutual fund transaction fees. Check E*TRADE's IRA fee schedule for details.