Opening an E*TRADE Account and Logging In

To use E*TRADE, you first create an account on their website or through their mobile app. You will need to provide your Social Security number, date of birth, employment information, and an initial funding method — usually a bank account or wire transfer. E*TRADE will verify your identity and may ask for additional documents depending on the account type you choose.

Once your account is open and funded, you log in with your username and password. E*TRADE offers two-factor authentication (a security code sent to your phone or email) to protect your account. After you log in, you see your account dashboard, which displays your cash balance, holdings, and account value.

Key Takeaways

  • You fund your account through a bank transfer or wire, then use that cash to buy stocks, ETFs, mutual funds, or other investments.
  • The main trading screen lets you search for a security by ticker symbol, enter the number of shares you want, and choose between a market order (buy immediately at current price) or a limit order (buy only at a price you set).
  • You can hold investments long-term or sell them whenever you want during market hours; E*TRADE charges no commission on stock and ETF trades.
  • Your account shows real-time prices, your transaction history, and performance reports so you can track what you own and how it is performing.
  • E*TRADE offers research tools, educational content, and customer support by phone, chat, or email if you have questions about how to execute a trade.

Funding Your Account and Understanding Cash Balance

Before you can buy any investment, you must transfer money into your E*TRADE account. You can link a bank account and set up an electronic transfer, which usually takes three to five business days to clear. Alternatively, you can wire money directly, which is faster but may involve a wire fee depending on your bank.

Once the money arrives, it sits in your account as cash. This cash balance is what you use to purchase stocks, ETFs, mutual funds, or bonds. If you sell an investment, the proceeds return to your cash balance. E*TRADE displays your available cash and your buying power (which may be higher if you are using margin, a feature that lets you borrow money to invest).

Placing a Trade: Stocks, ETFs, and Mutual Funds

To buy an investment, log into your account and navigate to the trade or order screen. Search for the security using its ticker symbol — for example, AAPL for Apple or SPY for an S&P 500 ETF. E*TRADE shows you the current price, recent performance, and basic information about the company or fund.

Enter the number of shares you want to buy. Then choose your order type. A market order buys immediately at the current market price. A limit order lets you set a maximum price you are willing to pay; the trade only executes if the price drops to that level or below. You can also set the order to expire at the end of the day or remain open for a longer period.

Review your order details — the security, number of shares, price, and total cost — then submit it. If it is a market order during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays), it usually fills within seconds. Limit orders may take hours or days to fill, or may not fill at all if the price never reaches your target.

Selling Investments and Managing Your Portfolio

To sell an investment you own, go to your holdings or positions screen. This shows every stock, ETF, or fund you currently own, the number of shares, the price you paid, and the current value. Click on the holding you want to sell and choose "sell" or "close position."

Enter the number of shares you want to sell (you can sell all of them or just some). Choose your order type — market or limit — the same way you would for a buy order. Review the details and submit. When the order fills, the cash from the sale goes into your account balance and is available to reinvest or withdraw.

E*TRADE tracks your cost basis (what you originally paid) and calculates your gain or loss automatically. This information appears on your account statements and is useful for tax purposes, especially if you need to report capital gains or losses.

Using Research Tools and Market Data

E*TRADE provides real-time stock prices, charts, and news within the platform. When you search for a security, you can view its price history over different time periods, read analyst reports, and see recent news headlines. This information is built into the platform and does not require a separate subscription.

The platform also offers screeners — tools that let you filter stocks or ETFs by criteria like price, dividend yield, or market cap. You can save your favorite securities to a watchlist so you can monitor them without owning them. These tools are meant to help you research before you trade, but they do not make trading decisions for you.

Understanding Fees and Commissions

E*TRADE charges no commission on stock and ETF trades. This means you pay nothing to buy or sell a stock or exchange-traded fund. However, other fees may apply depending on your account type and activity. Mutual funds may have transaction fees. Margin accounts (where you borrow money to invest) charge interest on the borrowed amount. Inactive accounts or accounts below a minimum balance may have monthly fees.

When you place a trade, E*TRADE shows you the total cost or proceeds before you submit the order, so you know exactly what you will pay or receive. Always review this information before confirming.

Monitoring Your Account and Viewing Performance

Your account dashboard shows your total account value, cash balance, and the current value of each holding. You can view your account in different ways: by holdings (what you own), by performance (which investments are up or down), or by asset allocation (how much of your money is in stocks versus bonds versus cash).

E*TRADE provides statements and tax documents. Monthly statements show all your trades, deposits, withdrawals, and fees. At the end of the year, you receive a 1099 form that reports your capital gains, dividends, and interest — information you need for your tax return. You can download these documents from your account at any time.

Frequently Asked Questions

What is the difference between a market order and a limit order?

A market order buys or sells immediately at the current price. A limit order lets you set a specific price and only executes if the market reaches that price. Market orders fill faster but at an unpredictable price. Limit orders give you price control but may not fill at all.

Can I trade outside of market hours?

E*TRADE offers extended-hours trading (before 9:30 a.m. and after 4 p.m. Eastern time), but volume is lower and prices can be more volatile. Most traders use regular market hours. Check E*TRADE's website for the exact times extended trading is available.

How long does it take for my deposit to show up in my account?

Electronic transfers from a linked bank account usually take three to five business days. Wire transfers are faster, often one business day, but may involve a fee from your bank. E*TRADE will confirm the expected arrival date when you initiate the transfer.

What happens if I sell a stock at a loss?

The sale goes through normally. The proceeds (the money you receive) go into your cash balance. You can report the loss on your tax return, which may reduce your taxable income. E*TRADE tracks your cost basis and gain or loss automatically for your records.

Do I need to pay taxes on dividends or interest?

Yes. Dividends and interest are taxable income in the year you receive them. E*TRADE reports this information on your year-end 1099 form. You report it on your tax return, even if you reinvest the money into more shares.