E*TRADE charges no commission on stock and ETF trades

E*TRADE does not charge a per-trade commission when you buy or sell stocks or exchange-traded funds (ETFs). This means you can place as many stock or ETF trades as you want without paying a fee per transaction. The broker eliminated per-trade commissions in 2019, along with most other major brokers.

Options trades, however, work differently. E*TRADE charges $0.65 per contract for options trades. If you buy one options contract, you pay $0.65. If you buy ten contracts in a single order, you pay $6.50 total. This fee applies whether you are opening or closing a position.

Mutual funds have their own fee structure. E*TRADE offers thousands of mutual funds with no transaction fee, but some funds carry a transaction fee of $49.95 each. You can see which funds are no-transaction-fee funds before you buy.

Key Takeaways

  • Stock and ETF trades have zero commission, so you can trade as often as you want without paying per-transaction fees.
  • Options trades cost $0.65 per contract, charged once when you place the trade regardless of how many contracts are in the order.
  • Most mutual funds on E*TRADE carry no transaction fee, but some charge $49.95 per purchase.
  • E*TRADE makes money through other means: margin interest, cash management fees, and advisory services, not per-trade commissions.

What happens when you hold positions overnight or longer

Holding a stock or ETF position does not cost you anything beyond the commission you paid to buy it (which is zero). You can hold a position for days, months, or years without paying E*TRADE a holding fee.

If you borrow money to buy securities—called margin—E*TRADE charges interest on the borrowed amount. The interest rate varies based on how much you borrow and current market rates, but typically ranges from around 8% to 12% annually. This is not a per-trade cost; it is a cost of borrowing money, charged daily and added to your account monthly.

Options positions also do not carry a holding fee. You pay the $0.65 per contract only when you open or close the trade, not while you hold it.

Account fees and other costs to know about

E*TRADE does not charge a monthly account maintenance fee for standard brokerage accounts. However, some account types and services do carry fees. If you maintain a margin account and your account balance falls below certain thresholds, you may face inactivity fees, though E*TRADE's current policy is relatively lenient on this.

Wire transfers out of your account cost $25 per outgoing wire. Incoming wires are free. If you close your account within 12 months of opening it, E*TRADE charges a $100 account closure fee.

Cash held in your account earns interest through E*TRADE's cash management program. This is not a fee you pay—it is interest you earn—but the rate varies and is typically lower than what you would earn in a high-yield savings account elsewhere.

How E*TRADE makes money if there is no per-trade commission

When a broker stops charging per-trade commissions, it shifts revenue to other sources. E*TRADE generates income from margin interest (the interest you pay when you borrow to trade), from payment for order flow (money market makers pay to execute your trades), and from advisory services like E*TRADE Financial Consultants.

The broker also earns money when you hold cash in your account. E*TRADE lends out cash balances to other parties and keeps a portion of the interest earned. This is why the interest rate you receive on your cash is lower than the rate E*TRADE receives from lending it out.

If you use E*TRADE's robo-advisor service (called E*TRADE Core Portfolios), you pay an advisory fee of 0.30% annually on assets under management. This is separate from trading commissions and applies only if you use that service.

Comparing E*TRADE costs to other brokers

Most major brokers—Fidelity, Charles Schwab, Vanguard, TD Ameritrade, and others—also charge zero commission on stock and ETF trades. The options commission of $0.65 per contract is standard across the industry. Where brokers differ is in cash management rates, margin interest rates, and advisory fees.

Some brokers offer lower options commissions for high-volume traders. If you trade options frequently, it is worth comparing the per-contract cost across brokers. E*TRADE's $0.65 per contract is competitive but not the lowest available.

Brokers also differ in what they offer for free. E*TRADE includes research tools, educational content, and market data at no extra charge. Some competitors charge for premium research or data, while others include it. The total cost of using a broker depends on what you actually use, not just the per-trade fees.

Hidden costs: what to watch for

E*TRADE does not hide fees, but some costs are easy to miss. If you trade on margin, the interest compounds daily, so a small borrowed amount can grow into a significant cost over time. If you are new to margin trading, understand the interest rate before you borrow.

Mutual fund transaction fees apply only to certain funds. Before you buy a mutual fund, check whether it carries a $49.95 transaction fee. E*TRADE shows this clearly in the fund details, so you can avoid it if you choose.

If you use E*TRADE's advisory services or robo-advisor, those fees are separate from trading costs and are charged as a percentage of assets under management. Read the fee schedule for any service you sign up for, because these are ongoing costs, not one-time charges.

Frequently Asked Questions

Do I pay a fee every time I sell a stock?

No. E*TRADE charges zero commission on stock sales, just as it does on stock purchases. You can buy and sell as many times as you want without paying a per-transaction fee. The only exception is if you borrow money on margin to make the purchase; then you pay interest on the borrowed amount.

What is the difference between a commission and an options fee?

A commission is a fee per trade. An options fee is a fee per contract. When you buy one options contract, you pay $0.65. When you sell it, you pay $0.65 again. If you buy ten contracts in one order, you pay $6.50 total, not $0.65 per contract per trade.

Will E*TRADE charge me for holding a stock overnight?

No. You can hold a stock position indefinitely without paying a holding fee. The only cost is the commission you paid to buy it (zero on E*TRADE) and any margin interest if you borrowed money to buy it.

Are there any monthly fees for having an E*TRADE account?

E*TRADE does not charge a monthly account maintenance fee for standard brokerage accounts. However, if you close your account within 12 months of opening it, you will be charged a $100 closure fee. Wire transfers out of your account also cost $25 each.

Do I pay more to trade during market hours versus after hours?

No. E*TRADE charges the same zero commission on stocks and ETFs regardless of when you trade them. Options still cost $0.65 per contract whether you trade during regular hours or extended hours. The commission structure does not change based on timing.