E*TRADE Review for ETF Investors
E*TRADE pairs $0 ETF commissions with deep research and a polished platform, now backed by Morgan Stanley. Here's where it shines and where it falls short for ETF investors.
Don't have time? Here's what you need to know:
- 1E*TRADE is owned by Morgan Stanley and offers $0 commissions on online U.S.-listed ETF trades.
- 2Its standout strengths are research, education, and two apps — including Power E*TRADE for active traders.
- 3Fractional-share and recurring-investment features may trail best-in-class rivals; verify current support before relying on them.
- 4It's a strong all-around broker, but a cost-focused, pure buy-and-hold investor should compare it against the largest low-cost brokers.
E*TRADE in Brief
E*TRADE is one of the original online brokers, and since 2020 it has been owned by Morgan Stanley, which acquired it and folded it into the larger firm's wealth-management business. For ETF investors, the headline facts are simple: E*TRADE charges $0 commission on online U.S.-listed ETF and stock trades, offers a wide selection of funds, and provides genuinely strong research and education tools alongside a capable trading platform.
It sits in the middle of the spectrum between bare-bones free-trading apps and the largest full-service brokers. You get more research, education, and account types than a minimalist app, with a platform that's approachable for beginners but deep enough for more active investors.
Where E*TRADE Is Strong
E*TRADE's clearest strengths are its research and its platforms. The research tools, fund screeners, and educational content are well above what app-first brokers offer, which helps when you're comparing ETFs by expense ratio, holdings, and strategy. It also offers two distinct apps — a streamlined one for everyday investing and the more advanced Power E*TRADE for active traders — so the experience scales with your needs.
On the essentials, it covers the bases: $0 ETF commissions, a broad fund lineup, and the full range of retirement and brokerage account types, including IRAs. Being backed by Morgan Stanley adds institutional stability and integration with a broader wealth-management ecosystem, which some investors value.
- $0 commissions on online U.S.-listed ETF and stock trades.
- Strong research, screeners, and educational content for comparing funds.
- Two apps — a simple one and the advanced Power E*TRADE — covering beginners through active traders.
- Full range of account types, including traditional and Roth IRAs.
- Backed by Morgan Stanley for institutional scale and stability.
Where It Falls Short
No broker is perfect, and E*TRADE's trade-offs matter most to a certain kind of investor. Historically it has been less generous on fractional-share investing for ETFs than some rivals, which is a real consideration if buying exact dollar amounts of a fund is central to your plan — confirm current capabilities before relying on it. Its recurring-investment automation, while present, has not always been as flexible as the best-in-class offerings.
There's also a strategic question hanging over it. Because Morgan Stanley now owns E*TRADE, the product's direction is tied to a wealth-management parent whose priorities can shift over time. None of this makes E*TRADE a poor choice — it remains a solid, full-featured broker — but a cost-focused minimalist or someone who insists on best-in-class fractional and recurring tools might find a better fit elsewhere.
Important: Don't assume feature parity. Fractional-share and recurring-investment capabilities differ meaningfully between brokers and change over time. If those features are central to your strategy, verify E*TRADE's current support before committing.
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Who E*TRADE Is Best For
E*TRADE is a strong fit for the investor who wants more than a stripped-down app — someone who values research, education, and the option to grow into more active trading — without paying commissions on ETFs. If you like the idea of one platform that handles a simple core ETF portfolio today and supports more advanced tools later, it delivers that range well.
If your priority is the lowest possible cost with best-in-class fractional buys and recurring automation for a pure buy-and-hold ETF strategy, compare it carefully against the largest low-cost brokers, which lead on those specific features. As always, an ETF's own expense ratio and your saving discipline matter far more to your results than the choice between reputable brokers. Before deciding, it helps to know how to open a brokerage account and what to evaluate.
| Factor | E*TRADE |
|---|---|
| Owner | Morgan Stanley |
| ETF commissions | $0 on online U.S.-listed ETFs |
| Research & education | Strong |
| Apps | Standard app + Power E*TRADE for active traders |
| Account types | Brokerage, traditional IRA, Roth IRA, and more |
| Fractional / recurring | Available but verify current scope |
Frequently Asked Questions
Who owns E*TRADE?
E*TRADE is owned by Morgan Stanley, which acquired the broker in 2020 and integrated it into its larger wealth-management business. E*TRADE continues to operate under its own brand and platform, but its strategic direction is now tied to Morgan Stanley, which provides institutional scale and stability.
Does E*TRADE charge commissions on ETFs?
No. E*TRADE charges $0 commission on online U.S.-listed ETF and stock trades, in line with the other major brokers. You still pay each ETF's underlying expense ratio, which is set by the fund and applies at any broker, but there's no per-trade commission on standard online ETF orders.
Is E*TRADE good for beginners?
Yes, it's approachable for beginners while offering room to grow. Its standard app and strong educational content suit new investors, and the more advanced Power E*TRADE platform is there if you later want deeper trading tools. The main things to verify are its current fractional-share and recurring-investment capabilities if buying exact dollar amounts and automating purchases are central to your plan.
Is E*TRADE a good choice for a buy-and-hold ETF investor?
It can be. You get $0 ETF commissions, strong research, IRAs, and a stable Morgan Stanley parent. The caveats are that some rivals lead on fractional-share investing and recurring-investment flexibility, which matter for pure dollar-cost-averaging strategies. If those features are your top priority, compare E*TRADE against the largest low-cost brokers before deciding; otherwise it's a solid, full-featured option.
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Alex Harrington
CFA Level II Candidate, Finance & Economics
Alex Harrington is an independent ETF researcher and personal finance writer with over 8 years of experience analyzing exchange-traded funds. A CFA Level II candidate with a background in economics, Alex has reviewed 800+ ETFs and helped thousands of beginners build their first investment portfolios through clear, jargon-free education.
This content is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.