Are you looking to invest in the stock market but not sure where to start? Have you heard of E*TRADE Stock but are unsure of what it is and how it can help you with your investments? Look no further, as we’ve got you covered!
In this blog, we’ll dive into the world of E*TRADE stock and show you how it can help you buy, sell, research, and monitor your investments. With its user-friendly trading platform and robust research tools, E*TRADE stock is an excellent option for both beginner and experienced investors.
We’ll guide you through the process of buying and selling investments on E*TRADE stock and show you how to use their research tools to make informed investment decisions. By the end of this blog, you’ll have a clear understanding of the benefits of using E*TRADE stock and how it can help you achieve your investment goals. So, let’s get started!
E*TRADE Stock
Since its establishment in 1982, E*TRADE has been at the forefront of the brokerage industry, continuously embracing innovation to bring about change across the industry.
In the early 1990s, E*TRADE stock leveraged the evolution and widespread adoption of the internet to build and enhance its online platform, solidifying its position as a dynamic, powerful trading service. In 2020, Morgan Stanley agreed to acquire E*TRADE stock for $13 billion.
E*TRADE’s platform caters to both new traders and sophisticated investors, providing an extensive range of trading features while remaining intuitive and user-friendly. Its research menu has become even more comprehensive, with analysis information from Morgan Stanley now available across all E8TRADE stock versions.
E*TRADE stock offers a wide variety of tools for all types of trading, including stock, options, futures, and more. Passive investors can benefit from pre-built portfolios and automated portfolio-building tools to help with strategy setup. However, the platform does not offer direct crypto exposure or international exchange trading.
E*TRADE stock has upgraded its educational content, providing even more resources for knowledgeable traders while also allowing new users to transition quickly from research to investing.
Investors can access E*TRADE stock through various platforms, including desktop, website, and two mobile app versions, with comprehensive trading options available on desktop and website platforms, while the mobile apps cater to investors of different experience levels and trading styles.
Types of Investments Available on E*TRADE
Stocks
E*TRADE offers a wide range of stocks for investors to choose from. This includes popular companies such as Apple, Amazon, and Tesla, as well as lesser-known companies in a variety of industries.
Options
E*trade stock options trading is a popular type of investment that give investors the right, but not the obligation, to buy or sell an underlying asset at a predetermined E*TRADE stock price. E*TRADE offers a variety of options, including equity options, index options, and ETF options.
Futures
Futures are contracts that allow investors to buy or sell an asset at a predetermined price at a future date. E*TRADE offers futures trading in a variety of asset classes, including commodities, currencies, and stock indices.
ETFs
ETFs, or exchange-traded funds, are investment funds that trade on stock exchanges like individual stocks. E*TRADE offers a wide range of ETFs, including index funds, bond funds, and sector-specific funds.
Mutual Funds
Mutual funds are investment funds that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. E*TRADE stock offers a variety of mutual funds from well-known fund companies such as Fidelity, Vanguard, and BlackRock.
Bonds & CDs
E*TRADE stock offers a range of fixed-income investments, including bonds and CDs. These investments can provide a reliable stream of income but typically have lower returns compared to stocks or other high-risk investments. E*TRADE stock offers a variety of bonds and CDs from different issuers, with varying maturity dates and interest rates.
A Step-by-Step Guide to Buying, Selling, and Researching Investments on E*TRADE Stock
Setting up an E*trade brokerage account is the first step to buying stocks, and it can be completed in around 15 minutes through E*TRADE Stock. After adding funds to the account, investors can select and invest in individual companies.
Although it may seem complicated initially, purchasing stocks is a relatively simple process. Here are four steps to guide you on how to buy stocks:
#1. Select an Online Stockbroker: E*TRADE
Buying stocks can be done conveniently through an online stockbroker after opening and funding your account. Other options include using a full-service stockbroker or buying stocks directly from the company.
The process of opening an online brokerage account is similar to setting up a bank account. You’ll need to complete an account application, provide identification proof, and choose whether to fund the account electronically or by mailing a check.
#2. Research the Stocks You Want to Buy
Once your brokerage account is set up and funded, you can begin researching companies you already know from your consumer experiences.
While conducting your research, don’t get overwhelmed by the influx of data and real-time market gyrations. Keep your objective simple by looking for companies that you want to own a part of.
According to Warren Buffet, buying into a company because you want to own it, not because you want the stock to go up, is crucial to success.
After identifying companies of interest, research them further by starting with their annual report and management’s annual letter to shareholders. This will give you a general idea of what’s happening with the business and provide context for the numbers in the report.
You can then use the analytical tools and information available on your broker’s website, such as SEC filings, conference call transcripts, quarterly earnings updates, and recent news to evaluate the business. Online brokers also offer tutorials and basic seminars on stock picking.
#3. Decide How Many Shares to Buy
Don’t feel pressured to buy a certain amount of shares or fill your portfolio all at once. Consider starting with paper trading or purchasing a single claim to get a feel for what it’s like to own individual stocks. You can add to your position over time as you gain more experience.
E*TRADE fractional shares are a relatively new offering from online brokers that allow you to buy a portion of a stock rather than the total share. This will enable investors to get into pricey stocks with a smaller investment. Brokers like SoFi Active Investing, Robinhood, and Charles Schwab offer fractional shares.
Many brokerages offer a tool that converts dollar amounts to shares. This can be helpful if you have a set amount you’d like to invest and want to know how many shares that amount could buy.
#4. Choose Your Stock Order Type
Don’t let the complicated language on your broker’s order page intimidate you.
Familiarize yourself with these key terms before buying stocks:
- Ask: The price sellers are willing to accept for the stock.
- Bid: The price buyers are willing to pay for the stock.
- Spread: The difference between the highest bid price and the lowest ask price.
- Market Order: A request to buy or sell a stock immediately at the best available price.
- Limit Order: A request to buy or sell a stock at a specific price or better.
- Stop (or Stop-Loss) Order: When a stock reaches a certain price, a market order is executed, and the entire order is filled at the prevailing price.
- Stop-Limit Order: When the stop price is reached, the trade turns into a limit order and is filled up to the point where specified price limits can be met.
Don’t worry about more complex trading moves or order types. Many investors have succeeded with just market orders and limit orders.
Market Orders
A market order is a type of stock trade where the investor buys or sells the stock at the best available price on the market. This means the order will be immediately executed and fully filled, with no price parameters on the trade.
However, the price paid may not be the exact same as the quoted price due to constant fluctuations in the bid and ask prices. Therefore, market orders are better suited for stocks that have more stable prices, such as significant, well-established blue-chip companies, rather than more volatile smaller companies.
Limit Orders
A limit order gives investors more control over the price at which their trade is executed. It sets a specific price at which you want to buy or sell a stock.
For example, if you believe a stock is overpriced at $100 per share and would prefer to buy at $95 per share, a limit order instructs your broker to buy only when the stock reaches $95 per share. Conversely, a limit order to sell sets a minimum price you’re willing to accept for the stock.
Limit orders work best for smaller company stocks, which tend to experience wider spreads, and when investing during periods of short-term stock market volatility. Different conditions can also be added to a limit order to determine how long it will remain open.
For instance, an all or none order will execute only when all the shares you wish to trade are available at your price limit. A good-for-day order expires at the end of the trading day, while a good till canceled order remains in play until the order expires or the customer cancels it.
Monitoring Investments With E*TRADE
E*TRADE stock offers investors a range of tools to monitor their investment performance, including real-time quotes, advanced charting, and customizable watchlists. In addition, users can view their portfolio’s performance over time and compare it to market benchmarks.
With E*TRADE stock, investors can set up personalized alerts and notifications for their investments. These alerts can be triggered by price changes, news events, or other criteria, helping investors stay informed and take prompt action when necessary.
E*TRADE also provides investors with a comprehensive view of their investment history and activity. This includes access to trade and dividend histories and account statements. This information can be used to track progress and make well-informed investment decisions.
Other Ways to Monitor Your Portfolio
#1. Track Your Investment With Personal Finance Apps
Various online budgeting tools are available to help you track your investments beyond E*TRADE stock. These tools can offer multiple features and benefits, such as real-time tracking, personalized alerts, and customized investment recommendations. Some popular examples of online budgeting tools include
Empower
Empower is a budgeting app that offers a powerful investment tracker, enabling users to create charts comparing their investment performance to a stock market index, monitor cryptocurrency investments, and use the “Investment Checkup” tool to compare their current asset allocation against their algorithm’s advice.
Stock Rover
Stock Rover is a specialized stock screener and investment analysis tool that provides detailed charting tools and research reports, compatible with over a thousand different brokerages, projecting future dividend income and offering data-backed Future Portfolio Performance Simulations to help investors plan their finances.
CountAbout
CountAbout is a budgeting and personal finance tool that offers a FIRE widget to help users plan for retirement by tracking monthly expenses, analyzing future finances, and calculating passive income potential from the size of their assets.
Mint
Mint is a budgeting app that tracks investment performance, providing graphs of investment performance, identifying best and worst performers, and tracking real estate investments.
SigFig
SigFig is a registered investment advisory service that offers free investment tracking and management services, providing automatic analysis and monitoring of investments and the option for automatic rebalancing and diversification.
Morningstar
Morningstar is a market and investing research and education platform that enables users to create online portfolios and use the “X-Ray” feature to see portfolio holdings broken down by underlying stocks within each fund while providing educational articles and expert advice.
Seeking Alpha
Seeking Alpha is an investing community that offers crowd-sourced content and a robust suite of stock analysis tools. Basic, Premium, and Pro subscription plans offer different levels of access to newsletters, stock charts, ratings, and content.
#2. DIY With Spreadsheets
If you prefer, you can also use Excel or Google Sheets to track your investments. While it may require more effort to set up initially, you have the benefit of complete customization.
Spreadsheets can also help with investment calculations and projections. You can use formulas to calculate dividend income or forecast investment projections over time. This is especially useful for those interested in financial independence and retiring early.
#3. Use Desktop Apps for Investment Tracking
You have the choice to utilize the software on your computer to monitor your portfolio. Several options are available, including the one mentioned earlier: Excel.
Quicken
Quicken is a powerful tool to track investments, linking to your brokerage account to download income and expenses and allowing you to track assets, dividends, and ROI.
Quicken stores data on your computer, ensuring safety, and provides the latest market prices and news headlines, helping you stay up to date on the market and make informed investment decisions. You can easily see portfolio fees to determine true rates of return.
QuickBooks
QuickBooks Pro isn’t designed for personal finance and doesn’t allow direct tracking of investments. Instead, you can track investments through an “asset account.” QuickBooks Online can track personal money used to pay business bills or fund a business by linking up a bank account.
#4. Start Using a Trading Journal
Keeping a trading journal is a useful tool for traders to track their trades, reasons for making them, and outcomes. It can be done manually with a simple binder or with more advanced software.
While trading journals are popular among forex traders, anyone in the stock or options market can benefit from using one.
A common misconception about trading journals is that they’re only for logging trades and profits. However, their purpose is to help traders improve by analyzing both successes and mistakes and learning from them.
The goal of a trading journal is not to give oneself a pat on the back but to become a better trader by learning from past actions and making informed decisions in the future.
Benefits of Using E*TRADE for Investing
E*TRADE Commissions
E*TRADE offers commission-free trading on US-listed stocks, mutual funds, ETFs, and options trades. While a standard fee of up to $0.65/contract is charged for options trades, this is still a significant cost saving compared to other brokers.
ETF and Mutual Fund Access
E*TRADE stock offers a range of ETFs and mutual funds, making it easy for passive investors to invest in a diversified portfolio. ETRADE’s ETF research, screening, and prebuilt portfolios simplify investing for beginners.
Managed Portfolios
E*TRADE stock offers four categories of managed portfolios that are professionally managed and constructed for investors at different stages of their investing journey. ETRADE’s robo-advisor, E*TRADE Core Portfolios, is particularly interesting, with a minimum investment of just $500.
IRA Investing
E*TRADE offers a variety of IRA accounts, including traditional IRAs, Roth IRAs, Rollover IRAs, Beneficiary IRAs, and IRAs for minors. This allows investors to take advantage of tax-deferred growth and potentially reduce their tax liability.
Trading Platform
E*TRADE stock’s trading platform is user-friendly and offers a range of tools and features for investors to use. Its free Power E*TRADE stock platform has a substantial fan base among options traders.
Branch Offices
E*TRADE stock has brick-and-mortar branch offices, which can be an additional avenue for customer support. While its branch network isn’t as robust as other brokers, 24/7 phone and online chat support is also available.
No Minimum Deposit
E*TRADE stock has no minimum deposit requirement for standard brokerage accounts or IRAs. This makes it easy for investors to start investing in E*TRADE stock without having to meet a minimum deposit requirement.
Banking Accounts
E*TRADE offers savings and checking accounts, allowing customers to manage many of their money needs in one place. While its rates may not be the highest, the convenience of having everything in one place can be beneficial for some investors.
E*TRADE Stock is Right for You if:
If you are considering opening an E*TRADE accocertain factors mayt may make it a good choice for you.
One of the reasons to consider E*TRADE stock is if you’re looking for a comprehensive platform that offers a wide range of investment options. Compared to many of its competitors, E*TRADE stock has a broad array of account and investment offerings that could make it a one-stop shop for investors.
Another advantage of E*TRADE is that it offers a large selection of no-load, no-transaction-fee mutual funds. With over 2,200 NTF mutual funds available, this could be a major selling point for buy-and-hold investors who want to create a diversified portfolio using free funds alone.
If you place a high value on the trading platform, then E*TRADE stock could be a good option. Both the Power E*TRADE platform and E*TRADE’s mobile platform have a lot of features compared to many competitors. Keep in mind that E*TRADE services are only available to U.S. residents.
Potential Drawbacks of Using E*TRADE
Limited Access to Certain Types of Investments
While E*TRADE stock offers a wide range of investment options, some investments are still unavailable on their platform. For example, ETRADE does not provide access to cryptocurrency or alternative assets like real estate.
Higher Fees for Certain Types of Accounts or Trades
While E*TRADE offers commission-free trading on many types of investments, fees can add up quickly for certain types of accounts or trades. For example, margin trading fees and broker-assisted trading fees can be higher than those of other brokers.
Potential for Technical Glitches or Platform Outages
Like any online platform, E*TRADE stock is not immune to technical glitches or platform outages. While these are rare, they can be frustrating for investors who rely on the platform for their investments. However, E*TRADE stock has a robust customer support system in place to help investors who encounter technical issues.
Bull, Sell, Research, and Monitor Your Investments Through E*TRADE Stock
E*TRADE stock is an excellent option for investing in the stock market. With its user-friendly platform, access to a wide range of investments, and robust research tools, it’s an ideal platform for beginners and experienced investors.
We’ve shown you how to buy and sell investments on E*TRADE stock and remember, investing can be a great way to grow your wealth, but it’s essential to research and understand the risks involved.
Overall, we highly recommend E*TRADE for its low fees, access to a wide range of investment options, and convenient mobile app for on-the-go investing. With the knowledge gained from this blog, you can confidently start investing and monitoring your investments with E*TRADE stock.
