At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About E*TRADE
E*TRADE was acquired by Morgan Stanley in October 2020 for $13 billion, making it the brokerage arm of the world's largest wealth management firm by advisor count. The combination is unusual: E*TRADE serves self-directed retail investors with $0 commissions and digital-first tools, while Morgan Stanley's traditional wealth management serves high-net-worth clients with dedicated advisors charging 1%+ in fees. Morgan Stanley has been slowly integrating the two, offering E*TRADE clients a pathway into Morgan Stanley advisory services as their assets grow. For an E*TRADE user with $250,000+, the offer to connect with a Morgan Stanley advisor is a genuine upgrade path that no other discount broker can match. The Power E*TRADE platform is where E*TRADE distinguishes itself from Schwab and Fidelity. The options trading interface -- with strategy screeners, risk/reward visualizations, probability calculators, and one-click multi-leg order entry -- is among the best in retail brokerage. Options commissions are $0 base + $0.65 per contract (dropping to $0.50 at 30+ trades per quarter), which is competitive with Schwab and slightly cheaper than Fidelity's flat $0.65. The web-based Power E*TRADE runs in a browser without downloads, which is an advantage over thinkorswim's desktop-dependent setup. For options traders who want strong tools without installing software, Power E*TRADE is the best choice. The Morgan Stanley connection also brings access to Morgan Stanley research and IPO allocations. E*TRADE clients with $250,000+ can participate in IPOs through Morgan Stanley's underwriting business -- a legitimate advantage since Morgan Stanley is one of the top 3 IPO underwriters globally. Below that threshold, E*TRADE is a solid but unremarkable broker competing head-to-head with Schwab and Fidelity on features and price.
Key Features
Power E*TRADE (Web-Based Trading Platform)
Power E*TRADE is a browser-based trading platform with advanced charting, real-time streaming quotes, options strategy chains, and integrated CNBC video. For options traders, the strategy optimizer tool suggests optimal strategies based on your market outlook (bullish, bearish, neutral) and risk tolerance. The platform runs in any modern browser without downloads, making it accessible from any computer. It is generally considered the second-best options platform after thinkorswim.
Morgan Stanley Research Access
E*TRADE clients get access to Morgan Stanley equity research reports, which are among the most respected on Wall Street. These reports include analyst price targets, earnings estimates, and sector analysis. Previously, Morgan Stanley research required a wealth management relationship or institutional subscription. Getting this research free through a $0-minimum brokerage account is significant for fundamental investors.
IPO Access ($250K+ Accounts)
E*TRADE clients with $250,000+ in assets can request shares in IPOs underwritten by Morgan Stanley. This is real IPO allocation, not the post-listing "IPO access" that platforms like Robinhood offer. Morgan Stanley is a top-3 IPO underwriter, so the quality and quantity of offerings is substantial. Allocations are not guaranteed and are distributed based on account size and trading activity.
Managed Portfolios and Advisory
E*TRADE offers Core Portfolios (robo-advisor) at 0.30% annually with a $500 minimum, and Blend Portfolios that combine automated management with access to a financial advisor. The Morgan Stanley integration means E*TRADE's advisory pathway now extends from $500 automated accounts to multi-million-dollar Morgan Stanley private wealth management.
How It Works
Open an Account
Online application takes under 10 minutes. $0 minimum for brokerage and IRA accounts. You can open individual, joint, IRA, custodial, and trust accounts.
Fund Your Account
ACH transfer (free, 1-3 business days), wire ($0 incoming, $25 outgoing), or ACAT transfer from another broker (free, 5-7 business days). E*TRADE often runs transfer bonus promotions for new accounts above $10,000.
Access Power E*TRADE
Navigate to the Power E*TRADE platform from your account dashboard. Familiarize yourself with the options chain layout, strategy builder, and risk analyzer before placing trades. The learning curve is moderate -- less steep than thinkorswim but more complex than Robinhood.
Explore Morgan Stanley Research
Access analyst reports through the Research tab. Filter by sector, rating (overweight, equal-weight, underweight), and price target. These reports are updated regularly and provide institutional-quality analysis that most retail investors do not typically access.
Consider Core Portfolios for Passive Investing
If you prefer automated management, Core Portfolios builds and rebalances a diversified ETF portfolio for 0.30% annually. The minimum is $500. For self-directed investors, this is best used alongside active accounts -- keep your active trading in a standard brokerage while parking long-term savings in Core Portfolios.
What They Do
- Stock & ETF Trading ($0)
- Options Trading ($0.65/contract)
- Mutual Funds
- Fixed Income
- Futures Trading
- Core Portfolios (Robo)
- Managed Accounts
- Banking
- Morgan Stanley Research
- IPO Access
Debt Types They Take On
- Individual Brokerage
- Joint
- Traditional IRA
- Roth IRA
- SEP IRA
- Rollover IRA
- Custodial
- Trust
- Corporate
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Options Trading on Power E*TRADE
An intermediate options trader previously using Robinhood switched to E*TRADE for the Power E*TRADE platform. The trader primarily sold covered calls and cash-secured puts on blue-chip stocks, executing 8-12 options trades per month.
Morgan Stanley Research for Stock Selection
A buy-and-hold investor used Morgan Stanley analyst reports (available free through E*TRADE) to screen for undervalued stocks. The investor focused on "overweight" ratings with target prices 20%+ above current trading prices, filtering by sector.
E*TRADE to Morgan Stanley Advisory Transition
A self-directed investor who grew their E*TRADE account to $350,000 accepted the invitation to connect with a Morgan Stanley financial advisor. The investor wanted help with retirement distribution planning, Roth conversion strategy, and estate planning that exceeded their DIY comfort level.
Pros & Cons
Pros
- Power E*TRADE is a best-in-class web-based options platform -- no software download required, unlike thinkorswim's desktop dependency
- Morgan Stanley research reports are free for all E*TRADE clients -- institutional-quality analysis that competitors charge $500+/year to access
- IPO access through Morgan Stanley for $250K+ accounts -- real allocations from a top-3 underwriter, not the post-listing purchases other platforms offer
- Options pricing drops to $0.50/contract at 30+ trades per quarter, competitive with any major broker
- Clear upgrade path from self-directed E*TRADE to Morgan Stanley wealth management as assets grow
Cons
- No proprietary index funds at ultra-low expense ratios -- unlike Schwab (0.02%) and Fidelity (0.015%), E*TRADE relies on third-party funds
- Morgan Stanley integration is still a work in progress -- some features feel bolted on rather than natively integrated
- Core Portfolios at 0.30% is more expensive than Betterment (0.25%) and Wealthfront (0.25%) with fewer features
- Branch network is limited compared to Schwab (400+ locations) -- E*TRADE's physical presence has shrunk since the Morgan Stanley acquisition
User Reviews (9)
Solid broker
Been with E*TRADE for years. No complaints. The Morgan Stanley acquisition hasn't really changed my day to day experience which is fine.
IPO access is real
Got a small allocation in a biotech IPO through the Morgan Stanley connection. It was only 50 shares but still cool to get in at the offering price. Need over 250k in your account though.
Morgan Stanley research is a nice perk
Getting Morgan Stanley analyst reports for free is great. I used to pay for a research service. Now I just check what their analysts think before buying anything.
fine
It's a broker. Does broker things. No issues.
Best for options in a browser
If you don't want to download thinkorswim, Power E*TRADE is the answer. I run it on my work laptop during lunch. Fast, clean, everything I need for selling puts and calls.
Power E*TRADE is excellent
I trade options almost every week and Power E*TRADE is the best browser-based options platform I've used. The strategy builder and probability calculator save me time. Don't need to install anything.
No good index funds
Schwab has SWPPX at 0.02%. Fidelity has FXAIX at 0.015%. E*TRADE has... nothing comparable. Their mutual fund selection is fine but if you want rock-bottom index funds you need to go elsewhere.
Decent but Schwab has thinkorswim
I like E*TRADE but honestly Schwab having thinkorswim makes them hard to beat for active trading. Power E*TRADE is good but not quite at that level.
WEBSITE IS SLOW AND CRASHES
The E*TRADE website has been slow and buggy for months. Pages take forever to load. Got logged out in the middle of placing an order TWICE. For a company owned by Morgan Stanley there is no excuse for this. I've been a customer for 12 years and the website has gotten WORSE not better. Thinking about moving to Fidelity.
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Important Investing Disclaimers
- All investing involves risk, including loss of principal. Past performance does not guarantee future results. Returns and yields quoted are historical and not indicative of future performance.
- Brokerage accounts are not FDIC insured. Securities held in brokerage accounts are protected by SIPC up to $500,000 (including $250,000 for cash claims). SIPC does not protect against market losses.
- Robo-advisor and managed account performance depends on market conditions, asset allocation, and individual circumstances. Advertised returns reflect backtested or historical model performance and may not reflect actual client returns after fees.
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