Introduction
Etrade is an online brokerage platform that allows investors to buy and sell stocks, bonds, and other financial instruments. One of the key factors that investors consider when choosing a brokerage platform is the cost of trading. In this article, we will explore how much it costs to buy stock on Etrade and what factors can influence the cost.
Trade Commission Fees
Etrade charges a trade commission fee of $6.95 per trade. This fee applies to both stock and options trades. However, Etrade offers discounted trade commission fees for frequent traders or investors with high account balances. Traders who make more than 30 trades per quarter or have an account balance of $250,000 or more can enjoy a discounted trade commission fee of $4.95 per trade.
Options Contract Fees
In addition to the trade commission fee, Etrade also charges an options contract fee of $0.75 per contract. This fee applies to both buying and selling options contracts. However, like the trade commission fee, Etrade also offers discounted options contract fees for frequent traders or investors with high account balances. Traders who make more than 30 options trades per quarter or have an account balance of $250,000 or more can enjoy a discounted options contract fee of $0.50 per contract.
Other Fees
Apart from the trade commission and options contract fees, Etrade also charges other fees such as account maintenance fees, wire transfer fees, and account transfer fees. However, many of these fees can be waived or reduced based on certain criteria. For example, Etrade waives the account maintenance fee for accounts with a balance of $10,000 or more.
Factors that Influence the Cost of Buying Stock on Etrade
The cost of buying stock on Etrade can be influenced by several factors such as the size of the trade, the type of order, and the market conditions. Larger trades may attract higher trade commission fees, while market orders may attract higher options contract fees. In addition, volatile market conditions may result in wider bid-ask spreads, which can increase the cost of trading.
Using Etrade’s Tools to Minimize Trading Costs
Etrade offers several tools and resources that can help investors minimize their trading costs. For example, Etrade’s options analyzer can help investors identify options strategies that minimize costs and maximize returns. Etrade’s market data and research tools can also help investors make informed trading decisions that minimize costs.
Comparing Etrade’s Costs to Other Brokerage Platforms
When choosing a brokerage platform, it is important to compare the costs of different platforms. Etrade’s trade commission fee of $6.95 per trade is higher than some other brokerage platforms such as Robinhood, which offers commission-free trading. However, Etrade’s options contract fee of $0.75 per contract is lower than some other brokerage platforms such as TD Ameritrade, which charges $0.65 per contract.
Conclusion
In summary, Etrade charges a trade commission fee of $6.95 per trade and an options contract fee of $0.75 per contract. However, frequent traders or investors with high account balances can enjoy discounted trade commission and options contract fees. Other fees such as account maintenance fees can be waived or reduced based on certain criteria. The cost of buying stock on Etrade can be influenced by several factors such as the size of the trade, the type of order, and the market conditions. Etrade offers several tools and resources that can help investors minimize their trading costs. When choosing a brokerage platform, it is important to compare the costs of different platforms.
