Introduction
Etrade has been around since 1982 and is one of the most well-known online brokerage firms. However, with so many scams and fraudulent activities happening in the financial world, it’s only natural to wonder if Etrade is legit. In this article, we’ll explore Etrade’s legitimacy in 2023.
History of Etrade
Etrade was founded in 1982 and became one of the first companies to offer online trading in 1991. Since then, it has grown to become one of the largest online brokerage firms, with over 5 million accounts and $500 billion in assets.
Regulation and Licenses
Etrade is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It also holds licenses from various state regulatory agencies. This means that Etrade is held to strict standards and must follow regulations to ensure the safety and security of its clients’ investments.
Security Measures
Etrade takes security very seriously and has implemented several measures to protect its clients’ accounts. These measures include two-factor authentication, SSL encryption, and fraud detection software. Additionally, Etrade offers a Security Center on its website to educate clients on how to protect their accounts.
Customer Service
Etrade has received mixed reviews in terms of customer service. While some clients have reported positive experiences, others have reported long wait times and unhelpful representatives. However, Etrade does offer a variety of customer service options, including phone, email, and live chat.
Pros of Using Etrade
There are several benefits to using Etrade as your online brokerage firm:
Low Fees
Etrade’s fees are competitive with other online brokerage firms, making it an affordable option for investors.
Investment Options
Etrade offers a wide range of investment options, including stocks, bonds, options, and mutual funds.
User-Friendly Platform
Etrade’s platform is easy to navigate, making it a good option for beginner investors.
Cons of Using Etrade
While Etrade has many benefits, there are a few drawbacks to consider:
Customer Service
As mentioned earlier, Etrade’s customer service can be hit or miss.
Minimum Balance Requirement
Etrade requires a minimum balance of $500 to open an account, which may be a barrier for some investors.
Conclusion
Overall, Etrade is a legitimate online brokerage firm with a long history and strong regulatory oversight. While it may not be perfect, it offers competitive fees, a wide range of investment options, and a user-friendly platform. As with any investment, it’s important to do your own research and make an informed decision before opening an account with Etrade.
