E*Trade earns praise from reviewers primarily for its research amenities and banking services. Costs are on the high side; unless you make 150 or more trades per quarter you'll pay $9.99 per trade. There is also a $40 maintenance fee for each quarter in which you don't make at least one trade (IRA and custodial accounts are exempt). If you want a low-cost broker and don't want banking services, reviewers suggest that TradeKing could be a better choice.
SmartMoney magazine, Barron's, and Kiplinger.com all mention E*Trade in their reviews. ConsumerReports.org includes this online broker in a ratings chart based on feedback from online subscribers, and Keynote Systems includes it in its weekly ratings of 13 brokers based on their order execution. Stockbrokers.com, StockTradingToGo.com and TopTenReviews.com also review E*Trade.
Our Sources
1. SmartMoney.comDetails/Subscribe
This annual broker survey names the best online broker in each of six categories; a chart at the end ranks the 17 brokers included in the survey and shows their category ratings. E*Trade is ranked second of the 17 overall, and is tied with Fidelity for the top ranking in the category of banking services.
Review: SmartMoney's 2009 Broker Survey, Roya Wolverson and Neil Parmar, May 19, 2009
2. Barron's
Barron's 2010 ranking of 22 online brokers puts E*Trade eleventh overall, with higher marks for its research and analysis tools and the general usability of its website, and lower ones for its costs and trading technology and the usability of its website.
Review: Newest Trading Play: Screen Savings, Theresa W. Carey, March 10, 2010
3. ConsumerReports.orgDetails/Subscribe
A ConsumerReports.org ratings chart ranks 17 brokerage firms based on a survey of almost 9,000 online subscribers. Respondents rated brokers on account service, website, phone service and in-person service.
Review: Brokerage Service Brokerage Service Ratings, Editors of ConsumerReports.org, May 2009
4. Kiplinger.comDetails/Subscribe
Kiplinger.com doesn't provide detailed ratings or reviews here. However, it pronounces E*Trade "solid in all areas."
Review: The Best of the Online Brokers for 2011, Elizabeth Ody, Feb. 2011
TopTenReviews.com examines 18 brokers and summarizes data about them, as well as the ratings they receive from the site's editor, in a comparison chart. E*Trade is ranked sixth of the 18; the review concludes that "if you keep a high balance and do more than 150 trades per quarter E*Trade may be a good fit for you."
Review: E*Trade Financial, Editors of TopTenReviews.com
This review site ranks E*Trade at the top of its chart. The editors write, "While E*TRADE may not have the cheapest trades, the broker provides a fantastic platform and a slew of research tools that will satisfy both casual and active investors."
Review: Review of E*Trade, Editors of Stockbrokers.com
Site owner Blain Reinkensmeyer rates E*Trade number one of the five best online brokers. There is no real review, just a list.
Review: 5 Top Online Stock Brokers, Blain Reinkensmeyer
Keynote Systems tracks and rates online brokers on a weekly basis based how long it takes to place a stock order and the success rate of order completion. E*Trade is consistently near the top in these ratings. For the week beginning Jan. 31, 2011 E*Trade is in second place in both categories.
Review: Business Transaction Index for Brokerage Web Sites, Editors of Keynote Systems, Inc.
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