Stocks To Trade
Sep. 5, 202316 min read

Is E-Trade Good for Day Trading – E-Trade Broker Review

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Written by Tim Bohen

Is E-Trade good for day trading? The broker offers a plethora of avenues to trade or invest different assets. A lot of customers rely on the platform to move money within the market.

But the question is … does E-Trade fit for YOUR trading goals?

And it’s a good question.

Most people sign up with Robinhood because it’s easy and they give you a free stock … 

But we’ve seen Robinhood cause issues for traders in the past. At best, it’s a sketchy company that preys on customers with hidden tactics.

But is E-Trade any better?

Don’t worry, I can show you the hidden traps and pitfalls of this market.

I’ve got more than a decade of experience in the market. And every trading day I go live TWICE to bring traders the hottest plays in our niche.

Click here to sign up for a webinar.

Here’s my point: If you’re looking for the best broker for your strategy, you came to the right place.

Let’s analyze if E-Trade can operate for day traders … 

What Is Day Trading?

Day trading is a strategy used to pull quick profits from volatile stocks. Most day trades are made intraday and positions aren’t typically held overnight.

But day trading isn’t merely about buying and selling stocks within a day, it’s a precise, calculated way of making small gains that can add up over time.

It’s not investing, it’s about trading patterns, about seizing opportunities when they appear. This is your playing field, this is where you need real-time data, precise tools, and the support of a platform that understands your needs.

Day trading requires a blend of strategies, precision, and the right information. It’s not just about having a margin account, it’s about having a platform that offers you the charts, research, and real-time quotes you need.

Your trades are not mere transactions, they’re decisions made with the support of a platform that stands with you. It’s not just trading, it’s a way of life.

Why Use E-Trade for Day Trading?

Why E-Trade? Is it just another broker in the vast sea of online trading platforms? No. E-Trade has been in this game for years, offering features that cater to day traders.

But it’s normal to wonder whether E-Trade is beneficial for day trading. Or whether it provides efficient tools for day trading.

Pay attention to the Power E-Trade platform, the variety of tools, and the way they structure the data and information to help you make informed decisions.

But why listen to another generic review? Let’s talk facts. Let’s talk about what’s inside the platform, the factors that make it different, and the experience it offers.

From real-time quotes to advanced charting tools, E-Trade is not just a platform, it’s a trading companion that understands the needs of a day trader. It’s a relationship traders have with this market.

Advantages of Day Trading with E-Trade

For many investors, the appeal of E-Trade lies in its wide selection of services and products. As a member of the trading world under Morgan Stanley, the company offers a plethora of securities, including bonds and futures, to cater to different trading purposes.

The addition of Power E-Trade to its trading platforms expands the selection, giving traders the ability to execute complex orders efficiently.

It has restricted hours during the trading day, but day traders use the market’s time restrictions to build and surf hype.

Customers rave about E-Trade in reviews, highlighting the diversity of its offerings, from individual brokerage accounts to IRAs.

It compares favorably to well-known investment companies like Fidelity, Vanguard, and TD Ameritrade, head and shoulders above former discount peers like Scottrade (which it now owns) and TradeKing.

With the addition of many credit and banking services, E-Trade sets itself apart by catering to both the investment and financial needs of traders.

E-Trade offers many advantages for day traders, but it’s wise to consider other platforms that suit your trading style. Ameritrade is known for its robust tools and user-friendly interface, making it a viable option for many day traders.

Understanding the features and benefits of different platforms allows you to tailor your trading experience to your unique needs. Explore how TD Ameritrade can be utilized for day trading and compare it with E-Trade to find the best fit for you.

Low-Cost Trading Opportunities

Low-cost trading isn’t merely about saving money, it’s about keeping more of your hard-earned profits.

This section highlights whether E-Trade offers low-cost trading opportunities in our niche … 

With E-Trade, you’ve got access to competitive commissions and a fee structure that makes sense for day traders. It’s about trading stocks, ETFs, and options without losing a chunk of your gains to high fees.

You could say the platform facilitates advanced trading strategies without charging much.

In that way, it definitely suits the needs of day traders.

But it’s not just about numbers, it’s about understanding what low cost means to you as a trader.

Real-Time Quotes and Market Commentary

When you’re in the world of day trading, real-time quotes aren’t a feature, they’re a necessity. With E-Trade, it’s not just about numbers on a screen, it’s about insights, market commentary, and information that empowers your trades.

This isn’t about mere data, it’s about content that fuels your decisions, about having the market’s pulse at your fingertips.

The Ease of Pattern Day Trading Rules for Active Traders

Pattern day trading rules can be a maze, but with E-Trade, it’s a clear path. It’s about understanding FINRA regulations, the margins, and how they all align with your trading strategies.

It’s not just about compliance, it’s about trading the way you want to, within the boundaries of the law.

iOS and Android Mobile Apps

Mobile trading isn’t just a feature, it’s the way of the modern trader. With E-Trade’s iOS and Android apps, it’s not just about trading on the go. It’s about having all the features, charts, tools, and research in the palm of your hand.

This isn’t just a mobile version; it’s a trading platform that travels with you.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers.

I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.

And unlike free chart services, StocksToTrade supports active traders with real-time quotes.

Grab your 14-day StocksToTrade trial today — it’s only $7!

After a little tutorial, you’ll see it has a user-friendly interface for day trading.

Phone, Email, and Chat Support

Support isn’t just about customer service; it’s about having someone who understands your trading needs.

Your broker is also the organization that handles pattern day trading rules for active traders. That pertains to any margin account with less than $25,000 in it.

With E-Trade, you’ve got phone, email, and chat support, but it’s more than that. It’s about getting answers, getting help when you need it, from people who understand trading.

It’s not just a call center, it’s a trading support system.

That can be advantageous for beginners in day trading.

No Account Minimum Required

No minimum account requirement isn’t merely a feature, it’s an invitation to all traders, regardless of the amount they want to start with.

It offers competitive pricing for day trading because most other brokers don’t have account minimums either. It’s similar across the industry.

It’s about inclusivity, about making trading accessible. This isn’t just a policy; it’s a statement, a way to welcome traders from all walks of life.

Disadvantages of Day Trading with E-Trade

While there’s a lot to praise, E-Trade isn’t free from criticism.

Some customers have raised concerns about the share price of certain products, and the selection, while broad, may not meet the specific needs of every trader.

E-Trade allows access to U.S.-listed stocks and ETFs for day trading but traders from other countries may have difficulty finding certain assets.

It is efficient for executing trades in the U.S. stock market. Keep that in mind.

Also, despite offering bonds, the variety in this area could be improved, and the lack of focus on futures trading may deter some traders.

In addition to these limitations, the company’s connection to Morgan Stanley has led to mixed reviews from those concerned with how the merger impacts their portfolios.

Furthermore, while losses are a part of trading, the platform’s results and credit services may not align with every trader’s strategies, leading some to look elsewhere.

While E-Trade offers many brokerage accounts, traders who primarily use platforms like Scottrade, TradeKing, or even well-known names like Fidelity, Vanguard, and TD might find E-Trade’s watchlist and order system less intuitive.

Limited Options Trades and Mutual Funds

It’s not all roses. The limited options trades and mutual funds could be a stumbling block for some. It’s not just about having a platform, it’s about having one that fits your trading needs. 

This limitation isn’t just a line in the contract, it’s something to consider, something to weigh against your trading strategies.

High Fees for Penny Stocks, Options Trades, and Mutual Funds

High fees for penny stocks, options trades, and mutual funds aren’t just numbers, they could be obstacles.

In all seriousness, the fees might limit options trades and mutual funds for day traders.

I don’t know anyone trading mutual funds … but regardless, a trader’s upfront cost is always important to control.

It’s about understanding how these fees align with your trading patterns, and how they could impact your bottom line. This isn’t just a cost, it’s something to understand, something to factor into your trading decisions.

Penny stocks have become a popular topic among traders, especially on platforms like Reddit. 

Bust most people don’t talk about how some brokers could have high fees for penny stocks.

Engaging with penny stocks requires a keen understanding of the market and the ability to navigate potential high fees. If you’re interested in exploring this exciting yet challenging world, it’s crucial to have the right information at your fingertips.

Learn more about the dynamics of penny stocks on Reddit and how to approach them with caution and strategy.

Limited Trading in Foreign Markets

Limited trading in foreign markets is not just a policy, it’s a limitation. If your strategies include trading across different markets, this might be a barrier.

It might surprise you to hear that E-Trade does not offer commission-free trading for foreign stocks. It depends on your desired asset.

It’s not just about a line in the terms and conditions, it’s about aligning your trading strategies with what the platform offers. It’s about making choices.

Is E-Trade Good for Beginners?

Is E-Trade good for beginners? It’s not just a question, it’s a whole exploration. With features like Power E-Trade, a variety of research tools, and educational content, E-Trade isn’t just a platform for the experienced trader.

It’s about learning the ropes, understanding trading, and growing. This isn’t just a platform; it’s a learning curve, an opportunity.

But it’s not just about features; it’s about how they all come together. It’s about the ease of use, the accessibility, the way it makes trading approachable

From the account creation to the first trade, E-Trade is not just another broker; it’s a stepping stone for the beginner.

Is E-Trade Good for Experienced Day Traders?

But what about the experienced traders? Is E-Trade merely a beginner’s platform? No.

It’s about the advanced tools, the charts, and the trading platforms that cater to the needs of an experienced trader. It’s not just a broker; it’s a companion that knows the game.

It even features comprehensive market commentary for day traders. Although I’d argue that StocksToTrade does a better job … 

From complex options strategies to in-depth market analysis, E-Trade offers more than just a trading account; it’s a powerhouse for the seasoned trader.

It’s not just about the features; it’s about how they’re tailored.

Yes, it could be a preferred platform for day traders. But it depends on your strategy.

The Power E-Trade platform, the variety of research tools, and real-time data aren’t just add-ons; they’re built for the experienced trader. This isn’t just about trading; it’s about trading at a higher level.

Who Is E-Trade Best Suited For?

E-Trade isn’t just a one-size-fits-all platform; it’s a broker that caters to a spectrum of traders. 

From the beginner who needs guidance to the experienced trader seeking advanced tools, E-Trade offers a range that accommodates. But it’s more than just tools and accounts, it’s about understanding your trading style, your needs, and your goals.

For those trading stocks, ETFs, or options, and looking for robust charting tools, E-Trade might be the answer. But it’s not just about ticking boxes, it’s about aligning your trading strategies with what E-Trade offers. It’s about making a choice that fits your trading world.

Some would say that it is one of the best brokers and platforms for day traders. But … 

While E-Trade caters to a wide range of traders, it’s essential to explore other platforms that might align with your specific needs. Charles Schwab is another reputable broker that offers various tools and resources for day trading.

Whether you’re a beginner or an experienced trader, understanding the differences between platforms can help you make an informed decision. Discover how Charles Schwab can be an option for day trading and see if it aligns with your trading strategies.

Key Takeaways

E-Trade is more than just another broker in the crowded online trading platforms space. It’s a platform that offers a mix of features catering to both new and experienced traders.

But it’s not just about the offerings, it’s about how they align with your trading strategies, your goals, and your way of trading.

From low-cost trading opportunities to real-time quotes and market commentary, from robust mobile apps to support that understands trading, E-Trade has a lot to offer.

But it also has limitations, especially when it comes to certain fees and foreign market trading. This isn’t just a review; it’s a guide to making informed decisions.

There are a ton of ways to build trading careers… But all of them start with the basics.

That’s what I start with every day in my Daily Income Trader program. 

Daily Income Trader gives you access to all of the following:

  • Premarket Prep with StocksToTrade lead trainer Tim Bohen
  • Bryce Tuohey from Small Cap Rockets giving a market-open webinar each day
  • Tim Bohen back at noon with his afternoon Double Down review
  • Small Cap Rockets’ Matt Monaco in the after-hours sharing his game plan for the next trading day

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Have you used E-Trade for day trading? Let me know in the comments!

Frequently Asked Questions

Can You Day Trade on E-Trade Without a Broker?

No, you can’t day trade on E-Trade without a broker, because E-Trade is itself a brokerage platform.

It provides the structure, the tools, and the account needed for day trading. This isn’t just an online platform; it’s a complete trading environment, offering everything from the trading account to the support and tools you need.

What Are the Initial and Maintenance Margins for E-Trade?

E-Trade offers margin trading, and the initial and maintenance margins are aligned with FINRA regulations. But it’s not just about numbers; it’s about understanding how margins work, and how they align with your trading strategies.

It’s about trading with leverage responsibly, knowing the rules, and making informed decisions.

How Does E-Trade Handle Extended Hours Trading?

Extended hours trading is part of the E-Trade experience.

They provide access to pre- and post-market trading sessions, allowing you to trade outside standard market hours. But it’s not just about access, it’s about understanding how extended hours trading works, the risks involved, and how it fits into your trading strategies.

Does E-Trade Charge for Day Trading?

No, E-Trade doesn’t charge specifically for day trading, but the regular commissions and fees apply.

It’s about understanding the fee structure, knowing what applies to your trades, and how it impacts your profits. It’s not just a cost; it’s a factor in your trading decisions.

And remember that rules can change based on the asset and different markets. If a trader wants to switch strategies and focus on long-term gains, E-Trade provides a full range of investments as well.

How Much Interest Does E-Trade Pay?

E-Trade’s interest on cash balances depends on the account type and the amount held.

But it’s more than just a rate; it’s about understanding how it fits into your overall trading and investment strategy. It’s not just a number; it’s a part of your financial planning.