Is E*TRADE Good for Beginners? An Honest 2025 Review

Looking for your first online broker can feel overwhelming. With so many options out there, you might be wondering: is ETRADE good for beginners? As someone who’s spent countless hours reviewing investment platforms, I’ll break down everything you need to know about ETRADE for new investors in 2025.

The Short Answer

Yes, E*TRADE is generally good for beginners thanks to its educational resources user-friendly platforms, and strong customer support. However, it does have some limitations that might make other brokers better depending on your specific needs as a new investor.

E*TRADE at a Glance

Before diving deeper, here’s a quick overview of E*TRADE:

Why E*TRADE Works Well for Beginners

1. Robust Educational Resources

If you’re just starting out, E*TRADE really shines with its educational offerings:

• Webinars on everything from diversification to technical analysis
• Online investing courses covering a wide range of topics
• Thematic investing section that helps you align investments with your values
• Research from providers like Moody’s, Morgan Stanley, and Morningstar

For newbies who wanna learn while they invest, these resources are super valuable

2. User-Friendly Platforms

E*TRADE offers two main platforms

E*TRADE Web is perfect for beginners with:

• Clean interface with real-time quotes
• Stock and ETF screeners
• Market commentary
• Account management tools

Power E*TRADE is there when you’re ready to level up with:

• Advanced charting
• Technical studies
• Options strategy tools
• Trading ladders

Both are available at no extra cost to all customers regardless of account size or trading frequency.

3. Strong Mobile Experience

The E*TRADE mobile app lets you:

• Manage your account on the go
• Place trades easily
• Get real-time quotes and news
• Access Bloomberg TV
• Use stock screeners
• Execute multi-leg options trades (when you’re ready for that)

The app is available for iOS, Android, and even Apple Watch.

4. No Account Minimum

You can start with whatever amount you’re comfortable with—no minimum required. This is great for beginners who might want to start small.

5. Commission-Free Trading

With $0 commissions on stocks, ETFs, and options trades (though there’s still a per-contract fee for options), E*TRADE makes it affordable to start investing without worrying about trading costs eating into your returns.

6. Paper Trading Option

E*TRADE offers a paper trading platform where you can practice with $100,000 in virtual cash and $200,000 in margin buying power without risking real money. This is a fantastic way for beginners to get comfortable before putting actual dollars on the line.

Where E*TRADE Falls Short for Beginners

Despite its strengths, E*TRADE isn’t perfect for everyone just starting out:

1. No Fractional Shares

Unlike some competitors, E*TRADE doesn’t offer fractional shares for regular stock purchases (only through their automated investing program). This means you’ll need enough money to buy full shares, which can be limiting if you’re starting with a small amount and want to diversify.

2. Website Navigation Challenges

Our testers found that some important information (like how to close an account) was difficult to find on the website. For beginners who need clear, easy-to-find information, this can be frustrating.

3. Low Interest on Uninvested Cash

The interest rate on uninvested cash (0.01% to 0.15%) is among the lowest of all brokers reviewed by NerdWallet. If you’ll be keeping some cash in your account while learning, you might be missing out on better returns elsewhere.

4. No Cryptocurrency Trading

If you’re interested in crypto as part of your investment journey, you’ll need to look elsewhere as E*TRADE doesn’t offer cryptocurrency trading.

5. Not the Most Intuitive for Complete Newcomers

According to Alana Benson, a Senior Writer at NerdWallet who tested the app: “The app seems fairly standard — everything is there but it isn’t super intuitive unless you’re well-versed in investing terminology. After my verification went through and I had money in my account, I managed to buy stock, but there weren’t a ton of tips or educational components along the way.”

Who Should Choose E*TRADE as a Beginner?

E*TRADE is particularly well-suited for:

1. Beginners who want to learn and have access to extensive educational resources
2. New investors who plan to grow into more advanced trading (since the platform can scale with your experience)
3. People who value customer support (E*TRADE offers 24/7 phone support and live chat Monday through Friday)
4. Beginners interested in retirement accounts (they offer various IRA options with no fees)

Who Might Want to Look Elsewhere?

You might prefer another broker if you’re:

1. Starting with a very small amount and want to buy fractional shares
2. Looking for the absolute simplest interface with more guided onboarding
3. Wanting to earn more on your uninvested cash
4. Interested in cryptocurrency trading
5. Needing more hand-holding during the investment process

Getting Started with E*TRADE

If you decide E*TRADE is right for you, here’s how to get started:

1. Account setup: The process takes about 20 minutes online (despite E*TRADE claiming it takes just 10 minutes)
2. Account funding: You can transfer money from your bank, but be aware it can take up to 6 days to become available for investing
3. Select investments: Remember that just depositing money doesn’t mean you’re invested—you’ll need to actively select investments

My Personal Take

As someone who’s helped many friends get started with investing, I think E*TRADE hits a sweet spot for beginners who are somewhat serious about learning to invest. It’s not the absolute simplest platform out there, but the educational resources make up for the slightly steeper learning curve.

I particularly like that you can start with the basic platform and graduate to Power E*TRADE as you gain confidence—no need to switch brokers as you advance.

The paper trading feature is also a huge plus that not all brokers offer, and it’s invaluable for practicing before using real money.

Alternatives to Consider

If E*TRADE doesn’t seem like the perfect fit, here are some alternatives:

• Fidelity: Better interest rates on uninvested cash and offers fractional shares
• Charles Schwab: Higher NerdWallet rating (4.8/5) and excellent overall service
• Public: Offers fractional shares and a more social investing experience
• Coinbase: If cryptocurrency is important to you (4.6/5 rating)

Bottom Line: Is E*TRADE Good for Beginners?

E*TRADE is definitely a solid choice for beginners, especially those who:

• Are committed to learning about investing
• Value educational resources
• Want a platform they won’t outgrow as they advance
• Appreciate having strong customer support

However, if you’re looking for the absolute simplest experience or need fractional shares to start with small amounts, you might want to explore other options.

The 4.5/5 star rating from NerdWallet is well-deserved, reflecting E*TRADE’s strengths while acknowledging its few limitations. With $0 commission trades, no account minimums, and robust educational tools, it provides most of what beginners need to start their investing journey successfully.

Have you tried E*TRADE or other brokers as a beginner? I’d love to hear about your experience in the comments!

FAQs About E*TRADE for Beginners

Is there a minimum amount to start with E*TRADE?
No, E*TRADE has no account minimum. You can start with whatever amount you’re comfortable investing.

Does E*TRADE charge fees for beginners?
E*TRADE offers $0 commission trades for stocks, ETFs and options (though there’s a $0.65 per contract fee for options).

Can I get help if I’m confused about something?
Yes, E*TRADE offers 24/7 phone support and live chat Monday through Friday from 8:00 a.m. to 8:00 p.m. Eastern.

Will E*TRADE help me learn how to invest?
Absolutely! E*TRADE offers webinars, online courses, and thematic investing guides to help beginners learn the ropes.

Is my money safe with E*TRADE?
Yes, E*TRADE is FDIC-insured up to $250,000 per depositor for bank accounts ($500,000 for Premium Savings Accounts) and SIPC-protected up to $500,000 for investment accounts ($250,000 for cash).