How do I open an account?
- Choose the type of account you want to open.
- Complete our secure, easy online account application.
- For bank and brokerage accounts, you can either fund your account instantly online or mail in your initial deposit.
Call 1-800-ETRADE-1 (1-800-387-2331).
- Download an application and then print it out.
- Complete and sign the application.
- Send the application with a check made payable to E*TRADE Securities or E*TRADE Bank (depending on the type of account you're opening) to the appropriate address.
Can I transfer an account or assets from another firm?
Consolidating your assets at E*TRADE is easy. You'll have the opportunity to electronically transfer specific assets or an entire brokerage account from another firm during the application process.
Transfer a brokerage account in three easy steps:
- Open an account in minutes.
- Request an Electronic Transfer or mail a paper request.
- Full brokerage transfers submitted electronically are typically completed in ten business days.
Paper / mail requests for account transfers generally take three to six weeks, depending on how quickly the delivering financial institution is able to process your transfer request.
We'll send you an online alert as soon as we've received and processed your transfer.
Transfer an existing IRA or roll over a 401(k):
- Open an account in minutes.
- Request an Electronic Transfer or mail a paper request.
- Full brokerage transfers submitted electronically are typically completed in ten business days.
Paper / mail requests for account transfers generally take three to six weeks, depending on how quickly the delivering financial institution is able to process your transfer request.
We'll send you an online alert as soon as we've received and processed your transfer.
How do I check on the status of an application?
Simply call us at 1-800-ETRADE-1 (1-800-387-2331).
When can I start trading after I open an account?
You can start trading within your brokerage or IRA account after you have funded your account and those funds have cleared.
How do I fund an account?
Choose the method that works best for you:
- Transfer money electronically - Use our Transfer Money service to transfer within 3 business days, click here for instructions.
- By check - You can easily deposit many types of checks, click here for instructions.
- By wire transfer - Wire transfers are fast and secure, click here for instructions
- Transfer an account - Move an account from another firm, click here for instructions.
Can I roll over my 401(k) to E*TRADE?
Yes, you can roll over your 401(k) or other employer-sponsored plan to an E*TRADE IRA.
Do you offer certificates of deposit (CD)?
Yes, we provide access to a large number of high yield, FDIC-insured brokered CDs and other fixed income products through E*TRADE Securities. Once you're a customer, you can log on and visit the Bond Resource Center to learn more.
What is Adaptive Portfolio?
Adaptive Portfolio is a professionally managed advisory program from E*TRADE Capital Management. It helps keep investors on track with their financial goals and is part of E*TRADE’s larger suite of managed accounts. Adaptive Portfolio assesses investment objectives, risk tolerance, and time horizon to identify an appropriate asset allocation for each investor. It enables clients to invest in a portfolio of exchange-traded funds (ETFs) with a $5,000 minimum account balance to enroll. The portfolio is rebalanced2 semiannually, and when material deposits or withdrawals are made. Investors have access to a dedicated support team of Investment Adviser Representatives that they can speak with whenever they have a question.
How does it work?
First, answer a series of questions about investment objectives, risk tolerance, and time horizon.3 Based on those answers, a diversified portfolio of ETFs is created for an investor. Then, the investor can enroll an eligible new or existing E*TRADE Securities brokerage account with just a few clicks. Unlike many auto-investing solutions, Adaptive Portfolio combines human touch with responsive technology.4 It also rebalances semiannually and if material deposits or withdrawals are made, to help keep the portfolio on track.
What if I currently have an Adaptive Portfolio account with hybrid portfolios that I enrolled prior to June 29, 2017?
Your account, allocation, and fees all stay exactly the same. There are no changes. You will be able to maintain your account with its current allocation and will not be required to terminate or liquidate your positions. However, if at any time you make changes to your Investor Profile Questionnaire3 that result in a new asset allocation recommendation, you will be rebalanced into the appropriate all-ETF portfolio. We strive to provide our clients with choice for their portfolios, so if you wish to explore our suite of advisory programs you can call 1-866-484-3658 or visit etrade.com/guidance to learn more.
Why should E*TRADE Capital Management manage these investments?
E*TRADE Capital Management follows a disciplined investment strategy based on principles of Modern Portfolio Theory (MPT). MPT is a widely utilized framework for building diversified investment portfolios. The underlying philosophy of MPT is to contrast a portfolio with a combination of asset classes (e.g., U.S. equity, international equity, fixed income) based on the expected returns and volatility that these asset classes have displayed over time. Combining different asset classes may help limit risk and increase returns of the investment portfolio as the classes have varying levels of correlation to one other. Many of the assumptions made in MPT rely on historical data, which may not be representative of the future, potentially leading to unexpected outcomes.
The portfolio will be rebalanced semiannually and when material deposits or withdrawals are made. All portfolio holdings will be selected by E*TRADE Capital Management’s Investment Strategy Team based on multi-stage due diligence.
Here’s how the investments are managed:
- E*TRADE Capital Management’s Investment Policy Committee, with the support of the Investment Strategy Team, develops model portfolios.
- The team utilizes an investment analysis methodology that incorporates various quantitative criteria, including historical return, risk, expenses, manager tenure, performance and style consistency, and asset size and growth, to select securities held in the investment portfolios.
- E*TRADE Capital Management uses an algorithm to determine your recommended portfolio of ETFs based on answers to your Investor Profile Questionnaire. The goal is to select the right non-proprietary investments based on an investor’s investment objectives, risk tolerance, and time horizon.
- Adaptive Portfolio rebalances semiannually and when material deposits or withdrawals are made, to help keep the account on track.
- Access to an Investment Adviser Representative is just a phone call away.
For additional information, please see the E*TRADE Wrap-Fee Programs Brochure.
And finally, we’ll send monthly market commentary, along with timely insights during major market events, to help keep clients informed about their investments and the market.
What is an ETF portfolio?
ETFs are baskets of stocks or other securities designed to track a market, industry, or trading strategy. This means an index ETF attempts to match, not outperform, the market. ETFs are typically not actively managed, so they tend to have lower internal operating costs than traditional mutual funds. The bottom line: An all-ETF portfolio may offer an efficient way to achieve broad diversification at a lower cost. In addition, we also offer tax-sensitive ETF portfolios for each Investor Profile. This can help minimize the taxes of a portfolio in a taxable account.
What makes Adaptive Portfolio different from other auto-investing or robo solutions?
Unlike many auto-investing solutions, we:
1. Give clients access to a dedicated support team of Investment Adviser Representatives to answer any questions.
2. Do not offer our own proprietary ETFs.
How does an investor get started?
When we designed Adaptive Portfolio, we started with the premise that it should be as easy to use as possible. That’s why we boiled everything down to three simple steps:
Step 1: Complete an Investor Profile Questionnaire
We’ll guide investors through a short series of questions about their investment objectives, time horizon, and risk tolerance. It’s the information we need to know to make an investment recommendation.
Step 2: Review the Recommended Adaptive Portfolio
Next, we’ll recommend a diversified portfolio that fits the selected Investor Profile. An investor will be able to choose a tax-sensitive ETF portfolio based on their needs.
Step 3: Implement the Portfolio
With just a few clicks, an investor can put a plan into action with Adaptive Portfolio. We’ll monitor the portfolio on an ongoing basis and rebalance the holdings semiannually, and when material deposits or withdrawals are made.
Also, clients can set up recurring transfers and benefit from the potential long-term advantages of dollar-cost averaging5 and the convenience of investing regularly without requiring any repeating actions.
How long does it take to complete the enrollment process?
It takes less than 10 minutes. Need help? Just give us a call at 1-866-484-3658.
Is there a way to learn more about the enrollment process?
Of course! We always love to speak with new and existing clients. Just call our Investment Adviser Representative support team at 1-866-484-3658, weekdays from 8:30 a.m. to 8:30 p.m. ET. Our Customer Service team can also live chat anytime, seven days a week.
What happens after enrolling?
- If you like our recommended Adaptive Portfolio (and have met the $5,000 minimum), we can start building it with just a few clicks.
- All the investments are typically made within three business days.
- Adaptive Portfolio accounts are monitored daily for cash deposits and withdrawals and rebalanced semiannually.
- You’ll receive a consolidated confirmation statement letting you know when we make trades on your behalf.
- You can view your brokerage account statement online, which will provide information about your holdings, any trades we make in your account, any dividends you receive, and all other account activity, on a quarterly basis. Also, you may receive monthly statements based on activity in your account, including any advisory fees that were deducted from your account.
- You can check your holdings online 24/7 through the Managed Account Dashboard page.
- You will receive monthly market commentary, along with timely insights during major market events, to help keep you informed about your investments.
How does E*TRADE Capital Management keep their clients' interests in mind?
We build and manage an Adaptive Portfolio based on a client’s stated investment objectives, time horizon, and risk tolerance. The Investor Profile Questionnaire we use may be more comprehensive than other digital investment solutions. It was diligently developed and tested to help match clients to their investor profile. Our risk-based allocations consider Modern Portfolio Theory for each investor profile. Finally, we provide access to a team of Investment Adviser Representatives that clients can speak to when they have a question.
What criteria does E*TRADE Capital Management use to pick investments for a portfolio?
For each asset class (such as equities or fixed income), E*TRADE Capital Management selects investment holdings that, when combined in broad-based asset allocation strategies, seek to provide a high level of return potential for a given level of risk over the long term, generally three years or longer. That’s called risk-adjusted return potential.
Each investment selection is made by analyzing a spectrum of key data points, such as historical performance, expenses, tracking error, and liquidity. E*TRADE Capital Management reviews and evaluates the investment holdings in a portfolio on an ongoing basis to see if any material withdrawals or deposits are made, and rebalances the account semiannually.
Can a client select a different portfolio than the one recommended?
We recommend a portfolio based on the investment objectives, risk tolerance, and time horizon a client specifies in the Investor Profile Questionnaire. If a client’s financial situation or goals change, he or she will have the opportunity to view other portfolios and retake the questionnaire to update his or her financial situation. We can also help clients complete the Investor Profile Questionnaire. For assistance, call our dedicated support team at 1-866-484-3658, weekdays from 8:30 a.m. to 8:30 p.m. ET.
How do the risk questions within the Investor Profile Questionnaire help E*TRADE Capital Management determine an Investor Profile?
The trade-off between risk and reward is what drives investing, so we identify an investor profile based on the responses to a number of different investment scenarios. These responses help E*TRADE Capital Management gauge a client’s willingness and ability to ride out short-term ups and downs in pursuit of potentially higher long-term returns. Please note that answers selected within the Investor Profile Questionnaire are not equally weighted when determining a recommended portfolio.
Why are there eight questions in the Investor Profile Questionnaire?
We take our responsibility of providing a recommended portfolio very seriously so we created a comprehensive Investor Profile Questionnaire. An investor’s time horizon, risk tolerance, and investment objectives are factored into a recommendation.
When navigating through the Investor Profile Questionnaire, before selecting an answer, click on the question mark icons at the bottom of each screen to learn more about why we ask each question.
What types of accounts are eligible for Adaptive Portfolio?
Most retail E*TRADE Securities brokerage and IRA accounts with a U.S. address can enroll in the Adaptive Portfolio program. If an investor has one of the following, they are good to go.
- Individual account
- Joint account
- Traditional and Roth IRA
- IRA for Minors
- Beneficiary IRA
- Individual 401(k)
- Roth Individual 401(k)
- Rollover IRA
- Custodial account
- Roth IRA for Minors
A client can also convert and enroll any existing E*TRADE Securities brokerage and IRA accounts (listed above) in the Adaptive Portfolio advisory program. The full value of the account selected will be converted when the client completes the enrollment process. If the client wants to convert only a portion of the account, a new Adaptive Portfolio account can be opened. They can then easily transfer a portion of an existing account into the new Adaptive Portfolio account.
When can clients expect their money to be invested?
Once a client meets the investment minimum, he or she can expect to see the initial portfolio holdings purchased within three business days of accepting the Advisory Agreement. Additional deposits into the Adaptive Portfolio account are also invested within three business days.
Can a client set up a recurring deposit?
Yes, that’s a really good idea to help stay disciplined with saving and investing. Clients can use the online Transfer Money service to set up recurring deposits into their account based on the amount and schedule that works for them. Deposits will be invested automatically into their Adaptive Portfolio accounts and can help build assets without ever lifting a finger.5
Does Adaptive Portfolio offer cash management features, such as free checking?
Adaptive Portfolio is managed with a long-term perspective in mind. Frequent cash withdrawals might make the portfolio hard to manage and cause it to deviate from its objectives. To avoid this problem, Adaptive Portfolio doesn’t offer features such as check writing, debit cards, and Bill Pay. However, we don’t want to stand between clients and their cash. If a client needs to make a withdrawal, Customer Service can be reached anytime at 1-866-484-3658, and we’ll send a check or wire. A client can also transfer money online to another account and withdraw it from there.
Does a client need to sell any securities before he or she can enroll an account in Adaptive Portfolio?
No, we’ll do that for our clients. If Adaptive Portfolio determines that certain securities aren’t in a client’s recommended portfolio, it will ask the client to agree to sell the selected securities as part of the enrollment process. Once the client agrees to liquidate these holdings, we will do it automatically once the conversion is complete. As an added benefit, the transactions will be commission-free.
The advisory fee and underlying ETF expenses will apply. Note that the sale of the holdings may result in realized capital gains or losses.
Can an account be funded by transferring securities from another brokerage account?
Yes, a lot of clients do that. More than likely, Adaptive Portfolio will have to sell the securities (commission-free, of course) before they can be allocated to the portfolio.
Can self-directed trades be placed in an Adaptive Portfolio account?
No, Adaptive Portfolio is designed for investors who want ongoing help and a professional to manage their account. Please keep in mind, Adaptive Portfolio is a discretionary program and only E*TRADE Capital Management can place trades in an Adaptive Portfolio account. Of course, if investors would like to do some investing and trading on their own, they can open a regular E*TRADE Securities brokerage account at any time.
How much cash is in my account?
We have a 4% target cash allocation in all portfolios. This target 4% allocation is invested in interest-bearing money market funds or cash alternatives, where we seek to ensure a portfolio is as efficient as possible.
How does E*TRADE Capital Management choose which investments to sell when a client withdraws funds?
We would first try to use the cash balance in the account to satisfy the withdrawal. If the client needs additional cash, we strategically sell investments from across the portfolio in an effort to maintain the portfolio’s target asset allocation.
If the value of the account falls below the initial investment minimum, will a client be removed from the program?
No, we will continue to manage a client’s account even if it falls below the initial investment minimum. If the balance remains under the initial investment minimum for an extended amount of time, a client may eventually be asked to add funds to bring the account back to Adaptive Portfolio’s initial minimum. That’s because anything less than the initial investment minimum makes it hard to maintain an adequately diversified Adaptive Portfolio. On a related note, please keep in mind that portfolio performance may be impacted if money is moved in and out of the account.
How much does Adaptive Portfolio cost?
There is an annual advisory fee of 0.30%.
Each quarter, we calculate the annual advisory fee6 based on the average daily market value of an account. For example, an account with an average daily balance of $50K for the quarter will be charged $37.50 for that quarter. This direct fee is charged at the beginning of each new quarter for services provided the previous quarter. It is automatically deducted from the account.
Account Market Value7
Annual Advisory Fee
$5,000 and over
Does E*TRADE Capital Management help clients with tax reporting?
We provide resources like the E*TRADE Tax Center to help clients understand how their investments may be taxed. All taxable account activity will be reported on the annual IRS Form 1099, which is typically available in February of each year. We encourage clients to contact their tax advisor for any tax reporting questions.8
What tax-efficiency features are offered by Adaptive Portfolio?
Adaptive Portfolio provides a tax-sensitive investment strategy that utilizes municipal bond ETFs that may help reduce taxes incurred on interest and dividends associated with those portfolios.
How does Adaptive Portfolio rebalance an account?
Adaptive Portfolio uses technology to monitor client accounts. E*TRADE Capital Management reviews the portfolio to see if any material deposits or withdrawals are made, and rebalances it semiannually to help keep clients in line with their target allocation. It’s a technology-driven, disciplined approach that helps take the human emotion out of the equation.
How often can a client expect his or her portfolio to rebalance?
E*TRADE Capital Management will rebalance an account semiannually to align the account with its target asset allocation. It will also review the account for material deposits and withdrawals, and rebalance if it shifts too far from its target asset allocation. Although we monitor the account daily, it does not mean we will trade in the account daily. There could be some periods of time where the allocation does not shift, and no trades are required.
How do clients update their information if their financial situation changes?
Nothing ever stays the same. Adaptive Portfolio recognizes that if investment objectives, risk tolerance, or time horizon has changed, clients should update their Investor Profile Questionnaire by logging on to their account and clicking “Update” in the header of the Managed Account Dashboard. Based on the new responses, we may take another look at the asset allocation and recommend some changes to the portfolio.
Please be advised that as of June 29, 2017, hybrid portfolios of both mutual funds and ETFs are no longer available. We currently offer tax-sensitive, ETF-only portfolios to clients. Therefore, any changes you make to your profile that results in a new asset allocation recommendation may be rebalanced into the appropriate all-ETF portfolio, and this can cause a taxable event.
Can clients talk to a real person if they have questions?
Yes! Nothing makes us happier than speaking with clients (and potential clients). Just call our dedicated support team of Investment Adviser Representatives at 1-866-484-3658, weekdays from 8:30 a.m. to 8:30 p.m. ET. Live chat with a Customer Service representative is also available anytime, seven days a week.
Are Financial Consultants assigned to Adaptive Portfolio accounts?
While clients will not have a Financial Consultant specifically assigned to their Adaptive Portfolio account, they do have access to Investment Adviser Representatives through our dedicated support team at 1-866-484-3658, weekdays from 8:30 a.m. to 8:30 p.m. ET. Chat Live Now with a Customer Service representative anytime, seven days a week.4
Can E*TRADE stock plan assets be used to open an Adaptive Portfolio account?
Clients can open a new Adaptive Portfolio account and request to transfer vested unrestricted shares from their stock plan account into their Adaptive Portfolio account, subject to any limitations set forth in the account.
Please note: Shares held in an E*TRADE Securities stock plan account may be subject to certain sale and/or transfer restrictions and may be ineligible to be used to fund an account for the Adaptive Portfolio Program. Please consult a stock plan administrator regarding eligibility of certain holdings.9
Can I trade on margin with an E*TRADE account?
Yes. Once you are approved for margin trading you can borrow against the assets in your brokerage account. When you borrow on margin, you pay interest on the loan until it is repaid. E*TRADE Securities offers some of the most competitive margin interest rates in the industry. The minimum balance required for a margin account is $2,000.
Can I trade OTC Bulletin Board stocks (penny stocks) at E*TRADE?
Yes, you can trade OTC Bulletin Board stocks (also referred to as Pink Sheet or penny stocks) in your brokerage account. Typically these stocks — securities not specifically authorized to trade on the automated system offered by the Financial Industry Regulatory Authority (FINRA) — are either lower-priced securities or ADRs (American Depository Receipts) and are thinly traded. As a result, buy orders for bulletin board stocks must be placed as limit orders.
Note: E*TRADE Securities can't guarantee the accuracy of any quotation information on our site for these securities. You can usually place bulletin board trades on your own using our online system. However, sometimes the information you need may not be available for some thinly traded stocks. You may find it easier to get a current quote or place an order through one of our brokers over the phone by calling 1-800-ETRADE-1 (1-800-387-2331). You may not sell short, buy or sell mutual funds, or trade stocks with a market value of less than $10 per share until seven business days after your account application is approved. All customers will be charged an additional $25 for Broker-Assisted trades.
What is options trading & how do I trade options?
An option is a contract to buy or sell a specific financial product officially known as the options' underlying instrument or underlying interest. To get started trading options, you need to first upgrade to an options-enabled account. Or if you haven't yet opened an E*TRADE brokerage account, get started now.
Important Note: Options transactions are intended for sophisticated investors and are complex, carry a high degree of risk, and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options prior to applying for an account. An options investor may lose the entire amount of their investment in a relatively short period of time.
What is a sweep account?
A sweep account is an interest-bearing account for any uninvested cash that flows into your brokerage account from various sources. Cash is automatically swept daily into the sweep account, earning you interest. When you are ready to use this cash for trading or cash management activities, the necessary cash is automatically pulled from the sweep account. Click here for more information.
Can I trade gold, silver, and other commodities through E*TRADE?
Yes. Trade more than 200 futures products, including indexes, metals, and currencies using our professional-quality platform powered by Trading Technologies, the first institutional-quality futures trading platform available to individual traders with no platform fees. Click here for more information.
Does E*TRADE offer exchange-traded-funds (ETFs)?
Yes. In fact, E*TRADE offers every exchange-traded fund sold. If you open a new account, you can get up to $600 and 60 days of free trades. Click here to learn more about ETFs.
Note: The fund's prospectus contains its investment objectives, risks, charges, expenses, and other important information and should be read and considered carefully before investing. For a current fund prospectus, visit the Exchange-Traded Fund Center at etrade.com/etf.
Can I invest in mutual funds at E*TRADE?
Yes. E*TRADE offers more than 8,000 leading mutual funds, including hundreds of Morningstar® rated funds. Click here to learn more about mutual funds.
Note: The fund's prospectus contains its investment objectives, risks, charges, expenses, and other important information and should be read and considered carefully before investing. For a current mutual fund prospectus, visit the Mutual Fund Center at etrade.com/mutualfunds
Does E*TRADE offer retirement planning and guidance?
E*TRADE offers easy online tools to help you set your goals, choose the right account, manage your portfolio, and live in retirement. Or if you prefer one-on-one help, our Chartered Retirement Planning CounselorsSM can help find the plan that's right for you. Click here to learn more about our retirement offerings. Or call us at 1-877-921-2434.
Note: The Chartered Retirement Planning CounselorSM designation is provided by the College for Financial Planning®. Investment Professionals with this designation can be found in most E*TRADE Branches.
Does E*TRADE offer investment advice?
Yes. Whatever your investment goals, E*TRADE has the tools, education, and guidance to help you achieve them.
Work with a dedicated Financial Consultant10 to help you get started with the right advice solutions, or use our state-of-the-art online tools, such as My Virtual Advisor, to help you analyze, diversify, and manage your portfolio.
Attend our FREE live and on-demand retirement seminars, videos, and tutorials.11
How do I withdraw money?
You can securely transfer money between E*TRADE accounts and to and from other financial institutions using our free Transfer Money12 service. Many of our bank and brokerage accounts offer unlimited free check writing. And you can get unlimited ATM fee refunds at any ATM machine nationwide.13
What are the requirements to open a futures account?
To trade futures, you must open (or already have) a Margin brokerage account
Why do I need a Margin brokerage account to trade futures?
E*TRADE takes the protection of your assets very seriously. In order to ensure we are providing our customers with available financial safeguards, the Firm will only keep assets in the Futures account that are needed to satisfy the margin requirement of an existing futures position. Funds not required for futures margin will be automatically moved back to your Margin brokerage account where they are given SIPC or FDIC insurance.
How do funding an Automated Money Movement work in my futures account?
If your Margin brokerage account already has sufficient funds, there is no need to make an additional transfer to separately fund futures trading. The minimum margin requirement for futures positions held overnight will automatically be transferred by E*TRADE to your Futures account, including commissions and fees, and any deficiency funds required to satisfy margin calls. Conversely, any excess margin and available cash will be automatically transferred back to your Margin brokerage account where SIPC is available.
Is there a minimum funding requirement for futures?
There is no minimum funding requirement for futures.
What are the commissions for futures?
$1.50 plus exchange fees (exchange fees vary per product)14
What futures markets can I trade?
CME Group, ICE U.S. and CFE listed products, as well as their options accordingly (at a 6 month out range).
Where do I find the margin requirements for futures products?
Please review the Contract Specifications. Note: Information furnished is taken from sources E*TRADE believes are accurate. E*TRADE is not responsible for any errors or omissions. To confirm any item in this schedule, please contact the Futures Trade Desk 866-795-0160.
Are there any fees to receive live quotes for futures?
E*TRADE currently absorbs all CME Group quote fees for clients. ICE U.S. and CFE are passed through to clients.
Who is the clearing firm E*TRADE uses for futures?
Wedbush Securities, Inc.
What happens when/if I receive a margin call?
All margin calls are due the next trading day from when they are first issued. You may be required to sell securities or deposit outside funds to satisfy a margin call.
What is brokerage insurance?
SEC Customer Protection Rule
All fully-paid customer securities, including stocks and bonds, are 100% owned by the customer. These securities are required to be kept segregated from E*TRADE Securities' own assets, and cannot be used by E*TRADE Securities to satisfy its own obligations.
In addition, E*TRADE Securities LLC is a Member of SIPC, which protects securities of its members up to $500,000 (including $250,000 for claims for cash). SIPC's explanatory brochure is available upon request or at www.sipc.org.
SIPC coverage is not the same as the insurance on bank accounts provided by the Federal Deposit Insurance Corporation (FDIC). It does not protect investors against a decline in the market value of securities. SIPC generally protects customers against the physical loss of securities if the broker-dealer holding the securities for the customer fails.
Additional Brokerage Protection
E*TRADE Securities LLC has purchased from London insurers additional protection with an aggregate limit of $600 million to pay amounts in addition to those returned in a SIPC liquidation, provided that (1) the combined return from the trustee distributions, SIPC, and London to any customer does not exceed $150 million, and (2) as a sub-limit, return of cash to any customer by London does not exceed $900,000. This coverage does not protect against loss of the market value of securities. Details are available on request.
How is my brokerage account protected?
E*TRADE Securities LLC and E*TRADE Clearing LLC are members of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
How do you ensure the security and privacy of my account?
Protecting our customers' personal and financial information is one of our top priorities. In addition to some of the most advanced online security available, we offer the E*TRADE CompleteTM Protection Guarantee, which protects your privacy, your assets, and every transaction you make.
- Complete fraud protection - $0 liability for unauthorized use of your account.
- Complete payment protection - Plus on-time, accurate online bill pay and Transfer Money.
- Complete privacy protection - We will not sell your personal information to third parties or marketers for any purpose.
- An optional Digital Security ID - Unauthorized login is virtually impossible.
- Electronic documents - Help curb identity theft (you receive statements and account documents online instead of by mail).
- Smart Alerts - You receive customized reports of account activity and every transaction by e-mail, PDA, or mobile phone.
For complete details, visit www.etrade.com/protection.
What is an E*TRADE Line of Credit?
An E*TRADE Line of Credit is a revolving, non-purpose line of credit offered by E*TRADE Bank and secured by the eligible collateral you hold at E*TRADE Securities.
How can I apply for an E*TRADE Line of Credit?
To apply, visit the E*TRADE Line of Credit page, and click the “Get Started” button to begin the application process. Be sure to review the product features, risks, and disclosures to determine if this product is right for you.
How is an E*TRADE Line of Credit different from Margin?
An E*TRADE Line of Credit is different in two ways – the way in which the funds are used and the interest rates on the line of credit.
- How the funds are used:
- For an E*TRADE Line of Credit, funds can be used for any lawful purpose, except for the purchasing, carrying, or trading of securities or repayment of a margin loan.
- Margin can be used for any lawful purpose, including the purchasing, carrying, or trading of securities.
- Interest rates:
- E*TRADE Lines of Credit are tied to 1-Month LIBOR (London Interbank Offered Rate), as published in the Wall Street Journal, plus a spread. Line of credit interest rates are typically lower than Margin interest rates, and may move with changes to the 1M LIBOR rate, or fluctuations in the pledged collateral market value.
- Margin interest rates are typically tied to the E*TRADE Base Rate, which is set at the discretion of E*TRADE Securities with reference to commercially recognized interest rates. Margin interest rates may move with changes in the E*TRADE Base Rate, or with adjustments in the debit balance.
What account types are eligible to be pledged as collateral for an E*TRADE Line of Credit?
Individual and Joint brokerage accounts.
What types of securities are eligible to be pledged as collateral for an E*TRADE Line of Credit?
Most stocks, ETFs, mutual funds, and bonds are eligible to be pledged as collateral; however, not all securities are eligible. Call us at 1-800-ETRADE-1 (1-800-387-2331) for more information. E*TRADE Bank reserves the right to change eligibility requirements from time to time.
Are there restrictions on my brokerage account(s) once pledged as collateral for an E*TRADE Line of Credit?
Yes, there are restrictions on accounts pledged as collateral:
- Margin and Options trading. Upon being approved for an E*TRADE Line of Credit, the collateral account(s) will have margin and options trading capabilities removed (if applicable). Pledged accounts will also be prohibited from enrolling in margin and/or options trading.
- Cash management and payment features. Upon taking a draw from your line of credit, all cash management and payment features will be restricted [e.g., bill pay, check writing, use of debit card, electronic funds transfer (ACH), Fed wires].
What are my options if I want to maintain margin, options, or certain other features (such as bill pay, check writing, use of my debit card) in my brokerage account?
You can open a new brokerage account to use as collateral for an E*TRADE Line of Credit. Once the new account is open, transfer the securities you wish to pledge into that account, and then apply for the line of credit.
How long does it take to open an E*TRADE Line of Credit?
Typically, an E*TRADE Line of Credit can be established within a few business days, provided all required documentation is filled out completely and accurately.
Is there a credit check during the underwriting process?
Yes, a credit check will be performed during underwriting. Credit eligibility requirements apply.
How much can I borrow using my E*TRADE Line of Credit?
You may be able to borrow up to 50% of your eligible collateral market value, at E*TRADE Bank’s discretion
What are the collateral requirements?
You are required to maintain a minimum level of eligible securities in your collateral account. A decrease in the market value of your collateral may require you to deposit additional cash or securities.
Important Note: All collateral is subject to approval and E*TRADE Bank may change its collateral requirements at any time.
What is a Maintenance Call?
A Maintenance Call occurs if the market value of the pledged collateral falls below the minimum maintenance requirement.
How do I know if my E*TRADE Line of Credit is in a Maintenance Call?
You can check the credit line status on the E*TRADE website at any time by clicking on your line of credit account from the Complete View.
How can a Maintenance Call be resolved?
A Maintenance Call can be resolved by depositing additional cash or eligible securities into the pledged account to meet the collateral requirements, or by paying down all or a portion of the outstanding loan amount. Call us at 1-800-ETRADE-1 (1-800-387-2331) with any questions on how to resolve a Maintenance Call.
Important Note: E*TRADE Bank reserves the right to call a loan at any time, and to liquidate all or part of your pledged collateral account(s), without prior notice to you.
What is my interest rate?
Interest rates will be determined by your pledged collateral market value, and may be adjusted periodically subject to changes to your pledged collateral market value. Rates are tied to 1-Month LIBOR (London Interbank Offered Rate), as published in the Wall Street Journal, plus a spread. The LIBOR rate may be reset weekly (every Monday, or the following business day in event of a holiday). Visit the E*TRADE Line of Credit product page to view the most current interest rate grid.
Are there minimum monthly payments on my E*TRADE Line of Credit?
Yes, there are minimum monthly payments required for loans with an outstanding balance.
How are payments applied to my outstanding loan balance?
All payments on the line of credit shall be applied first to any fees and charges due, then to billed interest due, and then to reduce the total amount of outstanding credit advances.
What is the interest calculation period?
The interest calculation period begins on the first of every month, and finishes at the end of each month. Interest is calculated daily, and charged monthly.
What fees and charges apply?
There are no fees or charges to open a line of credit. You are only charged interest when you take a draw, and are only charged interest on the drawn amount.
If submitting payment by check, a processing fee may apply. There is also a returned-check fee, if applicable. Visit the E*TRADE fees page to view the most current fees.
How can I take a draw from my line of credit? What are the cutoff times?
You may request a draw from your E*TRADE Line of Credit at any time by logging onto etrade.com, selecting the line of credit account from your Complete View, and selecting the “Request a draw” button. A minimum initial draw of at least $60,000 is required. All subsequent draws may be any dollar amount, in increments of $1,000. Call us at 1-800-ETRADE-1 (1-800-387-2331) with any questions.
Your request must be received by 12:00 p.m. ET for next day availability of funds via electronic transfer.
Can I change the bank account linked to my line of credit for disbursements?
Yes, to change the bank account linked to your line of credit for loan disbursements, call 1-800-ETRADE-1 (1-800-387-2331) to provide other bank instructions. It may take up to three business days for changes to take effect.
How can I make a payment to my line of credit?
There are three methods of payment:
- Electronic transfer of funds (ACH). This can be done directly on the E*TRADE website by clicking on your line of credit on the Complete View, and selecting “Make a payment” in the quick links menu. This is the most efficient method of payment, and gives you the flexibility to make a one-time payment, or set up automatic recurring payments in fixed amounts or to cover the monthly interest due.
- Mail a check. Paying by check may incur a processing fee. Make checks payable to E*TRADE Bank, and be sure to include your line account number in the memo field. Mail your payment to:
P.O. Box 71974
Chicago, Il 60694-1974
- Draw on your line of credit (no action required). Any interest not paid by the due date will be automatically paid by drawing on your line of credit, adding to your outstanding principal balance. This will result in compounding interest.
How can I completely pay off and close my line of credit?
To request a full payoff amount, call 1-800-ETRADE-1 (1-800-387-2331) to speak with an E*TRADE representative. The payoff amount will include the total outstanding principal amount, in addition to any accrued interest.
Once the full payoff amount is remitted and processed (via any of the above noted payment options), we will close your line of credit account at your instruction.
What are the risks to an E*TRADE Line of Credit?
Securities-based lending involves special risks and is not suitable for everyone. Be sure to carefully review product details, risks and benefits to ensure this product is right for you.
- A decline in the value of your pledged collateral may require you to provide additional funds or securities to avoid a Maintenance Call.
- You can lose more funds than are held in the collateral account. An E*TRADE Line of Credit account is a full-recourse loan and you will be held liable for any deficiency.
- E*TRADE Bank can force the liquidation of any securities pledged as collateral, and can do so without contacting you first. You are not entitled to choose which securities in the collateral account are liquidated.
- E*TRADE Bank can modify its collateral maintenance requirements at any time, without notice to you.
- You are not entitled to an extension of time to resolve a Maintenance Call.
- If your assets are liquidated by the bank, there may be adverse tax or other consequences.
- An E*TRADE Line of Credit is an uncommitted demand facility, which means the bank may demand full or partial repayment at any time or elect not to advance funds.
What are the benefits?
There are a number of potential benefits, including:
- Access to liquidity while maintaining your long-term investment strategy.
- Access to funds quickly through a digital, streamlined application process (application decision typically within 1-2 business days).
- Manage draws and payments conveniently online.
- Repayment flexibility, allowing you to effectively manage your cash flow.
- No hidden fees or expenses.
- Interest charged only on the drawn amount.
Will I receive a 1099 for interest paid?
No, 1099s are not generated for E*TRADE Lines of Credit. Please speak with your tax advisor for any tax-related questions.
Can I set up recurring automatic payments? How?
Yes, automatic recurring payments can be scheduled in fixed amounts, or to cover the monthly interest due. Click on your line of credit account in the Complete View, select the “Make a Payment” button, and click “Review Statement and Setup Payment.” Next, click “Automatic Payment Rules” and select your method of payment (or create one), and specify the automatic payment rule you wish to apply.
Can I appeal a rejected line of credit application? How?
Yes, if your line of credit application is rejected, you can request a formal appeal by contacting us at 1-800-ETRADE-1 (1-800-387-2331) to speak with an E*TRADE representative.
Can I adjust my pledged collateral account structure (add/remove collateral accounts)?
Yes, you can adjust your pledged collateral account structure by filling out an Amendment to Line of Credit and Security Agreement form. You can retrieve this from the Forms and Apps section online, or by calling 1-800-ETRADE-1 (1-800-387-2331) to speak with an E*TRADE representative for directions.
If you have an outstanding loan balance, any adjustment to the pledged collateral account structure must be reviewed and approved prior to implementation.
How much in collateral securities do I need to apply?
There is a minimum requirement of $200,000 in eligible collateral to apply.