Understanding Investment Products*

How do stocks work? What are the differences between ETFs and mutual funds? What exactly is a bond, anyway? Use this page as a quick reference guide for brief overviews of the investment products offered by E*TRADE. Remember, you can learn a whole lot more at our Investor Education Center. Use the links below to get more detailed info.

Open an account today and get up to $6001

Plus 60 days of free trades for deposits of $10k or more

OPEN AN ACCOUNT

Get up to $600 cash credit for deposits or transfers made within 45 days of account open.

Deposit or Transfer Receive
$25K - $99,999 $200
$100K - $249,999 $300
$250K and above $600*

And open an account with $10,000 or more and receive free stock & options trades for 60 days once funds become available.

*Call us to see how you can qualify for more at 1-800-ETRADE-1

Get up to $600 when you open an IRA1

Plus 60 days of free trades for deposits of $10k or more

OPEN AN IRA
ROLL OVER A
401(K)

Get up to $600 cash credit for deposits or transfers made within 45 days of account open.

Deposit or Transfer Receive
$25K - $99,999 $200
$100K - $249,999 $300
$250K and above $600*

And open an account with $10,000 or more and receive free stock & options trades for 60 days once funds become available.

*Call us to see how you can qualify for more at 1-800-ETRADE-1

  • Product
    Definition
    Best For
    Learn More
    Commissions/Fees
  • Stocks
    An investment that allows you to buy and sell shares of publicly traded corporations. Also referred to as equities.
    Incorporating growth and value strategies as well as generating income through dividends.
    The Basics of Stock Selection (Video)

    $9.99/Trade

     $7.99 w/150+ Trades/Qtr2

  • Exchange-Traded Funds (ETFs)
    ETFs are investment funds which are traded on stock exchanges. They often have a specific goal, for example attempting to mimic a particular index.
    Efficient tool for diversifying & balancing portfolios. ETFs provide built-in flexibility & low costs. Can be bought on margin.

    $9.99/Trade

        $7.99 w/150+ Trades/Qtr 2
    (pay $0 commission on 100+ ETFs)6

  • Mutual Funds
    A professionally managed investment vehicle that pools money from many investors into a diverse basket of securities.
    Ideal for diversifying portfolios. Thousands of funds with many different investment objectives. Professionally managed, but some have extra fees (loads).

    Variable

    (1,300+ w/no load, no transaction fees)3

  • Bonds & Fixed
    Income
    A bond is a debt obligation issued by a corporation or government entity. They are commonly referred to as fixed-income securities.
    Bonds may offer less volatility than other investments and add diversification to a portfolio. They are frequently used for income generation.

    $1/Bond4


    Online secondary market trades ($10 minimum, $250 maximum)

  • International
    Investing5
    Investments in foreign markets and securities, including stocks, futures, international mutual funds, bonds, and ETFs.
    Growth opportunities, albeit with more risk. Excellent way to balance portfolios and tap into emerging markets.
       Foreign Stocks: ~$19.99 American Depository Receipt      (ADR): $9.99 International          ETFs: $9.99 International        Mutual Funds: Variable
  • Options
    Options are to buy or sell a security at an agreed-upon price within a specific period of time.
    May be used in hedging and income-generating strategies. Intended for sophisticated investors.
    $9.99 plus
    $.75/per options contract
  • Futures
    Often involving physical commodities or financial instruments, futures allow you to hedge or speculate on the price movement of an asset.
    Though speculative, futures are for hedging investment positions. Growth and leverage opportunities for risk-tolerant investors.
    $2.99/per contract/per side
    (+ fees)
  • Forex
    Forex—the world’s largest financial market—is a global decentralized market that facilitates trading in all the currencies of the world. Trillions of dollars are traded on forex every day.
    50:1 leverage presents growth opportunity for risk-tolerant investors. Also useful for advanced asset allocation & portfolio balance.

    $0.00/Trade7

    E*TRADE is compensated through a bid-ask spread7

*Any investment contains certain risk. Talk to an E*TRADE Investing Professional or visit the Investor
Education Center
to understand how to limit risk in your portfolio.

Open an account today and get up to $6001

Plus 60 days of free trades for deposits of $10k or more

open an account

Get up to $600 cash credit for deposits or transfers made within 45 days of account open.

Deposit or Transfer Receive
$25K - $99,999 $200
$100K - $249,999 $300
$250K and above $600*

And open an account with $10,000 or more and receive free stock & options trades for 60 days once funds become available.

*Call us to see how you can qualify for more at 1-800-ETRADE-1

Get up to $600 when you open an IRA1

Plus 60 days of free trades for deposits of $10k or more

Get up to $600 cash credit for deposits or transfers made within 45 days of account open.

Deposit or Transfer Receive
$25K - $99,999 $200
$100K - $249,999 $300
$250K and above $600*

And open an account with $10,000 or more and receive free stock & options trades for 60 days once funds become available.

*Call us to see how you can qualify for more at 1-800-ETRADE-1