SEC Rule 606

Quarterly Order Routing Report


E*TRADE Securities LLC (E*TRADE) is required by the Securities and Exchange Commission (SEC) to disclose its policies with respect to payment for order flow. According to the SEC, payment for order flow includes monetary payment, reciprocal agreements, services, property, or any other benefit that results in remuneration, compensation, or consideration to a broker-dealer in return for routing of customer order flow and includes exchange rebates and credits.

E*TRADE receives payment for order flow from particular market centers for customer orders in National Market System (NMS) Securities (i.e., exchange-listed stocks and ETFs and standardized options) that E*TRADE directs to and are executed at such market centers. E*TRADE is compensated through its receipt of payment for order flow and will furnish upon written request the source and amount of any such compensation it received in connection with a particular transaction.  In accordance with SEC Rule 606, E*TRADE publishes a quarterly report detailing the material market centers to which it routes orders in NMS Securities and its material relationships with those market centers.

E*TRADE’s order handling practices are subject to E*TRADE’s best execution obligations. E*TRADE maintains policies and procedures to review the quality of executions it receives from market centers to which it routes orders and, notwithstanding its receipt of payment for order flow, E*TRADE seeks to route customer orders consistent with its best execution obligations and the results of such reviews.

Starting in Q4 2022, E*TRADE began transitioning existing clients to its affiliated broker-dealer, Morgan Stanley Smith Barney LLC (Morgan Stanley).  Clients will be given advanced notice of their transition date along with detailed information regarding the transition. Learn more about this transition.

To identify which broker-dealer is currently servicing your account(s), go to the accounts broker-dealer page or check the bottom of your more recent account statement.

Historical Quarterly Order Routing Reports reflecting order routing and execution statistics for both E*TRADE and Morgan Stanley client orders are provided below. Learn more about Morgan Stanley’s order routing practices.