E*TRADE (now owned by Morgan Stanley) has a long history in online trading. Power E*TRADE, their active trading platform, was once considered top-tier for options. In 2026, it's still good — but the competition has moved faster.

Commissions

  • $0.65 per options contract
  • $0.50 per contract for 30+ trades per quarter
  • $0 base commission on stocks
  • $0 assignment/exercise

    • Standard pricing with a volume discount. Nothing unusual here. The $0.50 rate for active traders is competitive with Schwab's active trader pricing.

    Power E*TRADE

    Power E*TRADE is a web-based platform (no download required) with a mobile companion app. It's clean, fast, and well-designed for options trading.

    What works well:

  • The options chain layout is clean with Greeks prominently displayed
  • Strategy optimizer suggests trades based on your outlook (bullish, bearish, neutral)
  • Risk/reward charts for any strategy before submission
  • Snapshot analysis shows P&L at multiple dates before expiration
  • The paper trading mode works well for testing

    • Where it falls short:

  • No equivalent to thinkorswim's thinkBack for historical options data
  • Scanning tools are basic compared to thinkorswim or IBKR
  • Limited ability to customize the options chain columns
  • No integrated backtesting

    • Strategy Optimizer

    This is E*TRADE's standout feature. Tell the platform your market outlook (direction and magnitude), and it suggests options strategies ranked by risk/reward metrics. For beginners who know they're bullish on a stock but aren't sure which strategy to use, this is genuinely helpful.

    The optimizer shows:

  • Maximum potential profit and loss
  • Breakeven points
  • Probability of profit
  • Capital required

    • It won't replace deep analysis, but it's a useful starting point for trade idea generation.

    E*TRADE Mobile

    The Power E*TRADE mobile app is well-designed. Options chain viewing, multi-leg order entry, and risk visualization all work smoothly on the phone. The app maintains feature parity with the web platform for most options functions.

    Compared to competitors:

  • Better than Fidelity's mobile experience
  • Roughly on par with Schwab's mobile app
  • Not as smooth as Robinhood for simple trades

    • Options Approval

    E*TRADE uses a standard tier system. Their approval process is moderate — more generous than Fidelity, less generous than tastytrade. Having a Morgan Stanley relationship or significant assets can speed up the process.

    Research and Education

    E*TRADE provides Morgan Stanley research alongside their own content. The options education library is decent but hasn't been updated as frequently as Fidelity's or Schwab's. You'll find basics well-covered but advanced topics are thin.

    Who E*TRADE Is Best For

  • Traders who want a clean web-based platform without downloading software
  • Existing Morgan Stanley clients who want integration
  • Moderate-volume options traders who qualify for $0.50 pricing
  • Traders who value the Strategy Optimizer for trade idea generation

    • Who Should Look Elsewhere

  • High-volume traders (IBKR is cheaper)
  • Traders who want the deepest analysis tools (thinkorswim wins)
  • Premium sellers who want the fastest multi-leg entry (tastytrade wins)
  • Cost-sensitive beginners (Robinhood or Webull are free)

    • The Competition Problem

    E*TRADE's challenge in 2026 is that they're not the best at anything. Schwab has better tools. IBKR has better pricing. tastytrade has better options-specific features. Robinhood has better mobile UX. E*TRADE is "good enough" across the board, but "good enough" doesn't attract new users in a competitive market.

    Verdict

    If you're already on E*TRADE and happy, there's no urgent reason to switch. The platform handles options competently, Power E*TRADE is well-designed, and the mobile experience is solid. But if you're choosing a new broker for options trading, E*TRADE probably isn't your first pick. Pair whatever broker you choose with OptionsPilot for options-specific analysis, and you'll have better screening capabilities than any single broker provides.