Of all the online brokers, ETrade is perhaps the most well-known. ETrade has been at the forefront of the rush into online equities trading, from adding investment choices to innovating mobile trading platforms. As BankShout continues its reviews of online brokers, we will further examine ETrade’s products, pricing, and online tools and bonuses.

Compared to the other brokers reviewed here, ETrade probably has the best website; the comprehensive homepage outlines exactly what ETrade does and how they do it (including, of course, why you would want to invest with them and not some other broker). Pricing-wise, ETrade isn’t the lowest out there. But they are not quite as expensive as TD AmeriTrade or Charles Schwab, either. ETrade’s main advantages are the sheer number of investment options they offer and that they have tended to expand and improve trading tools faster than other brokers.

ETrade’s description of its products choices is no exaggeration. Among online brokers, there simply isn’t another company out there that offers the “full range of investments” that ETrade has. In addition to stocks and options, ETrade has futures trading, too. They also boast over 7,000 different mutual funds; ETrade’s website states that members also have access to “every ETF (exchange-traded fund) sold.” A “Bond Superstore” grants entry to fixed-income markets, of which ETrade offers about 30,000 different securities. International investing is also a big plus, with 30 different foreign exchanges and 24 countries’ equity markets available.

In addition to the wide array of investment choices, ETrade has IRAs, including small business options such as SEP accounts and profit sharing plans. ETrade even has an affiliated full-service bank, with all the traditional accounts like checking, savings, and mortgages (although the bank and the brokerage are technically separate entities).

The best way to describe ETrade’s pricing is that it hovers in the online market middle–an average cost that is neither the dirt-cheap price of the cut-rate brokers like Zecco nor the extravagance of premium outfits like Schwab. Many investors find the ETrade trade off well worth it: you pay a fair price and still get access to many investment options and trading tools, plus some bonuses (we’ll talk about those later).

Bottom-lining it for you, you need to make at least 150 trades per quarter to qualify for ETrade’s lowest price of $7.99 per equity trade. Otherwise, trades are $9.99 each. Option contracts add .75 cents, while futures contracts are $2.99. Bonds, which are moved through secondary online trades, are $1.00, for stuff like corporate and municipal bonds, for example. Of the 7,000 mutual funds that ETrade offers, about 1000 of those are of the no load, no transaction fee type.

ETrade’s pricing gets a bit steeper when you look at broker-assisted trades, which will cost you an additional $45. You can trade “on margin” with ETrade if you want leverage, but that will cost you, too: tiered interest rates start at 8.14% (at 4% above base rate) on accounts less than $24,999.

Another advantage with ETrade is the quality of trading tools offered. It may because they have been in the game longer than most, but ETrade seems to deliver the most efficient platforms, and the company consistently receives high grades for both ease-of-use and customer service. In addition to customizable symbol lists and streaming quotes, there are specific platforms for active traders (Power ETrade Pro) and more traditional investors (MarketTrader) alike. Upholding their reputation for being on the leading edge of the market, ETrade also has mobile trading applications for both iPhone and BlackBerry. Advisement tools range from portfolio and risk analysis to pre-selected mutual fund lists and ETF screeners.

ETrade also scores high in the customer bonuses department. Although the promotions vary from time to time, specials like 100 commission-free trades or a free BlackBerry for new mobile customers aren’t uncommon. IRA rollover cash bonuses up to $500 are also occasionally available through ETrade.

• Vast amount of investment choices
• Number of ETFs available
• Comprehensive International Trading
• Customized tools suitable for all trading styles and frequencies

• Price of basic equity trades based on volume
• Broker-assisted trades relatively expensive
• Margin percentages a bit steep
• Fewer no load mutual funds than other brokers