ETRADE offers a full range of IRA account types — Roth, Traditional, Rollover, SEP, SIMPLE, Custodial, and Inherited — all with $0 minimums and $0 stock and ETF commissions. ETRADE is now part of Morgan Stanley, adding access to Morgan Stanley’s investment research. The 2026 IRA contribution limit is $7,000 per year ($8,000 if you are 50 or older).
E*TRADE’s IRA advantage: The Power E*TRADE platform is available inside your IRA, making it one of the few places where options traders can practice and execute more complex strategies within a tax-advantaged account.
E*TRADE IRA at a Glance
| Feature | Details |
|---|---|
| IRA types | Roth, Traditional, Rollover, SEP, SIMPLE, Custodial, Inherited |
| Account minimum | $0 |
| Stock/ETF commissions | $0 |
| Options per contract | $0.65 |
| Fractional shares | Yes |
| 2026 contribution limit | $7,000 / $8,000 (50+) |
| Robo-advisor | Core Portfolios (0.30%, $500 min) |
| Advanced platform | Power E*TRADE (free) |
| SIPC protection | $500,000 per account type |
| Parent company | Morgan Stanley |
Roth IRA vs. Traditional IRA at E*TRADE
| Factor | Roth IRA | Traditional IRA |
|---|---|---|
| Tax treatment | After-tax contributions; tax-free growth and withdrawal | May be deductible; taxed on withdrawal |
| 2026 income limit | $150,000–$165,000 single (phase-out range) | No income limit for contributions |
| RMDs | None during owner’s lifetime | Required at age 73 |
| Early withdrawal | Contributions withdrawable penalty-free; earnings taxed/penalized | 10% penalty before 59½ (exceptions apply) |
Investment Options Inside an E*TRADE IRA
- Stocks and ETFs: $0 commissions; fractional shares available
- Mutual funds: Large no-transaction-fee list; $19.99 for others
- Options: Covered calls and cash-secured puts available in IRA (Level 1/2)
- Bonds and fixed income: Treasuries, CDs, corporate bonds
- Morgan Stanley research: Access to analyst ratings and reports
- Core Portfolios: 0.30% robo-advisor available inside IRA ($500 min)
E*TRADE Core Portfolios for IRA Investors
Core Portfolios is E*TRADE’s robo-advisor. At 0.30% annually with a $500 minimum, it sits between Fidelity Go (free under $25K) and Merrill Guided Investing (0.45%) in cost:
| Robo-Advisor | Fee | Minimum | Tax-Loss Harvesting |
|---|---|---|---|
| Fidelity Go | 0% / 0.35% | $0 | No |
| E*TRADE Core Portfolios | 0.30% | $500 | No |
| Schwab Intelligent Portfolios | 0% | $5,000 | Yes ($50K+) |
| Betterment | 0.25% | $0 | Yes |
| Merrill Guided Investing | 0.45% | $1,000 | No |
For IRA investors who want automatic management, Core Portfolios is reasonably priced but lacks tax-loss harvesting. Since tax-loss harvesting is irrelevant inside an IRA (gains are already tax-deferred), this is not a meaningful limitation for retirement accounts.
Rolling Over a 401(k) to E*TRADE
E*TRADE accepts direct rollovers from 401(k), 403(b), 457, and pension plans. The process:
- Open an E*TRADE Traditional IRA (or Roth IRA for a conversion)
- Request a direct rollover from your former employer’s plan
- The check goes directly to E*TRADE on your behalf — not to you
- Invest the funds on the Power E*TRADE platform
A direct rollover is not a taxable event. If you take a check made out to yourself (indirect rollover), the plan withholds 20% for taxes, and you have 60 days to deposit the full pre-tax amount into an IRA to avoid tax and penalty.
E*TRADE IRA vs. Fidelity and Schwab
| Feature | E*TRADE | Fidelity | Schwab |
|---|---|---|---|
| Account minimum | $0 | $0 | $0 |
| Fractional shares | Yes | Yes (all, from $1) | Yes (S&P 500) |
| Zero expense funds | No | Yes (FZROX 0.00%) | No |
| Free robo-advisor | No | Yes (<$25K) | Yes ($5K min) |
| Options in IRA | Yes | Yes | Yes |
| Advanced options platform | Power E*TRADE | Decent | thinkorswim |
| Morgan Stanley research | Yes | No | No |
ETRADE is the best IRA choice for investors who specifically want to trade options within a retirement account and use the Power ETRADE platform for analysis. For pure buy-and-hold index investing, Fidelity’s IRA offers ZERO funds and fractional shares that E*TRADE cannot match.
For the complete E*TRADE brokerage overview, see the E*TRADE review or compare all platforms in our best brokerage accounts guide.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy