E*TRADE has long been one of the most well-known online brokerage organizations. The company’s zero-commission trading platforms and robust trading platforms will appeal to active traders, while new investors will benefit from a massive library of educational resources.
E*TRADE surpasses the competition with great educational resources, portfolio-building tools, and a wide mutual fund selection, even without its $0 commissions. E*TRADE continues to be a top online broker choice for all types of investors. E*TRADE provides three different trading platforms as well as a wide range of investment options. The company takes pride in its simplicity; you can trade, research, and bank on the same platform.
Investing in Cryptocurrency on E*TRADE:
You’re out of luck if you’re a trader or investor in the United States looking to buy cryptocurrency with your Etrade account. Unfortunately, the Etrade App does not provide native support for users looking to invest in or begin trading in Bitcoin.
Investing in crypto-oriented companies that are publicly traded on the stock market is currently the only option to obtain exposure to cryptocurrencies via the Etrade app. Stocks to consider include:
- Coinbase is a cryptocurrency exchange (COIN).
- MicroStrategy is a company that specialises in strategic planning (MSTR).
- Innovation EF-ARK Invest (ARKK)
Overview of E*TRADE vs. Ally and Others
Investors benefit from a wide range of mutual funds as well as the financial soundness of the company. Some of the broker’s competitors, on the other hand, provide a wide range of investing services, generally at a lower cost. Ally Invest and TD Ameritrade, in particular, offer competitively priced securities trading. Let’s see how Vanguard stacks up against other online brokers.
A Cryptocurrency Foray by an E-Trading Pioneer
E*TRADE has a market capitalization of $12.4 billion, compared to $8 billion for Coinbaseand $5.6 billion for Robinhood. Both fintech companies have yet to turn a profit, whereas E*Trade saw a 17% increase in earnings.
E*TRADE will begin trading Bitcoin and Ethereum in the near future, as well as other cryptocurrencies. In the emerging cryptocurrency business, all players must contend with regulatory uncertainty, market manipulation, and abuse.
· The entry of E*TRADE into the world of digital currency is as follows:
E*TRADE’s entry into the digital currency field comes at a time when the once-hot market is in flux, with crypto prices trading at a fraction of what they were in 2017. While Bitcoin has risen by around 40% in the last two months, it is still roughly 70% behind its peak in December 2017, just before the crypto-bubble burst and Bitcoin nearly reached $20,000.
Meanwhile, claims have surfaced that a large crypto operation, which operates the Bitfinex exchange and the crypto business Tether Ltd., concealed $850 million in losses in customer and corporate funds from investors and filled the gap with Tether’s cash reserves. According to reports, the event served as a safeguard for major corporations.
The current debacle shows how volatile the new and undiscovered cryptocurrency space into which E*TRADE is venturing may be. The substantial drop in crypto values over the last 18 months has been linked to ambiguous legislation and claims of market manipulation. According to Bloomberg data, the total value of initial coin offerings (ICOs) has dropped from $5.8 billion in June 2018 to $208.6 million in May 2019.
· In comparison to competitors, how does E*TRADE stack up?
The e-trading pioneer from New York City will compete against companies like Coinbase Inc., which have established themselves as go-to sites for such transactions.
In 2018, Coinbase was valued at $8 billion, with $1.3 billion in forecasted revenue. Robinhood, a no-fee trading company popular with millennials and recently valued at $5.6 billion, has added cryptocurrency trading to entice young clients.
E*TRADE has a longstanding reputation in the financial services industry, where it has been a player since the early 1980s, which gives it a competitive advantage over its newer competitors. According to The Wall Street Journal, the platform had over 7 million members as of March 31, 2019 and over 279,000 deals per day in Q1 2019. While Robinhood and Coinbase were among the first to enter the market, they have yet to turn a profit, and many people are wary of the millennial-targeting firms.In the most recent quarter, E*Trade’s profits increased by 17 percent over the previous year, while overall sales increased by 7% to $755 million.
The size and maturity of the online brokerage firm, as well as its entire range of brokerage services, may entice potential consumers away from smaller competitors.
According to the source acquainted with the situation, E*TRADE would first allow trading for just Bitcoin and Ether, the two largest digital assets by market capitalization, before considering other digital coins in the future.
Etrade charges the following fees:
eTrade does not charge any fees if you want to trade cryptocurrency stocks like Coinbase or Microstrategy. A fee of $1.50 per trade is charged to investors wanting to trade futures contracts.
E*TRADE’s entry into the risky cryptocurrency field would be a watershed moment for the nascent industry as it tries to break into the mainstream and garner institutional investors’ trust. The debut of cryptocurrency trading by a major brokerage would lend significant legitimacy to the digital asset market, attracting larger investors.