Category: Trading/Investing

Profitable Trading or Income Trader? E*trade Review!

Profitable Trading or Income Trader? E*trade Review!

Most people are thinking of a good way to invest their time, money and effort. The online platform has become a promising avenue for it! We all know that investments always come with a risk. So what we try to do is to minimize the risk and increase the profits or sales.

Since the pandemic happened, investments and stocks has become hot news. Many investors are pulling or selling their and some are buying because of the lowered prices. This is why we are doing a close up review on one of the top platforms that people use nowadays, E*trade!


E*trade Review Summary

Product Name: E*trade

Product Type: Investment

Summary: E*trade is an online brokerage pioneer. It belongs to the category of options and trading, in which, it was recently counted to be in top 5.

It is a computer-based platform and a full-featured application that offers different investing preferences or interests. It also has E*trade pro which caters to frequent and seasoned traders. It has live streaming feature of the real time data and it also includes tools for charting.

Price: Regular stock and ETF trades went to $0. Options trades run $0 + $.65 per contract, + $0.75 per contract.

Best For: Mobile Application Investment

Rating: 7 out of 10

Recommended


What is Etrade?

E*trade is an online brokerage pioneer. It belongs to the category of options and trading, in which, it was recently counted to be in top 5. The target market of this platform is active investors with over $100,000 to invest.

E*TRADE was founded in 1982 and the headquarter is found in New York City. It is one of the longest companies in the industry. It is also one of the first online brokerages in the United States. Right now, they have 4.9 million brokerage accounts. They also processed over 280,000 online trades in one trading day.

It is a computer-based platform and a full-featured application that offers different investing preferences or interests. It also has E*trade pro which caters to frequent and seasoned traders. It has live streaming feature of the real time data and it also includes tools for charting.

E*trade also acquired its former rival OptionsHouse $725 million. Because of this they were able to upgrade their services and tool on their platform. This is also gave birth to what I just mentioned, their pro version and Power E*Trade. There are also tools for options for analysis and strategy development tools.

If you are still starting on this field, then you can be helped by downloading their standard E*trade app or you can visit their website. They also offer trainings through their “education trainings”. This is to make you familiar with the market and with the app.

Here is the list of tradable assets available in their platform:

  • Stocks long and short
  • OTCBB
  • Mutual funds (over 4,600 no-load, no transaction fee)
  • Bonds
  • Single leg/ multi-leg options
  • Robo-advisor

How do you gain income from it?

This kind of investment really takes a lot of computing on the amount of ROI. It is now time for t us to look at how you are able to get income from this and if it will pay off the fee and charges you have.

Interests and price improvements

Just like how it happens in a bank, when you put your money in their account you can earn an interest from it even if you do not use it for investment. However, it is still more profitable if you let your money flow out of the system to the market.

They also price improvements on their equity and options orders. The average amount you will receive is $0.0045 per share for the price improvement. While for the options orders, you will receive $1.81 in each of your contract.

Loan Programs

There is no definite amount or cost stated on the loan given to other traders. But this is how E*trade says it works. They lend money to another trader which is commonly for the purpose of selling that stock. E*trade shares to the owner of the loaned stock an amount approximately 50% of their revenue generated from it.

What are the costs?

Charges differ depending if you are less frequent trader or a frequent trader (more than 30 option trades/ quarter). For example, E*traded charges $0.65 per contract to those trade less and $0.50 for the latter.

In effect of the pricing war which started last October 2019, the regular stock and ETF trades went to $0 which is previously $6.95. While options trades run $0 + $.65 per contract which are previously $6.95 + $0.75 per contract.

However, you have to take note that even if it is already $0 trades, tradings done during pre- and post-market hours are chanrged with an ECN fee of $.005 per share. This is added to the regular commission rate. And $6.95 charge for trading penny stocks still remains. This makes it not recommendable for this kind of trading.

What to like about it?

This kind of platform will not become successful without customers and clients that patronize it. So let us take a look at the top reasons why their clients prefer using their services.

Convenient Interface

E*trade has two platforms, website and application. Both have easy-to-use interface, with a very comprehensive layout for the users. They updated their interface for it to be more consistent to the most visited features. For their apps, there are two available versions which serve different purposes. The newest, Power E*Trade focuses on the derivatives.

Paper Trading

In their Pro version, you can already use projections and estimates before doing a real trade. This is only available in their desktop platform. It measures your strategies and capabilities! It is being used hundreds of thousands investors.

Portfolio

It is good that they already have sorted things out for you. Like what I said, there are always risks to any kind of investment. E*trade already categorized their markets according to their risks – conservative, moderate, aggressive.

Customer service

They also have a fast customer service. The average connection time is one to minutes and they have a high average in professionalism which is 8.4 over 10. It also ranks 6th out of 14 brokers ranked.

Is this for everyone?

If you are looking for international investment or aiming for an international market, then there are other investment platforms that could serve you better on this.

You cannot also check the overview of your net worth. Their system and features does not require the following features which is one of the strengths of other platforms.

When it comes to banking, they offer essential banking services with only 30 branch office location across the United States. However, they do not come close to competing with other leading banks. They said the FDIC insured banking rarely engages with online brokerage industry.

What other options can you have to earn money?

If you are a newbie and is simply trying to do your research on how to earn an extra income, I’ve got another one for you!

Affiliate Marketing is one of the growing platforms in earning passive income! You simply have to choose an affiliate program where you can sign up and get your affiliate link to the products that you want to promote. If someone buys through your affiliate link, then you will get a percentage or a commission from the sales.

The good thing about this is that you do not have to learn a lot of jargon or unfamiliar terms, or even study a lot about the business. There are affiliate networks that could actually help you build your platform for you!

Wealthy Affiliate is one of the fastest growing and sustainable affiliate networks across the globe! With its millions of members, there is an instant community when you join them.

We all know that there are certain basic or fundamental things that you need to learn, like website, SEO, blogs and many more. It may sound overwhelming but Wealthy Affiliate can assist you in that and in many more ways! Look at these:

Free Membership

You do not need to risk anything when starting with Wealthy Affiliate. You will not spend even a cent to build your platform and in learning the field.

Features

Most of the websites or apps that we encounter have hidden charges or additional costs. For Wealthy Affiliate, you do not need to purchase anything upon the sign-up. There are free training and tools that you can access as a free or starting member.

Their training are one on one and face to face with other member of the community. They have weekly webinars and conferences too! This only shows that the members and the founders are serious in helping people grow and earn money in this field!

24/7 Tech Support

Since this is online based, it is very important for the new one and tech savy people to have a 24/7 Tech support. Whenever you have problem with you website, affiliate merchant or products, or the website itself, you reach the tech support anytime of the day.

Passive Income

When you are done setting up of all it and started to write for your promotions, then the money will simply start to flow. Even when you are sleeping at night, you can gain income. It will be hundreds of dollars for the first few months and will eventually lead to four to five digits!

Like what I said earlier, this is more realistic in the area of Affiliate Marketing rather than in surveys. Because in this field, you are dealing with legit products and merchants like Amazon!

So what are you waiting for? Visit Wealthy Affiliate now!

Robinhood App Scam? A Fake Investment Scheme?

Robinhood App Scam? A Fake Investment Scheme?

They say this is the best time to buy stocks and invest! So you head to your search engine and look for the best way to do it. And Robinhood is one of the free-trading app that is mainly used by millennial.

Learning stocks could be a bit overwhelming and trusting someone else to do it for you is another thing. How secured and safe are your investments?

Robinhood Review Summary


Robinhood is an investing platform that offers free stock, options, ETF and cryptocurrency trades, and no account minimum. Mutual funds and bonds are not covered and only taxable investment accounts are available.
However, there are now far better investing apps that offers free stocks or commission-free.

All about Robinhood

Vladimir Tenev and Baiju Bhatt, former financial company owners, founded Robinhood Company to include everyone in the financial system, so as their mission states: “provide everyone with access to the financial markets, not just the wealthy”.

With the observation that in every traditional trade, it is the American that always gets the commission and has higher opportunity to be wealthy. So, one of the main characteristic of Robinhood is being commission-less which means that nothings goes to the company like fee or charges.

They actually make money from payments for order flow, a common although controversial practice whereby a broker receives compensation and other benefits for directing orders to different parties for trade execution.

How to earn using Robinhood

Robinhood is one of the leading competitors in the very promising and fast-growing fintech industry. The traditional way of investing and banking is now being put into the digital platform where billions of dollars are being invested on it.

It supports trading of more than 5,000 stocks, including most equities and exchange traded funds (ETFs) listed on U.S. exchanges; options contracts; cryptocurrencies such as Bitcoin and Ethereum; and American Depository Receipts (ADRs) for more than 250 globally-listed companies.

Coding problems and Loopholes!

Coding problmes and stocks

Robinhood faced series of coding problems in their system for the recent years and there is a new just this year! After an issue is resolved, another one comes up specially during hit-in or peak time. The company also suffered loss and their users as well. Let’s take a closer look at them.

Infinite Leverage

Robinhood users, mainly Gold members are manipulating the app by the use of a cheat code which is being spread through Reddit App. (News by 2019) In the comment section, a user bragged about gaining a $1M position with just a $4000 deposit.

This is caused by a loophole the app that puts the borrowed money into the user’s capital. This means that when the user will borrow money from the company they will give them a higher value and so the cycle goes on.

The glitch in Robinhood’s trading app allowed users to trade with unlimited amounts of borrowed cash, with one trader saying they turned a $3,000 deposit into a more than $1.7 million position.

Outage

After the issue on “Infinite leverage bug”, there is an outage last March 2020 which is a busy time for trading because of the Pandemic. This another code error of the company led to an error that locked users from accessing their accounts. This also caused users loss in their potential trade during that hit in and peak time.

Unsupported Mutual funds and bonds

Robinhood also lacks an automatic dividend reinvestment program, which means dividends are credited to accounts as cash rather than reinvested in the security that issued them. The company has said it hopes to offer this feature in the future. Also, investments only come through individual taxable accounts.

Customer support only comes through emails.

There is no available phone or telephone numbers which are commonly available for other brokerage customers. You can also send your queries through their online help center. Their website is easy to navigate.

How about the good points?

Free Investment Photo

There are also numerous reasons why a lot of people, specially newbies in stocks, are drawn to use Robinhood. Commission Free and Low -Cost expenses mixed with a very promising future surely catches anyone who’d like to earn big time!

Commission Free

The Company’s initial success in the industry is brought by their commitment to providing 100% commission-free in all their products. This means that you can also save and have a return from the supposed to be commission or fee.

Low costing

Most of the service charges in any trade or transaction come from the maintenance of accounts. Because Robinhood has their own subsidiaries for different services like, The Clearing (the company’s own clearning system), this reduces some of the service’s account fees.

Products

They have varied products for investment like stock, options, ETF and cryptocurrency trades. They are members of the Financial Industry Regulatory Authority (FINRA) except for the cryptocurrency. It is stated in their website that cryptocurrency under Robinhood Cryto:

“Cryptocurrency trading is offered through an account with Robinhood Crypto. Robinhood Crypto is not a member of FINRA or SIPC. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC.”

Mobile and web trading platforms

They have an easy to use web interface and design. Their process of application/signing up also only takes few minutes of verification and validation. This is made easier when you use the application using your phone!

They also offer automatic bank transmittal verification which lessens the user’s concern of to go the bank for registration or notification. The reflection on the account also depends on the amount being transferred. It normally takes 3-5 banking days to process. Users can set up automatic deposits on a weekly, biweekly, monthly or quarterly schedule.

No Minimum Account

There is no minimum account and it allows fractional shares which mean you can divide your investments into multiple portfolios. This enables you to buy many more companies, even if you don’t have a lot of money to invest. This is also a good way to manage investment, in case one investment goes down you still have 2 or more investments to go with.

Is it a Scam? How safe is it?

Robinhood is accountable to and is being regulated by top-tier financial and government authorities which make it safer and ensured the legitimacy of the company. The risks on coding errors which led to money loss and deceit are also present. Now, let’s ask a more relevant question: Is Robinhood for me? Does it suit the investment I want?

Robinhood is obviously for those who are well-versed in stocks, options and other investment products. That is why the safety of the investment also falls on how well you do you know the game.

Here is another form of investment that will surely suit your needs!

Safer Way to Invest and Have a Passive Income!

Make Money Online Photo

Affiliate marketing is one of the growing platforms where in people invest their time, money and effort. What you do is simply to be affiliated with a product that you like and market them on your own website! It is a good source of passive income and involves lesser risks money loss! Check how it works.

  1. Free – there is no capital needed! No capital means no loss. All you need to do is custom a website which will serve as you platform. Don’t have one? Marketing Affiliate will help you do it!
  2. Commission – earning comes from getting a commission from a product that was bought through you website. So the more traffic in your website, the more chances of selling then the more commission you will get. You literally earn while you sleep!
  3. You own your time – You do not have a boss think about or a dropping stock market to worry about. You can work in the most convenient time and place for you!

This will get more interesting as you join the community of Wealthy Affiliate. This is an online platform that commits to help you earn your money online for FREE! It has over millions of members and thousands added every week.

Training and Tools

They offer training, tools and modules that will help you start up this business. Here a rough list of what you’ll have for free:

  • Live Help
  • Websites
  • Website Backup
  • Beginner Training Course
  • Personal Affiliate Blog
  • Affiliate Bootcamp Training
  • Video Walk-Through
  • Keyword Research Tool
  • Training Classrooms
  • Affiliate Program
  • 1-on-1 Coaching

Community

You will not go through it alone! You can learn from people who have been where you are right now and learn from their experiences!

If you are looking for a one-stop platform for everything that you need then Wealthy Affiliate is also an excellent choice for you. It covers market research tools, web building tools, domain registration, website hosting, website backups, site security, and other related concerns! Instead of paying different services from different companies, choosing Wealthy Affiliate will lessen your effort and expenses! It literally provides everything so you can start earning. Try it out!