2million - My Journey to Financial Freedom

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Friday, April 07, 2006

I used to Love Etrade, Now I am Ready to Toss Them

I opened an Etrade brokerage account back in 1996 and loved the lower commissions and easy access to trading. Now adays Etrade seems to have higher commissions than their competitors and I think the customer service is horrible. With my latest series of Etrade problems, I have had enough.

Back in November I logged into my Etrade brokerage account and was just reviewing my account activity and was surprised to see a line item for "Mandatory Reorg fee" for $20. It appeared to be for the exchange of 1 share of Palmsource stock for cash (as a result of a buyout of the company) that I got from the Palm spinoff. The share only netted me $18.50 in cash so I was a little mad that it somehow cost me $20 to get the $18.50 for the share.

On November 19th I submitted a help request on their web site to inquire about the "Mandatory Reorg fee" and to see if they could remove it since it seemed crazy that the fee was worth more than the stock. I immediately got the standard form email response:

Thank you for contacting E*TRADE Securities. The reference number for your inquiry is XXXXXX-XXX. Your inquiry is important to us and during this period of high volumes our goal is to respond within 1 to 3 business days. We appreciate your patience.

Sincerely,



E*TRADE Securities LLC

Customer Service

http://www.etrade.com



P.S. This message is your confirmation that we have received your inquiry. Please do not respond, since we cannot answer messages sent to this e-mail's return address.



A second email and over ONE MONTH later I finally got a response other than an auto reply message.


After this incident I started mulling over the possibilities of changing brokerage companies. As a result I decided to cancel the DRIP enrollment for the Anheuser Busch stock in my account since you can't transfer fractional shares when you transfer your holdings to another company. The request went through ok and I received a notice confirming I was no longer in the DRIP plan. I even went on the Etrade web site and confirmed the stock in my account was no longer enrolled in the DRIP plan. However a few days later BUD paid its dividend and oddly enough it was reinvested into BUD stock.

Needless to say I have submitted another customer request, but I don't expect a reply for about another 24 days or so.

54 Comments:

  • yes, etrade is not good. I used them for their 100 free trades - except, I didn't get to use all 100 free trades! I contacted customer service about the problem and got something over 2 weeks later to the tune of "sorry, we can't fix that problem."

    I use OptionsXpress now

    By Blogger Phoebe, at 3:31 PM  

  • I am also an ex-Etrader, and I will never go back! You are not the only one to experience these problems.

    By Anonymous Anonymous, at 4:17 PM  

  • I used etrade way back around 96 ot 97...closed the account because it just wasn't all that great of a deal...I used Scottrade now...

    By Blogger freedumb, at 6:27 PM  

  • Etrade is the worst of all the discount brokers. They kill you with dumb fees for just about anything.

    I really like Fidelity.

    -great customer service
    -access to Fidelity Funds and their no transaction fee funds network
    -reasonable commision ($10.95) if you have more than $$50,000 in combined accounts

    By Anonymous Anonymous, at 8:35 PM  

  • More than likely, you elected to have unenroll in the DRIP program after the last ex-dividend date, so your modification would apply to the next round of dividends.

    I also had the $20 mandatory reorganization fee when a stock I owned joined the NYSE. It's not an eTrade thing, it's an SEC thing.

    Not trying to stick up for Etrade, as I've had a terrible experience with their customer service in the past.

    I use Ameritrade now, and am pretty happy. Their commisions are a bit steep at $10.99, but that's it, no other fees to worry about, etc.

    Good luck!

    -Grant
    www.TheCornerOfficeBlog.com

    By Anonymous Anonymous, at 8:46 PM  

  • Did you say that you can transfer your shares from one brokerage to another? I have been sticking with E*Trade for many years just because I thought that I would have to sell to move.

    By Blogger RS, at 9:32 PM  

  • rs,
    yes it's pretty common to have your positions transferred when you switch brokerage accounts.

    By Anonymous Anonymous, at 9:56 PM  

  • I fired Ameritrade and now LOVE Fidelity just like someone else said...

    By Anonymous Anonymous, at 11:57 PM  

  • Aren't you going to tell us how much income you make off of the ads on your blog page?

    By Blogger The Big Time, at 3:04 AM  

  • I dumped E-Trade. The reason was the horrible customer service. If you try calling them you have to wait on the phone for one hour+ and the e-mail based customer service never works. I have accounts in both Ameritrade and Fidelity both of which are pretty good.

    By Anonymous Anonymous, at 2:48 PM  

  • I left etrade also because of all the random fees they were sticking me with. Their horrible customer service and underhandedness with regard to fees deserves to be repaid with both lost existing customers and forgone prospective ones that read about the etrade horror stories here...

    By Anonymous Anonymous, at 10:21 PM  

  • $2M, et. al.,
    I'm suprised to hear how bad etrade is -- unfortunate.
    I have a few options to recommend:

    a. you might be able to request that all your shares (physical certificates) be delivered to you when you close the account. This might address fractional share issues, but then again, they might clober you with certificate fees.

    b. when consider alternative brokers, you might look at first trade (www.firsttrade.com). They were recommended #1 by consumer reports. They are $5.95 a trade I think. Pretty reasonable. I've been happy with them so far.

    Have a wonderful Monday,
    makingourway
    makingourway.blogspot.com

    By Blogger makingourway, at 1:30 AM  

  • 2Mil

    You might want to try Interactive Brokers. Also, I've only been reading since BusinessWeek mentioned your website but when I
    read this I immediately thought of you. It's a new ETF that lets the "avg. Joe" hedge the price he pays for gasoline!
    A couple of suggestions. One; don't buy and hold if the price of gas goes down. Two; wait a few days until it settles a little bit. (It's only been out for 2 days now)

    http://etfinvestor.com/article/8859

    goodluck,
    Jeff B

    By Anonymous Anonymous, at 8:13 AM  

  • I read somewhere that Muriel Siebert is the best online trading company, in terms of commissions, interest on your balances, and execution prices. But, as I skimmed through their website, I was shocked to see that they charge a very high interest rate for their margin loans. If you don't buy stocks on margin, then Siebert might work for you.

    By Anonymous Anonymous, at 3:04 AM  

  • I got fed up with E-Trade last year and transferred my account to BrownCo, which I loved. Now E-Trade bought BrownCo and I'm back again. Dammit!

    By Anonymous Anonymous, at 10:29 PM  

  • Just dumped Etrade. I was tired of being hit with a $40 quarterly fee (for not doing enough trade/having a low balance) and a $20 fee for having one of my stocks being bought out by another.

    I tried to have them send me stock certificates, but they wanted to charge me $40 per certificate to do that. Cut a check ? That's $20 too !

    By Anonymous Anonymous, at 11:10 AM  

  • I dumped E-trade in the late 1990s when they started charging a low balance fee for anything under 5K in thier money market account. I wouldn't have been happy about the fee in any event, but they sent me some obscure thing in the fine print about raising the fee which I didn't notice and they wouldn't refund me the charge. As other have said, they like to sock customers with these kind of charges in a very underhanded way.

    By Anonymous Anonymous, at 7:54 PM  

  • I've never hated a company more. Those shysters! ETRADE should be out of business for being so deceptive. Or chage their ways. I discovered www.tradeking.com They seem to be a breath of fresh air, low commissions, no fees.

    By Anonymous Anonymous, at 12:58 PM  

  • So, I set up an E*Trade account in February being drawn in by their 5.05% savings account return. While I was doing that, I saw that they were advertising a 5.40% 1 year CD and I got one of those too. I entered my bank routing number and they said it would take 2 weeks to establish the account, so I gladly waited. After two weeks, I called to ask what the problem was, and after being put on hold for a ridiculous amount of time the representative told me it was in the process of being taken care of. I called back once per week for another month and received the same response. Finally, one of them said that the DMV had not verified my mailing address and that I should fax in my driver’s license. Again, I gladly did so. I waited another two weeks and called only to get the response that the address on my driver’s license did not exactly match the one that I entered on the account (because I intentionally wanted the statements sent to another address). They also could not change it. Notice that for both problems they did not call me and I had to take the initiative to inquire. I said “Forget it, I will just close the account.”

    Thinking that I was finished with E-Trade forever, I put my money in a CD at my local bank. Three weeks later (this is May now and I applied for the CD in February), I notice $6000 missing from my bank account. After asking my local bank where it went, they said it had been wired out by E*Trade. When I contacted E*Trade they said that the CD rate had dropped to 5.16% and that I would have to pay a early withdrawal fee to get my money back. And here is the scary thing, if you look around the website there is no way to remove your bank account access from them. What is stopping them from taking more money without my permission? Any suggestions as to what I should do? I’d sue them, but I don’t think I can prove any of this.

    By Blogger Unknown, at 9:21 AM  

  • I've had Etrade for some time, I just about had it with them. I have requested my damn debit for just about 4 freaking months now, the first two were not delivered, the third one, I had to stay home because some idiot at ETRADE requested that I stay home to sign it off. Then when I missed work because of that, I opened the letter and it had the wrong damn name on it. I requested another one and its not here. I requested another one, but I am just switching to ScottTrade, I cant take it anymore.

    By Anonymous Anonymous, at 11:49 PM  

  • My Etrade account was hacked on Thursday. When i called them they said some one will contact me in 24 hours. Its been three days and no one called me so far. When i call them they say that either the case manager is not at his/her desk or they will call me in an hour. I trusted Etrade and if i do not hear anything from them today, i will be contacting national and local news agencies. Did this just happen to me only or it happened to lot of people that they can not resolve the issue?

    By Blogger Phani, at 5:08 PM  

  • I place a market order to sell AAPL at 9:36 AM. The oreder was not executed after 1 hour. Tried to cancel and modify to no avail. I called and was told that Etrade had routing problems. Eventually, next day I was told that the order was executed after the market closed at whatever the price then (at 4:3? PM). During the day and because of the uncertainty I took actions and I lost money. Any idea what can I do?

    By Blogger Kevin, at 2:16 PM  

  • I just closed my account after 4 months. They took two months just to get my wife added to the account. Customer service is the worst. They had me fax in her info twice and did not bother to call back. Said I didn't send it. Finally got someone who amazingly found it!!! Then when she logged in, one of these new security questions which is done by a third party service asked her where her ex-husband lived!!! Now how unethical is that. I called and they said that it is not their problem. YES IT IS! You have my money, you respect me by not asking my wife such questions. OH, and because she did not know the answer, it blocked her. So I had to call to get her switched back on which only took 50 minutes!!!! Not a week after that, I looked at my account balance in my savings (5.05%apy) and $1000 was missing!!!! Plus, my two transfers were stopped! I called and got a run-around for three days. Finally they admitted they messed up and put the money back in. Didn't offer anything but a shallow apology. I don't know what is going on up there but I am not standing around to see. I have closed both my and my parents’ accounts with them and moved to another provider. Everyone beware of Etrade.

    By Blogger jhoover677, at 3:12 PM  

  • My very first blog - you know it must be a horrible experience if I googled "I hate ETrade" and I'm blogging out of hatred.

    ETrade is absolutely incompetent when it comes to restricted securities. I have a very large account that is in restricted stock and have been trying to sell for 3 mths. Their restricted stock group couldn't even send me the correct paperwork to complete to begin the transaction. I had to tell them. Two months later I was allowed to trade but now they can't find the correct paperwork or process to request the shares from the transfer agent. They have left me in a short position, from which I am now incurring fees, I have a cash call, I don't have access to the funds from the sale and not even accumulating interest. To top it off, their customer service reps (even the Resolution Group) are absolutely worthless. ETrade should be banned from being a brokerage for restricted securities. I will never do another trade with this bunch of incompetents.

    By Anonymous Anonymous, at 11:23 PM  

  • BEWARE OF ETRADE !!!!
    I moved $15000 to another brokerage company by Etrade Check, few days later my ETrade brokerage account was closed with $1000 in it without giving any reason or explanation. I heard another guy lost $6000 this way. Please take all your money out of this company as early as possible or else anytime your account will be seized or frozen without any reason.

    By Anonymous Anonymous, at 1:18 AM  

  • I am in the process of closing my Etrade accounts that I opened in 1997. Etrade is feeing me to death. $40.00 quarterly fee if no trades were made in the account or the balance falls below $10,000. I guess etrade has no tolerance for folks that hold stocks long term or term or for market flucuations. I am also tired of having to pay etrade whenever companies merge and change symbols.

    Apparantly, etrade no longer wants the small investor that helped build the company. No wonder its stock price tanked.

    By Anonymous Anonymous, at 10:37 AM  

  • I logged in to my etrade account a few weeks and was greeted by a new series of "security" questions. One asked if I knew any of 4 people it listed. I said no. As a result, I have been blocked from the account. Turns out one of the 4 people on the list was the wife of someone who a house from me 10 years ago. The justification for this, and other ridiculous questions was "It is public record". Those idiots actually think that makes sens and blamed it on Homeland Security and the third party company the use to create the questions. When I called, they wanted me to fax in a copy of my drivers license. Who can find a friggin' fax these days? I found one and faxed it in, but they lost it. Now they want to to get a notarized note saying I am who I am and FedEx it to them. They screw up the security and I get to take a day for it. The arrogance of the way they have handled this still pisses me off. I'm out of there as soon as I can manage it.

    By Anonymous Anonymous, at 10:13 PM  

  • Oooh ooooh! A chance to rant!
    I'm in the process of closing my E-Trade account, like everyone else I got tired of the fees, but I saw they had a %5.05 APY savings account so I just opened an online bank account and moved my money into there, planning on closing my brokerage account.
    Only a couple days later I receive an e-mail advertising %4.40 APY savings account. "Huh? Didn't I just open one of those at 5.05?" I thought to myself. I checked and sure enough, they lowered the rate. With thoughts of "Bait and Switch" in my head I spent 30 minutes on the phone trying to close both accounts. Got the Brokerage closed, but was informed I have to pay a $15 check writing fee if I want to get my money by check, or I can set up an external account and do a quick transfer electronically.
    Fine, next hoop, I log in and set up my external account, and receive notification that I have to now activate outgoing transfers for that account. Ok this is frustrating, but I'll go through another hoop, I click on "click here to activate now".... oops I get an error message, the e-mail isn't correct. Eh? All my e-mail addresses are fine what's the deal, and why's a valid e-mail address necessary anyway? I just got through verifying my account! Next hoop I call customer service, who informs me that I have to wait 10 days before I can use the outgoing transfer. NOWHERE does it say anything about a 10 day wait on the website, and I'm very dubious. She said she'd try to get my interest rate back up to 5.05, but I'd be amazed if she wasn't lying.
    I wish I could say they are the worst customer service, but sadly I've been through so many stupid/mean customer service scenarious, I've come to expect it now. That said, I'm leaving E-Trade as fast as I can, I suggest everyone do the same.

    By Anonymous Anonymous, at 11:44 PM  

  • Just to add my experience here. I opened a brokerage a/c with them 2 weeks back. I wanted to buy intc (intel) the same day with their one month free trade and used what they call quick transfer to transfer money from my bank to the their brokerage account. But quick transfer is not at all quick. its very misleading. It takes 5-6 business days for the money to be available for trading. With Ameritrade you gets the funds the same day or next day. Anyway I figured out though their ad said 6.99 -9.99 as commission its only for those who trade more than 30 times or so in a quarter!! Well I trade much less than that and my commission would be 14 dollars!! Again, Then I started reading their agreement in detail and found out that they have account fee of 40 dollars/quarter. And also fees for everything.. for writing checks etc. For transfering there is a 70 dollar charge though ameritrade agreed to repay it. WHat I finally decided is to open a complete savings a/c move my money from brokerage to it using quick transfer and they started the closing process. Told me they will close the a/c in a few days. I plan to do the same with the savings account as I feel like I might be bombarded with some kind of fees in the future without my knowing.

    By Anonymous Anonymous, at 2:54 PM  

  • This is an interesting forum. I have been with etrade a few years now but more recently just really getting into the market and learning how to trade. The etrade site is way too busy and difficult to find things, even though they claim it is very easy to use. I don't mind having a checking account with them because I'm making about 5% a month on my monies in that account, but I can do the same with PayPal. Now I'm looking into new brokerage companies, like TD Ameritrade for one. I don't know too many others that are simple enough to get into, but then again, I'm just really starting to learn about trading and investing in the market. Thanks to all of you who have posted your warnings about etrade. I want to get out now before they go belly up.

    By Anonymous Anonymous, at 8:07 PM  

  • I've had etrade for quite a while too. It's 2/1/2008 and I'm ready to move on. I might look into ameritrade too. I saw their commercial on tv the other day and was intereste din it. I never did get the free trades from etrade either. bummer.. but ready for a move.

    By Anonymous Anonymous, at 8:09 PM  

  • etrade is useless. they cannot even handle a simple money transfer from my citibank account to my roth. 1 month and 4 useless service center emails later -- no joy. i start to think they dont even read the service center emails. i'm going to try and transfer my account to another broker.

    By Anonymous Anonymous, at 12:04 PM  

  • Funny reading all these comments...my experience with ETrade, so far, has been very good (ex-Brownco customer). In fact, I stumbled onto this blog while looking for info about a $20.00 fee charged by AMERITRADE for a company reorg - I still think it's too high, but obviously Ameritrade is not the only one. And my few uses of ETrade customer service have been satisfactory.

    By Anonymous Anonymous, at 9:07 AM  

  • I'd like to get rid of eTrade also. Is there an online company that will take on the burden of transferring my etrade acct to their firm?

    By Blogger Woodpainter, at 7:41 PM  

  • I opened a roth 3 months ago. Discovered my account was "disabled" after 3 weeks. Called several times and was told to fax multiple items. I faxed them. Two months later I discover the account is still "disabled". Customer service says I have identity problems because my mailing address and my living address are different. They want tax receipts for my home, IRS statements, Driver's Lic., Social Sec. BUT WAIT! There's more! I've faxed them tons of documents but whenever I call....everything is still "being processed". Somehow they only have a record of TWO faxes instead of the 6-7 I've sent. They did claim that my originsal fax 3 months ago was not legible. Not legible? A fax? I've cancelled my auto deposit but I'd LOVE to sue them into the ground for theft of my money (they have been holding it without giving me access) and fraud (they claim that the Patriot act requires all these endless ID forms).

    By Anonymous Anonymous, at 11:47 PM  

  • im trying to invest about $1500 total, and was just searching around to see which service would be the best for my situation. Etrade was the only service i knew of by name, but it seems that they are certainly not the right choice. can anyone recommend a site for me?

    By Blogger Unknown, at 5:56 PM  

  • http://en.wikipedia.org/wiki/Customer_Identification_Program

    as far as patriot act is concerned

    By Anonymous Anonymous, at 11:40 PM  

  • I've been with ETrade for a few months now and am ready to dump them. As others have posted, their quick transfer takes 5-8 days. Typically 3 days for a bank to bank transfer then they hold your money for 4 days before you can invest it. I have submitted several support tickets asking why and have not received an answer. I get some form looking bs response giving me a few links. Their customer service is terrible.

    By Anonymous Anonymous, at 6:51 PM  

  • The week of 9/22/08 I spent 1 hour 40 minutes on the phone attempting to withdraw funds from a retirement account. It's 9/29/08 and I just spent another hour finding out there was no record of my previous call. The latest is that I have a confirmation number assuring me that the funds in my retirement account will be wired to my personal bank account tomorrow. The funds could've been received today if call hadn't gone on for so long.

    By Anonymous Anonymous, at 3:05 PM  

  • ETRADE SUCKS. I WILL NEVER BE ETRADE AGAIN

    By Anonymous Anonymous, at 8:09 PM  

  • The term 'discount brokerage' pertains to any internet-based trading facility. It offers a "discount" relative to phone order placements or, even worse, one-on-one financial advisory. Of all the 'discount' brokers, ETrade considers itself a premium provider due to its purportedly superior informational services and trading tools. At the current pace of customer disservice, the only customers it'll have are its own employees. Good riddance I say.

    By Anonymous Anonymous, at 10:15 PM  

  • i just opened an Etrade account to see if i like the features and i don't like it.I opened it because of the research but my schwab account has more research than etrade does.The customer service is trash too.

    I have a SCOTTRADE and CHARLES SCHWAB
    account highly recommend them both.

    By Anonymous Anonymous, at 12:54 PM  

  • I am extremely frustrated with Etrade. I am college student that deposited $500.00 last year and has been begging etrade for 7 months to return my funds to me. 7 months later, numerous phones calls and promises and no one at Etrade is calling me back on sending my own funds back to me.

    By Anonymous Anonymous, at 9:38 PM  

  • There is foolish company. I live in Belarus and I've received letter from their recently - they denied my application and documents without any explanations(((
    Waste of my time and money...

    By Anonymous Aliaksandr, at 2:34 PM  

  • I recently opened an account with etrade. I didn't put in any account information other than to start the account and have not deposited any money. I would like to get out before they try to bill me for hidden fees. Is there anything I need to know about closing the account. Is it bad to close it right after I opened it?

    By Anonymous Anonymous, at 4:58 PM  

  • I opened up my E*TRADE account long enough to transfer an opening $100 to create the account. My account is already frozen due to "fraudulent activity". No one in customer service knows how or whom can handle these issues. I finally got one gentleman who took the time to tell me the account has been closed and that money will be transfered to the original source account. I'll believe it when I see it. I've grown numb to E*TRADE's ability to act on pretty much anything.

    I suspect that they determine activity based upon the IP addresses that access their account. I have a few online banking applications that log into E*TRADE to pull data, i.e "Mint". I haven't had any issues whatsoever with any of my other banks that I pull data from. If this is the cause, it's just plain silly that E*TRADE would have such a policy. Don't they realize that people bank from their phones, home & work these days?

    It's my fault though. I had ample warning before creating an E*TRADE account from online research. I ignored all of the bad reviews E*TRADE gets all over the place online. I should have known better. I just couldn't believe a bank could really be that bad.

    By Anonymous Anonymous, at 8:05 PM  

  • I would call that breach of fiduciary duty.
    I never got any information about this neither from Etrade nor from Discover. I never consented to a transfer of my assets. If I wouldn’t have missed 9,000 dollars I would have probably never recognized that funds are missing if the sum would have been much smaller. So how many customers who have multiple accounts and CD’s don’t even know that their money is missing. If you have an old address on file you might never get a notification and your assets are lost forever. There is no note, no nothing on their website or in your account overview that assets have been move. As far as I know a bank cannot move customer funds without consent. They gave up custody of funds as they cannot access those funds anymore.
    I requested my funds back and they told me I have to take care about this on myself to get my assets back. I am close to hiring a lawyer to file a lawsuit after figuring out if they broke the law.
    In case they broke the law then I will let you know, we can file a class action lawsuit is unheard of and outrageous. I called Discover Bank in the meantime and they told me they would call back, now 3 days later I still haven't gotten a call and I have no idea on how to get my assets back.
    I am done with this bank and closing all my accounts, same with Discover, who assisted Etrade in this scam.

    So what comes next they move my money I have in CD to a commodities future traders without my knowledge and without my consent to gamble in the market?

    By Blogger Unknown, at 11:33 PM  

  • Downloading mp3 from youtube is simple being well because converting them headed for one-time arrangement.

    By Anonymous youtube converter, at 10:54 AM  

  • ETRADE charged me $20.00 reorganization fee for $.40 (forty cents) worth of a scam stock. I asked how they could charge me $20 and put a $.-20.00 balance for a worthless stock, they billed me like I was a debtor of the now defunct company. This took place in 2010, why trade with a company that will screw you any way they can. I placed 1500 trades with those assholes in this time period, and they reward me with this?

    Screw Etrade!
    That is why I moved to "Just2Trade and Fidelity, and Options House, these firms are not desperate to screw long-time investors, the way Etrade has done to me.


    TJ

    By Anonymous Anonymous, at 5:24 AM  

  • The chap is absolutely just, and there is no question.

    By Anonymous niroa, at 6:04 AM  

  • yes, in short etrade steals your money, so do not invest with etrade, invest your money somewhere else.

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  • By Blogger Unknown, at 8:25 PM  

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