Buy Options | Online Options Trading | E*TRADE (2024)

Check the background of Morgan Stanley Smith Barney LLC on FINRA's BrokerCheckand see
the Morgan Stanley Smith Barney LLC RelationshipSummary.

Investment Products • Not FDIC Insured • No Bank Guarantee • May Lose Value

PLEASE READ THE IMPORTANT DISCLOSURES BELOW.

Banking products and services are provided by Morgan Stanley Private Bank, National Association, Member FDIC.

Important Note: Futures and options transactions are intended for sophisticated investors and are complex, carry a high degree of risk, and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure Statement for Futures and Options prior to applying for an account.You can also view the E*TRADE Futures LLC Financial Information and Disclosure Documents.

Supporting documentation for any claims will be provided upon request.

E*TRADE sometimes provides its customers with cash credits or special offers related to the opening or funding of accounts or other activities. E*TRADE credits and offers may be subject to U.S. withholding taxes and reporting at retail value. Taxes related to these offers are the customer's responsibility.E*TRADE reserves the right to change the offer terms or terminate the offer at any time without notice.

The material provided by Morgan Stanley Smith Barney LLC, Morgan Stanley or any of theiraffiliates, or by a third party not affiliated with Morgan Stanley is for educational purposes only and is not an individualized recommendation. This information neither is, nor should be construed as, an offer or a solicitation of an offer, or a recommendation, to buy, sell, or hold any security, financial product, or instrument discussed herein, or to open a particular account or to engage in any specific investment strategy.

The tools available on Power E*TRADE are not designed to yield variable results specific to your individual financial situation, risk tolerance, or investment goals, and none of the tools should be relied upon in any way to determine the suitability of an investment for you. Before buying or selling any investment, you should carefully consider your individual financial situation, investment objectives, risk tolerance, and liquidity needs, and consult licensed financial and tax professionals to determine for yourself whether the investment is suitable for you.

  1. E*TRADE from Morgan Stanley ("E*TRADE") charges $0 commissions for online US-listed stock, ETF, mutual fund, and options trades. Exclusions may apply and E*TRADE reserves the right to charge variable commission rates. The standard options contract fee is $0.65 per contract (or $0.50 per contract for customers who execute at least 30 stock, ETF, and options trades per quarter). The retail online $0 commission does not apply to Over-the-Counter (OTC) securities transactions, foreign stock transactions, large block transactions requiring special handling, futures, or fixed income investments. Service charges apply for trades placed through a broker ($25). Stock plan account transactions are subject to a separate commission schedule. All fees and expenses as described in a fund's prospectus still apply. Additional regulatory and exchange fees may apply. For more information about pricing, visit etrade.com/pricing.

  2. Each futures trade is $1.50 (per side, per contract, plus exchange fees), excluding cryptocurrency futures trades, which are $2.50 (per side, per contract, plus exchange fees). In addition to the per contract, per side commission, futures customers may be assessed additional fees, including applicable futures exchange and National Futures Association fees, as well as brokerage charges for execution of non-electronically traded futures and futures options contracts. These fees are not established by E*TRADE Futures LLC (“E*TRADE Futures”) and will vary by exchange.E*TRADE Futures may participate in U.S. futures exchange rebate programs pursuant to which E*TRADE Futures may receive remuneration based on the quantity or volume of orders submitted or trades executed by E*TRADE Futures customers on such exchanges.

  3. In StockBrokers.com's 2023 Online Broker Review of 17 firms across 196 different variables issued January 24, 2023, and based on evaluation conducted from January 1, 2022 – December 31, 2022, E*TRADE was awarded the #1 Investor App, and #1 Web Trading Platform. In addition, E*TRADE received five Best in Class distinctions: Overall Rating, Research, Mobile Trading Apps, Education, and Ease of Use. E*TRADE's star ratings for all category rankings out of 5: Overall (5.0 stars), Customer Service (4.0 stars), Commissions & Fees (4.5 stars), Research (5.0 stars), Platforms & Tools (4.5 stars), Mobile Trading Apps (5.0 stars), Investment Options (4.5 stars), Education (5.0 stars), Ease of Use (5.0 stars).Read the 2023 Online Broker Review.

  4. The Dime Buyback program does not apply to futures options. Exchange and regulatory fees still apply.

  5. Other than CME Equity Index contracts, which trade 24/6, all other futures markets are available through the E*TRADE platform nearly 24 hours a day, six days a week (Sunday 5 p.m. CT to Friday 4 p.m. CT). For more information on futures contract trade specifications, including, tick size, tick value, margin requirements, and trading hours, visit etrade.com/futures.

  6. To place a naked equity call or put trade (Levels 3 and 4) you must have margin equity of at least $5,000 in your margin account. At Levels 3 and 4, margin customers will be allowed to enter naked short put positions. These positions will be subject to the naked maintenance margin requirement rather than the cash-secured requirement.

Securities products and investment advisory services offered by Morgan Stanley Smith Barney LLC, Member SIPC and a Registered Investment Adviser. Commodity futures and options on futures products and services offered by E*TRADE Futures LLC, Member NFA Stock plan administration solutions and services offered by E*TRADE Financial Corporate Services, Inc., and are a part of Morgan Stanley at Work. Banking products and services provided by Morgan Stanley Private Bank, National Association, Member FDIC. All entities are separate but affiliated subsidiaries of Morgan Stanley. E*TRADE from Morgan Stanley and Morgan Stanley at Work are registered trademarks of Morgan Stanley.

System response and account access times may vary due to a variety of factors, including trading volumes, market conditions, system performance, and other factors.

Statement of Financial Condition | About Asset Protection | Account Agreements and Disclosures | Quarterly 606 Report | Business Resiliency Plan

©currentYear E*TRADE from Morgan Stanley. All rights reserved. E*TRADE Copyright Policy

As a seasoned financial expert with a comprehensive understanding of brokerage services, I'll delve into the intricacies of the article, shedding light on the concepts and entities mentioned.

The article revolves around Morgan Stanley Smith Barney LLC and E*TRADE, two significant players in the financial services sector. Morgan Stanley Smith Barney LLC is a member of the Financial Industry Regulatory Authority (FINRA), and interested parties can check its background on FINRA's BrokerCheck for regulatory information.

The Relationship Summary provided by Morgan Stanley Smith Barney LLC offers insights into their investment products. It's crucial to note that these products are not FDIC insured, carry no bank guarantee, and may lose value, emphasizing the risk associated with investment. Additionally, banking products and services are provided by Morgan Stanley Private Bank, National Association, which is a member of the FDIC.

The article mentions the complexity and risks associated with futures and options transactions, highlighting that they are intended for sophisticated investors. It advises potential investors to carefully read the Characteristics and Risks of Standardized Options and the Risk Disclosure Statement for Futures and Options before engaging in such transactions.

E*TRADE, a part of Morgan Stanley, is featured prominently in the article, boasting $0 commissions for online US-listed stock, ETF, mutual fund, and options trades. However, exclusions apply, such as Over-the-Counter (OTC) securities transactions, foreign stock transactions, and certain large block transactions.

The pricing structure for E*TRADE is outlined, including standard options contract fees, service charges for trades placed through a broker, and separate commission schedules for stock plan account transactions. The article emphasizes the need for investors to carefully consider their financial situation, risk tolerance, and investment goals before making decisions.

Awards and recognitions for E*TRADE are mentioned, highlighting its achievements in the 2023 Online Broker Review. The accolades include being awarded the #1 Investor App and #1 Web Trading Platform, along with several Best in Class distinctions across various categories.

The article touches upon the Dime Buyback program and provides information on the availability of futures markets through the E*TRADE platform nearly 24 hours a day, six days a week.

Requirements for placing naked equity call or put trades (Levels 3 and 4) are outlined, specifying the need for a minimum margin equity of $5,000 in the margin account. The mention of the naked maintenance margin requirement versus the cash-secured requirement adds depth to the understanding of trading levels.

Lastly, the article mentions the entities involved, including Morgan Stanley Smith Barney LLC, ETRADE Futures LLC, ETRADE Financial Corporate Services, Inc., and Morgan Stanley Private Bank, National Association. These entities are separate but affiliated subsidiaries of Morgan Stanley.

In conclusion, this article provides a wealth of information on the financial products, services, and risk considerations associated with Morgan Stanley Smith Barney LLC and E*TRADE, showcasing their offerings, pricing structures, and industry recognition. Investors are encouraged to carefully assess their individual financial situations and consult professionals before making investment decisions.

Buy Options | Online Options Trading | E*TRADE (2024)
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