Learning how to buy and sell investments is one of the first steps toward building long-term wealth. Fortunately, E*TRADE makes the process straightforward, whether you’re investing in individual stocks or ETFs on ETRADE.
In this guide, you’ll learn how to place your first buy order, monitor your investments, and sell shares when the time is right.
Why Invest in Stocks and ETFs on ETRADE?
E*TRADE allows investors to trade thousands of stocks and exchange-traded funds (ETFs) from a single platform. Whether you’re investing for retirement, building a diversified portfolio, or simply getting started, buying ETFs on ETRADE can provide an easy way to gain exposure to different sectors and markets.
If you’re a beginner, the platform also offers a clean interface and commission-free online trading for most U.S. stocks and ETFs.
How to Buy Stocks and ETFs on ETRADE
Buying your first investment only takes a few minutes.
Step 1: Open the Trade Screen
From the E*TRADE app, tap Trade at the bottom of the screen.
The security type will already be set to Stocks, and you’ll see a field labeled Symbol.
Step 2: Search for the Investment
Enter the ticker symbol of the stock or ETF you want to purchase.
If you don’t know the ticker, simply type the company name instead. For example, typing Nvidia will display its ticker symbol, NVDA.
Select the investment from the search results to continue.
Step 3: Review Your Buying Power
After selecting the investment, you’ll see several important details, including:
- Your brokerage account
- Net account value
- Cash available for investment
- Current market price
- Bid and ask prices
The most important figure is Cash Available for Investment, as this represents the money you can use to place your order.
Step 4: Enter Your Order
Next, complete the order details.
Order Type: Leave it set to Buy.
Quantity: Enter the number of shares you want to purchase. Keep in mind that E*TRADE does not currently offer fractional shares, so you’ll need to buy whole shares.
Step 5: Choose the Price Type
One of the most important settings is Price Type.
For beginners, a Market Order is usually the simplest choice. A market order purchases the investment at the current market price as soon as possible.
You’ll also notice several other order types, including:
- Limit Order
- Stop Order
- Stop Limit
- Trailing Stop
These are designed for more advanced trading strategies. If you’re investing for the long term, sticking with a market order keeps the process simple.
Step 6: Leave the Order Term as Good for Day
The default order term is Good for Day, meaning the order expires at the end of the trading day if it isn’t executed.
Since market orders are generally filled almost immediately, most beginners won’t need to change this setting.
Step 7: Preview and Place Your Order
Tap Preview to review every detail before submitting the trade.
You’ll see information including:
- Account number
- Buy order
- Investment symbol
- Number of shares
- Price type
- Estimated commission
- Estimated total cost
If everything looks correct, tap Place Order.
Once the order is executed, you’ll receive a confirmation screen with your order number and trade details.
Congratulations—you’re officially an investor.
Tracking Your Stocks and ETFs on ETRADE
After purchasing ETFs on ETRADE or stocks, you can monitor everything from your portfolio.
Navigate to:
Accounts → Your Brokerage Account
The Portfolio tab displays:
- Total account value
- Daily gains or losses
- Overall gains since investing
- Cash balance
- Open orders
Each investment also shows:
- Current price
- Daily performance
- Total gain or loss
Selecting any position provides additional information such as:
- Number of shares owned
- Average purchase price
- Historical price chart
You’ll also find other useful sections:
- Balances for available cash
- Orders for pending and completed trades
- Transactions for your complete account history, including purchases, sales, deposits, and dividends
For most investors, the Portfolio tab becomes the primary place to monitor ETFs on ETRADE and other holdings.
How to Sell a Stock or ETF
Selling investments follows a process similar to buying.
Step 1: Select Your Investment
Open your portfolio and tap the stock or ETF you want to sell.
A menu will appear with several choices, including:
- Details
- Buy
- Sell
- View Tax Lots
- Set Alert
Choose Sell.
Step 2: Check the Share Quantity Carefully
This is one area where beginners should pay close attention.
E*TRADE automatically fills in the quantity with all shares you currently own.
If you want to sell only part of your investment, update the quantity before continuing.
For example, if you own 100 shares but only want to sell one, be sure to change the quantity accordingly.
Step 3: Keep the Order Simple
Leave the following settings unchanged:
- Price Type: Market
- Term: Good for Day
Tap Preview to continue.
Step 4: Understand Tax Lots
If you’ve purchased the same stock or ETF multiple times, E*TRADE will display a notice explaining how shares are selected for sale.
By default, the platform uses FIFO (First In, First Out).
That means the oldest shares are sold first.
For most long-term investors, the default setting works well and doesn’t require any changes.
Step 5: Complete the Sale
Review the preview screen, which includes:
- Account
- Sell order
- Number of shares
- Market order
- Estimated proceeds
- Estimated commission
If everything is correct, tap Place Order to complete the sale.
Tax Considerations When Selling Investments
Selling investments may create a taxable event.
If you sell shares for a profit:
- Shares held for less than one year are generally taxed as short-term capital gains.
- Shares held for more than one year typically qualify for lower long-term capital gains tax rates.
Because taxes can affect your overall returns, many long-term investors avoid unnecessary selling whenever possible.
Tips for Long-Term Investing
While it’s important to understand how selling works, successful investing isn’t about trading constantly.
Many experienced investors focus on:
- Buying quality companies and diversified ETFs
- Holding investments for years instead of weeks
- Allowing compound growth to work over time
- Avoiding emotional buying and selling
The fewer unnecessary trades you make, the more opportunity your investments have to grow.
Final Thoughts
Learning how to buy and sell ETFs on ETRADE is a valuable skill for every new investor. The buying process is quick, the selling process is straightforward, and the platform provides all the tools needed to monitor your portfolio.
For most beginners, the best approach is to focus on purchasing quality investments, reviewing your portfolio periodically, and giving your money time to grow. Understanding how to trade ETFs on ETRADE is just the beginning of building a successful long-term investment strategy.
