As a new E*trade user looking to immediately get down to business, you must first consider if that will actually be possible. Naturally, it takes time for funds deposited with brokers to reflect in your trading account, however, some brokers now offer instant deposits to increase the speed with your trading journey. So, are deposits instant with E*trade? No.
Presently, E*trade does not provide its customers with the instant deposit option. However, they have different methods available for depositing funds which determine how fast funds are made available to you. For instance, same day wire transfers take about 1 business day, while ACH electronic transfers take about 2-3 business days.
In this article I am going to be explaining the following:
- How long it takes before funds are made available to customers on E*trade.
- What cleared funds are
- How to deposit funds into your E*trade account.
How Long Does It Take Before Funds Are Available to Customers on E*Trade?
If you wish to deposit money into your E*trade account you should know that there are 5 ways of doing so, and whatever way you choose to use will affect how quickly or slowly your funds will be cleared and subsequently how quickly or slowly your funds will be made available to you. The time frame for the availability of funds slightly differ between existing customers and new customers.
Availability of funds for customers on E*trade.
- Electronic transfer money.
One of the ways you can deposit money into an E*trade brokerage account is via electronic transfer money. If you decide to make use of this method, all of your funds or some of your funds will be made available to you immediately. Whether all of your funds or some of your funds will be made available to you is dependent on the amount of cleared equity you have in your E*trade account.
If all of your funds are not made available to you immediately, the rest will be made available to you 3 business days after the day of deposit if you transferred the funds on or before 4 pm ET. This method of deposit is available to both new customers and existing customers.
- Direct deposit.
Another method with which you can use to deposit funds is via direct deposit. If you make use of this method to deposit funds, your funds will be made available to you on the same day you made the deposit. This method of depositing funds is available to only existing customers and not to new customers.
- Wire transfer.
This mode of deposit makes your funds available to you on the same day you make the deposit. However, this is if E*trade receives the funds before 6 pm ET. You should know that this method of deposit is also available to both new customers and existing customers.
- Deposit by check.
The fourth method of depositing funds is with a check. Using this method to deposit money into your E*trade brokerage account ensures all or some of your funds are available to you immediately. The amount which will be immediately available to you once again, depends on your cleared equity with E*trade.
If all of your funds are not made available to you immediately, the rest will be made available to you 4 business days after the deposit day. This method of deposit is made available to both new and existing customers.
- Transfer an account.
This method of depositing funds involves moving all your funds or securities from an external financial institution into E*trade. You can either “transfer an account” electronically or via mail. If you “transfer an account” electronically, it will take approximately 10 business days before the funds are available to you. However, if you do it via mail, the process takes about 3 to 6 weeks.
It will be important to remember that this method is only available to new customers.
FYI: The best way I've found to invest in ETFs is through M1 Finance. It's free and you even get an instant line of credit! Have a look here (link to M1 Finance).
What Are Cleared Funds?
When you deposit money from one account into another (example from your local bank to your E*trade brokerage account) it takes some time before the money is made available to you. This is because the money is being cleared. Cleared funds are simply cash that has been completely sent from one account (such as a bank account) to another account (such as a brokerage account).
Cleared funds are readily available for instant use. When you use a different bank to deposit money into another account it can extend the time it’ll take to clear the funds. Since E*trade does not offer the instant deposit feature, depositing into your brokerage account with E*trade is bound to take some time.
NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).
How To Deposit Money Into Your E*trade Account.
As I have explained to you before, there are various methods of depositing into funds into an E*trade account. In this article I will explain how to go about only 2 methods.
Wire transfer: if you wish to use this method, all you need to do is to print out the E*trade’s securities wire transfer form from E*trade’s website and fill it. You’ll then need to send the completed form to your external financial institution and request that they wire the funds to your E*trade account.
Electronic transfer money: if you wish to use this method to deposit funds, you should choose the appropriate accounts from the “from and to menus” and enter the amount you intend to transfer. Next, you’ll need to input the date you want the transfer to take place in the date field. Finally, click on the preview transfer and click on confirm.
Other deposit methods and how to go about them are, of course, available on the E*trade website. Feel free to check them out.
FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!
As I earlier told you, E*trade does not offer the instant deposit option. However, there are different ways to deposit money into an E*trade brokerage account, and the eventual availability of your money depends on what deposit method you choose. We have also looked at why it could take some time for funds to be cleared, and how you can deposit into E*trade with some methods.
If you have enjoyed this article, please share it with others. If you have any questions, please let me know in the comments and I will answer them as soon as I can.
Till next time…
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.