E*TRADE User Alleges Repeated Account Locks on Withdrawal

A recent Trustpilot review has raised concerns about withdrawal delays at E*TRADE, a well-known brokerage. The reviewer claims that after depositing $1,200 to test fund accessibility, their account was locked for consecutive 3-day periods when they attempted to wire the money out. The user stated, 'Just like most everyone else, when I went to wire it out of the account they locked my account for "3 days" and then another "3 days" and then another "3 days"... at this point I'm assuming it will be months like everyone else.' They expressed relief at not depositing a larger amount, as they originally considered investing six figures. The review also criticized the Power E*TRADE Pro trading platform, calling it 'God Awful' and suggesting it was built by a third-grader.

While this is a single user's account, repeated account freezes during withdrawal requests are a common red flag in the trading industry, often signaling liquidity issues or internal policies that delay client funds. However, E*TRADE is a regulated broker, and such delays could also be due to standard security checks or administrative holds. The user's claim that 'everyone else' experiences similar issues suggests a potential pattern, but without additional evidence, it remains an allegation.

For traders, this highlights the importance of understanding a broker's withdrawal procedures before committing large sums. It's advisable to test with small amounts, as this user did, and to verify the broker's regulatory status and complaint history. If you encounter prolonged withdrawal delays, you should contact the broker's customer support, escalate to a formal complaint, and, if unresolved, reach out to the relevant financial regulator.

This report is based solely on the Trustpilot review and has not been independently verified. E*TRADE has not yet responded to this specific complaint. Traders should always exercise caution and conduct thorough due diligence when choosing a brokerage, and be aware of potential warning signs like unexplained account restrictions.