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5 Benefits of Using eTrade Automatic Investing

May 4, 2025

person working - eTrade Automatic Investing

Consider this: you’ve finally started investing. You've watched a few YouTube tutorials, opened an online broker account, and placed your first trade. But instead of feeling joy or satisfaction, you feel overwhelmed. Sure, you understand the basics of buying and selling stocks, but there’s a lot of information to unpack. How do you know which stocks to buy? How to Use AI for Investing? What’s the best strategy to use? What’s your plan going forward? Before long, you’re stressed out.

Instead of making money, investing seems like a chore. So, you take a break. A few weeks pass, and you get back to it only to find the same old feelings of anxiety. You’ve fallen into the all-too-familiar cycle of getting stuck before you ever start. Sound familiar? If so, I have good news.

With eTrade automatic investing, you can take a lot of the guesswork out of investing, so you can focus on what matters: your goals. In this blog, we’ll explore five benefits of using eTrade automatic investing to help you get started on the right foot.

Once you're ready to begin your automatic investing journey with eTrade, GoMoon's handy tool can simplify the process even further. The AI-powered economic calendar can help you discover key market-moving events, so you know exactly what to expect as you start your automatic investing strategy.

Table of Content

What is eTrade Automatic Investing?

Automatic investing is a robo-advisory service offered by eTrade, a subsidiary of Morgan Stanley. This service allows investors to automatically invest their money in a diversified portfolio of stocks, bonds, and other assets based on their financial goals and risk tolerance. With eTrade Automatic Investing, you won’t need to select investments or manually manage the portfolio daily.

This service is designed to make investing easier, more consistent, and less stressful, especially for people who:

Don’t have time to monitor the markets constantly
Are new to investing and unsure where to start
Want a long-term, hands-off approach to growing their wealth

eTrade Automatic Investing Features

When you sign up for eTrade Automatic Investing, you answer a few questions about your investment goals (retirement, wealth building, major purchases, etc.) and risk tolerance. Based on your answers, eTrade builds a portfolio to suit your needs. You can set up regular contributions (weekly, monthly, etc.), so money flows consistently from your bank account into your investments.

Your money is spread across various asset classes and industries, reducing risk compared to investing in just one or two stocks. As the market shifts and your portfolio drifts from the original allocation, eTrade automatically adjusts the balance to maintain your risk level. Robo-advisors typically charge lower management fees than traditional financial advisors, making them cost-effective.

Why Is Automatic Investing Growing in Popularity in 2025?

The financial markets in 2025 are more volatile and interconnected than ever before. Events like tariff wars, fluctuating interest rates, technological disruptions (including AI-driven trading), and geopolitical tensions can cause rapid market swings. For the average investor, staying on top of all these factors is almost impossible.

Automatic investing helps remove the burden of constant monitoring and decision-making. Instead of trying to time the market or react emotionally to news headlines, investors can stick to a steady, rules-based approach. One of the biggest reasons for poor investment outcomes is emotional decision-making. Fear causes investors to sell during downturns, and greed pushes them to chase risky assets during booms.

Automatic investing eliminates this emotional rollercoaster. Investors maintain discipline regardless of market movements by setting up recurring investments and sticking to a pre-designed strategy. More investors are shifting toward long-term wealth-building rather than trying to “beat the market” in the short term.

Automatic investing aligns perfectly with strategies like dollar-cost averaging, which involves investing the same amount at regular intervals, regardless of market prices. Over time, this can reduce the impact of market volatility and lead to better average purchase prices. In the past, professional wealth management was only available to the wealthy.

Today, platforms like eTrade Automatic Investing make advanced portfolio management accessible to anyone, even with small starting amounts. Users can set up automatic contributions. Experts or intelligent algorithms manage portfolios. Fees are generally much lower than those of traditional financial advisors. This democratization of investing has opened the doors for younger investors, people new to the markets, and busy professionals who want to grow their money without the hassle.

5 Benefits of Using eTrade Automatic Investing

person working on laptop - eTrade Automatic Investing

1. Consistent, Emotion-Free Investing

eTrade Automatic Investing provides a systematic approach to investing that sidesteps emotional decision-making. Many investors impulsively react to swings in the market, such as panic selling when markets drop or overbuying when they surge. These emotional decisions can lead to losses or poor performance.

eTrade Automatic Investing removes this risk by automating contributions and portfolio management. Once you set your preferences, the platform continues to invest on your behalf—no need to react emotionally to daily market fluctuations. This consistency can improve long-term results by sticking to a disciplined plan, even during volatile market conditions.

2. Access to Professional-Level Portfolio Management

Previously, expert financial management was a luxury reserved for wealthy individuals who could afford private advisors. eTrade Automatic Investing brings professional-grade portfolio management to everyday investors. It uses advanced algorithms and expert strategies to allocate money across diversified assets.

It automatically rebalances your portfolio over time to maintain the right mix of investments. As markets shift or your goals change, eTrade Automatic Investing adapts your strategy without requiring manual effort. This means even beginners can benefit from sophisticated investment techniques previously available only to high-net-worth individuals.

3. Time-Saving and Hassle-Free

Researching investments, watching the markets, and rebalancing portfolios takes time most people don’t have. eTrade Automatic Investing offers a hands-free solution. Once you set your investment goals and risk tolerance, the system takes care of the rest.

There’s no need to constantly track news, monitor stock charts, or second-guess your decisions. For busy professionals, families, or anyone with a demanding schedule, eTrade Automatic Investing saves monthly hours. You can focus on your career, hobbies, or family while your investments work in the background.

4. Low Minimums and Affordable Fees

Another significant benefit of eTrade Automatic Investing is its accessibility. Unlike traditional financial advisors, which often require hefty account minimums, eTrade Automatic Investing is designed to work for investors with modest starting amounts.

This opens the door for younger investors, first-timers, and those who want to start small and grow over time. Fees are also lower than many human advisors, ensuring more of your money stays invested and can compound over time. This cost-effective approach makes wealth-building achievable for almost anyone.

5. Automatic Rebalancing and Goal Tracking

Market movements can cause your portfolio to drift away from your desired asset allocation. You might take on too much risk without regular rebalancing or miss growth opportunities. eTrade Automatic Investing solves this problem automatically. It regularly monitors and rebalances your portfolio to maintain your target asset mix.

This ensures you stay aligned with your risk tolerance and long-term goals. The platform also offers easy-to-use goal-tracking tools, so you can see how your investments are progressing and make adjustments if necessary. This built-in maintenance keeps your investments on the right track without requiring constant attention.

GoMoon: More Than Just an Economic Calendar

GoMoon transforms economic calendar data with AI-powered insights for smarter trading decisions. Our platform analyzes global events and rates their market impact on a scale of 1-10, helping you understand how they'll affect various assets. We've packed everything traders need: Live economic event streaming, custom notifications, and historical event replay with TradingView charts. What sets us apart is our comprehensive approach to event analysis.

Whether you're tracking the impact of major economic announcements or comparing forecast data with actual outcomes, GoMoon provides clear, actionable insights. You can personalize your calendar, stream live meetings directly on the platform, and analyze historical events like the dot-com bubble or the COVID-19 crash to understand market reactions better. GoMoon clarifies the complex world of economic events for traders seeking data-driven decisions. Get started for free to get AI-powered economic insights today.

5 Common Mistakes New Investors Make and How to Avoid Them With eTrade Automatic Investing

man working - eTrade Automatic Investing

1. Stop Trying to Time the Market

Many new investors try to guess when to buy low and sell high. This often leads to missed opportunities or buying at the wrong time because short-term market movements are unpredictable, even for professionals. eTrade Automatic Investing helps by using a long-term, consistent investment strategy.

Instead of trying to time the market, it automatically invests at regular intervals, known as dollar-cost averaging, reducing the risk of bad timing. GoMoon complements this by analyzing how macroeconomic events might impact markets in the longer term. GoMoon’s AI-driven insights help traders and investors understand broader economic trends rather than chasing short-term price swings.

2. Don’t Put All Your Eggs in One Basket

New investors often put all their money into a single stock or sector. If that stock or sector underperforms, they can face significant losses. eTrade Automatic Investing builds diversified portfolios across asset classes like stocks, bonds, and ETFs. This lowers the risk because gains in one area can offset poor performance in another.

GoMoon helps traders spot diversification opportunities by tracking how economic events affect various markets and sectors. This allows them to make smarter diversification choices alongside automated portfolios.

3. Stop Letting Emotions Drive Your Decisions

Fear and greed often lead new investors to panic-sell when markets fall or chase trends with high prices. eTrade Automatic Investing removes emotional decision-making by managing your investments systematically.

GoMoon’s real-time event impact scoring reminds traders of the broader context behind market movements. This helps users stay calm during volatility by assisting them to understand whether news events justify significant changes in their investment approach.

4. Don’t Ignore Fees and Costs

High fees can quietly erode investment returns over time, but beginners often overlook them. eTrade Automatic Investing charges lower costs than traditional advisors while offering professional portfolio management.

GoMoon’s analysis tools let traders factor in fee impact when making decisions, helping them avoid investments where costs could eat into potential gains.

5. Don’t Forget to Adjust to Life Changes

Your investment strategy should also adjust as your financial goals change (buying a house, retirement, etc.). Many beginners forget to reassess their strategy as life evolves. eTrade Automatic Investing allows for easy updates to your portfolio goals and risk tolerance whenever your situation changes.

GoMoon tracks macroeconomic shifts and market risks, providing AI-powered notifications that help traders decide when a reassessment might be wise, even if they use a mostly automated strategy.

5 Benefits of Using eTrade Automatic Investing

Table of Content

What is eTrade Automatic Investing?

eTrade Automatic Investing Features

Why Is Automatic Investing Growing in Popularity in 2025?

Related Reading

5 Benefits of Using eTrade Automatic Investing

1. Consistent, Emotion-Free Investing

2. Access to Professional-Level Portfolio Management

3. Time-Saving and Hassle-Free

4. Low Minimums and Affordable Fees

5. Automatic Rebalancing and Goal Tracking

GoMoon: More Than Just an Economic Calendar

5 Common Mistakes New Investors Make and How to Avoid Them With eTrade Automatic Investing

1. Stop Trying to Time the Market

2. Don’t Put All Your Eggs in One Basket

3. Stop Letting Emotions Drive Your Decisions

4. Don’t Ignore Fees and Costs

5. Don’t Forget to Adjust to Life Changes

GoMoon: More Than Just an Economic Calendar

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Use Our AI-powered Economic Calendar Tool for Free Today

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