E-Trade Financial Corporation (stylized as E*TRADE) is a financial services company headquartered in New York City, United States. It is an online discount stock brokerage firm for self-directed investors. Investors can buy and sell such securities as stocks, bonds, options, mutual funds, and exchange-traded funds via electronic trading platforms or by phone. E-Trade Financial also provides banking services to retail investors, such as sweep deposits and savings products.
E-Trade Financial operates directly and through numerous subsidiaries. The most significant of its subsidiaries are E-Trade Bank, E-Trade Securities LLC, and E-Trade Clearing LLC.
As of December 31, 2015, the company had 3,213,541 brokerage accounts and a total margin receivables balance of $7.4 billion.
In 2015, the company processed 155,470 daily average revenue trades.
In 2015, 76% of net revenue was from interest income and 24% of net revenue was from fees and commissions.
The company has 30 branches.
The company's primary offices are in Alpharetta, Georgia; Jersey City, New Jersey; Arlington, Virginia; Sandy, Utah; Menlo Park, California; and New York, New York.
In 1982, William A. Porter and Bernard A. Newcomb founded TradePlus in Palo Alto, California with $15,000 in capital. In 1991 Porter and Newcomb founded a new company, E-Trade Securities, Inc., with several hundred thousand dollars of startup capital from TradePlus. E*Trade offered its trading services via America Online and Compuserve. In 1994 its revenues neared $11 million, up from $850,000 in 1992.
By June 30, 1996, the company had 73,000 customers and processed 8,000 trades per day, with quarterly revenue of $15 million.
In August 1996, the company executed an initial public offering.
In 2001, the company acquired Web Street Securities, a publicly traded online brokerage firm, for $45 million in stock. Web Street had offices in Beverly Hills, Boston, Denver, and San Francisco.
In 2003, Toronto-Dominion Bank held talks to merge its TD Waterhouse discount brokerage with E*Trade, but the two sides could not come to an agreement over control of the merged entity. TD Waterhouse wound up merging with Ameritrade to form TD Ameritrade. After the merger, E*Trade continued talks to merge with TD Ameritrade but the two sides could not agree on price and governance rights.
In August 2005, E*Trade Financial acquired Harrisdirect, formerly a discount brokerage service of Bank of Montreal. Two months later, E*Trade acquired Brown & Company (aka BrownCo), formerly a discount brokerage service of JPMorgan Chase & Co., for $1.6 billion in cash.
Subprime portfolio divestiture in 2007
In July 2007, Etrade Australia, which was a separately operated company owned 6% by E*Trade Financial, was purchased by Australian ANZ Bank for $432 million.
On November 29, 2007, E-Trade announced a transaction in which Citadel LLC invested $2.5 billion in cash in exchange for the company's securitized subprime mortgages, 12.5% senior unsecured notes, and 84,687,686 shares of common stock (equal to 19.99% of the then currently outstanding shares). The transaction removed the assets with the greatest market risk from E-Trade's consolidated balance sheet — the $3 billion asset-backed securities (ABS) portfolio, including its ABS collateralized debt obligations(CDOs) and second lien securities. This resulted in a net $2.2 billion reduction in assets on the company's balance sheet. Citadel received a seat on E-Trade Financial's Board of Directors and Mitch Caplan resigned as E-Trade's CEO. Although E-Trade's management admitted that the deal was costly for the company, it removed the risk associated with the subprime investments and resulted in an infusion of $2.5 billion in cash.
Post subprime reorganization
In November 2007, E*Trade revoked the brand name license from SBI E*Trade Securities in Japan.
In March 2008, E*Trade named Donald Layton, formerly JPMorgan Chase vice chairman, as its new CEO. Layton had joined E*Trade's board of directors in November 2007, at the same time as the Citadel deal.
In July 2008, E*Trade sold its Canadian division to Scotiabank for CAD$444 million, as part of a program to stabilize the company.
In December 2009, Robert Druskin, a former chief operating officer of Citigroup Inc. was named interim CEO and chairman.
On March 22, 2010, Steven Freiberg, former co-CEO of Citigroup's global consumer group and former head of the bank's credit card unit, was named as E*Trade's new CEO while Druskin continued in his role as board chairman. The company also announced it would seek shareholder approval for a 1-for-10 reverse stock split.
On January 17, 2013, Paul T. Idzik was appointed CEO. Idzik had previously been Group Chief Executive of DTZ and also served ten years at Barclays bank.
In July 2016, E*Trade accounted that it will acquire Aperture New Holdings Inc., the parent company of OptionsHouse, for $725 million.
On September 12, 2016, Karl A. Roessner was appointed CEO.
The company has received various awards, which are listed on its website.
"E*Trade Baby" Advertising Campaign
E*Trade Baby was an integrated advertising campaign that appeared in online, television, print, and social media.
The first E*Trade baby was Gregory Michael Miller, taken in March 2001.
In January 2008, E*Trade debuted advertisements during the Super Bowl featuring a talking baby in front of a web cam discussing investing and finance in an adult voice.
The "insufferable brat" returned the following year for Super Bowl XLVII, along with a Facebook page, updates on Twitter, and videos on YouTube. It is a 30-second "Talking Baby" advertisement. The E*Trade Baby demonstrates a "Save It" initiative that focuses on just how much money is at stake in hidden 401(k) account fees and offers a better approach: "come to E*TRADE, and Save It".
The E*Trade baby was voiced by comedian Pete Holmes.
The campaign was created by Tor Myhren, then of Grey Global Group.
In 2013, the company had over 64 million total views and over 26,000 subscribers on YouTube, more than 108,000 Facebook Baby and Corporate pages fans, and more than 17,000 Twitter followers.
On March 21, 2014, the company announced the end of the E*Trade baby via, a commercial which aired during March Madness.
|License||FINRA, SIPC, NFA : 0380377|
|Trading Platforms||E*TRADE Mobile, E*TRADE Website, E*Trade Pro, E*Trade FX, Market Trader|
|Bonuses & Discounts|
|Phone||1-800-387-2331, +1 678 624 6210|
|Address||Time-Life Building, New York City, United States|
I've used 5 online brokerage firms and in all 5 nothing went perfectly. Overall Etrade has the best platform. The problem is that they're just too expensive. Other than Etrade I've used Zecco, Tradeking, Merrill Edge. and Wells Fargo.
- easyTrading platform
- great investing tools
- free DRIPs
- free transfers to other banks (like a checkless check that is wired but takes 2-3 days)
- discussion forums
- too expensive
I tried to open an account with Etrade, they gave me a hard time for 3 weeks, held my $2500 deposit, would not return till finally the 3rd friday, was told it will be another week, going on 4 weeks. My account with TD ameritrade i can withdrawal anytime no probs. Horrible - back office, their issue with me about my address being a business address. I explain I travel and work out of town most of year did not want to use my residence since all my mails forward to me from my business address, they still denied me and still holding my deposits, they suck!!!
I must congratulate E-Trade in Manhattan for efficiency and courteous service. A good word specially for Mr. Magliano. Moreover, they do everything to please the client, including sometimes, by waiving fees.
Etrade's Pro team in Georgia has the best customer service in the Trading Industry. I can respect your anger dealing with some of the lower level Customer Reps who have no idea who you are. The Pro's Platform for the price of their commission structure for the Active Trader is incredible, you realize your going to have to pay $500 a month for a data-feed that crisp.
If you are having problems with Etrade, don't talk to the lower-tier Brokers, tell them you want to talk to someone like Chris Tyas who is what customer service and beyond is all about. Etrade lost's it's way but I think they are finally getting the message, you won't find any better Brokers in the industry than the long-time group near Atlanta, Georgia. I have been trading since 1986, Etrade was the first Broker who treated me great, you can get a problem resolution,, just ask for the A-Team in Georgia and they will fix the issue or give you two-hundred percent trying!
Trader Jack AttacK
I am not a US resident and have been an ETrade customer since 1997, actively trading the US stock market (both ways) since then. Couldn't be more satisfied, best broker by far, extremely fast executions, great tools, customer service has improved A LOT lately, etc.
I just can't understand why their own stock (ETFC) languishes the way it does. It used to be a very hot stock, and could double or triple easily.
I have an account with Etrade. I was referred over because they are supposed to be a good place to start trading on your own (vs using a house). I opened an account with $5k to play around with and noticed they were charging me $9.99 per trade. I had been told that my first 100 would be free. I called into Etrade and the gentleman who took my call said there was a $10k minimum for the free trades to take effect and once I moved another $5k over, they would honor it for the next 100 trades (I'd already made a few trades). I transferred over another $5k and they continued to charge me. When I called in, I was told they couldn't honor the free trades (Raymond). I escalated it to a manager (Kevin) who looked into and called me back and told me the only option would be for me to close my account and reopen it. Essentially, he couldn't help me and I have to pull the money out and move the money back in. So instead of just honoring the free trade promotion, they are making me deal with all of this extra work in order to access the promotion. Does anyone know of another platform that is easy to use and values their clients?
I got an offshore phone rep. after hours at Etrade. Schwab and Fidelity offer 24/7, stateside.
Etrade customer service people don't have any common sense. I really had bad experience with them. Over the past 13 years i did not have too many stock transactions,but for a few times i had interaction with the phone service people and i was extremely unhappy.
As a total beginner I started with ETrade Dec 2010. I really LIKE their desktop platform, "ETrade Pro". Because I am a software engineer and use so many features quite intensely on a 3-screen, 27" high definition video array, I tend to find little nuisance but harmless flaws which happen only under certain market circumstances over a period of hours. Last week I provided a description of the flaws and how to duplicate them. The flaws were gone Monday. I didn't see many other brokers with commissions less than the $ 7.99 I pay. And the ET elite customer service, which never keeps me waiting for more than 60 seconds, is an absolute pleasure to work with. I work on this platform 98% of all trading hours and enjoy it thoroughly. Would I switch to save a few bucks a trade ? Heck no. Would I change an always helpful ETrade elite customer service for an unknown ? Heck no. Why would I jump from something which works so well ?
We have taxable and IRAs/RothIRAs accounts at ETrade for roughly 10 years. Most things seem to be ok except for 2 recent "discoveries": 1) I accidentally discovered that they have my wife's DOB wrong (Etrade does not show account ownership details on their website) and 2) ACH transfer out is limited to $100K per day. Additionally, there's no way to verify that Etrade have my account beneficiaries captured correctly.
Etrade is the best. BEST CUSTOMER SERVICE!
I do agree that etrade has no customer service. I called for advisor question regarding one of the settlement I had, he actually told me that trade was transfer from different brokerage, and he has to go on vacaction tomorrow. So ask me to call back tomorrow. How stupid of the service is and all my trade in Etrade were trade from Etrade since I'm opened the account. That mean they don't have an accruacy account history, scary and terrible. I'm with Etrade for over 10 yrs, I'm an active trader. I'm about to leave to another brokerage, that's the reason I'm searching online to see who has the better rating.