Profile: E*TRADE Financial Corp (ETFC.O)
10 Jul 2014
E*TRADE Financial Corporation (E*TRADE), incorporated in 1982, is a financial services company, which provides online brokerage and related products and services primarily to individual retail investors under the brand E*TRADE Financial. The Company also provides investor-focused banking products, primarily sweep deposits and savings products, to retail investors. E*TRADE operates in two segments: trading and investing and balance sheet management. Trading and investing includes retail brokerage products and services; investor-focused banking products; market making, and corporate services. Balance sheet management includes the management of asset allocation and credit, liquidity and interest rate risk; loans previously originated or purchased from third parties, and customer cash and deposits. The Company’s subsidiaries include E*TRADE Bank, which is a federally chartered savings bank that provides investor-focused banking products to retail customers nationwide and deposit accounts insured by the Federal Deposit Insurance Corporation (FDIC); E*TRADE Securities LLC, which is a registered broker-dealer and it is the primary provider of brokerage products and services to the Company’s customers; E*TRADE Clearing LLC, which is the clearing firm for its brokerage subsidiaries and its main purpose is to transfer securities from one party to another, and E*TRADE Capital Markets, LLC, which is a registered broker-dealer.
Trading and Investing
E*TRADE’s trading and investing segment offers a range of financial products and services to individual retail investors. The trading products and services include automated order placement and execution of United States equities, futures, options, exchange-traded funds and bond orders; FDIC insured sweep deposit accounts that automatically transfer funds to and from customer brokerage accounts; access to E*TRADE Mobile, which allows customers to trade stocks and transfer funds between accounts, through iPhone, iPad, Android or BlackBerry smartphone; use of Power E*TRADE Pro, its desktop trading software for qualified active traders, which provides customers with CNBC TV; an open applications programming interface (Open API) for third-party and independent software developers, which allows customers to have access to technical information and documentation, reference guides, and other resources to help network external applications and programs with its active trader platform; two-second execution guarantee on all Standard & Poor’s (S&P) 500 stocks and exchange-traded funds; margin accounts allowing customers to borrow against their securities; cross-border trading, which allows customers residing outside of the United States to trade in United States securities; access to international equities in Canada, France, Germany, Hong Kong, Japan and the United Kingdom and foreign currencies, including the Canadian dollar, Euro, Hong Kong dollar, Yen and Sterling, and research and trading tools, which assists customers with identifying investment opportunities, including Analyst and Technical research, Consensus Ratings, and market commentary from Morningstar, Dreyfus and BondDesk Group.
The long-term investing products and services include use of the Investor Resource Center, which provides an aggregated view of the investing tools, market insights, independent research, education and other investing resources; flexible advisory services through Online Advisor, its investment advice tool designed to provide investors with actionable investment guidance, including recommended asset allocations ranging from fully self-directed investing to 100% discretionary portfolio management from an registered investment advisor; fixed income tools in its Bond Resource Center aimed at helping customers identify, evaluate and implement fixed income investment strategies, and retirement planning resources, including Retirement QuickPlan, that provides customers to get on track with personal retirement savings goals and access to Chartered Retirement Planning Counselors. It also includes managed investment portfolio advisory services with a registered investment advisor; unified managed account advisory services with a registered investment advisor, which provides customers the opportunity to work with a dedicated investment professional; no fee and no minimum individual retirement accounts, plus, Rollover Specialists to guide customers through the rollover process; access to more than 1,000 non-proprietary exchange-traded funds and over 8,000 non-proprietary mutual funds; investing and trading educational services through online videos, Web seminars and Web tutorials, and FDIC insured deposit accounts, including checking, savings and money market accounts. The Company offers software and services for managing equity compensation plans for corporate customers.
Balance Sheet Management
The balance sheet management segment consists of the management of the Company’s balance sheet, focusing on asset allocation and managing credit, liquidity and interest rate risks. The balance sheet management segment manages loans previously originated or purchased from third parties, as well as the customer cash and deposits, which originate in the trading and investing segment.
E*TRADE Financial Corp
1271 AVENUE OF THE AMERICAS FL 1
NEW YORK NY 10020-1302