Profile: E*TRADE Financial Corp (ETFC.O)
26 Sep 2016
E*Trade Financial Corporation, incorporated on September 4, 2003, is a financial services company. The Company provides 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, to retail investors. The Company operates in two segments: trading and investing, and balance sheet management. The Company's hybrid service delivery model is delivered through various digital platforms: E*TRADE.com, E*TRADE Mobile and E*TRADE Pro. E*TRADE.com is its site that provides customers with tools, guidance, actionable ideas, research and education to take control of their finances. E*TRADE Mobile offers trading applications for various smartphones and tablets. E*TRADE Pro is its trading platform for active and elite traders, with tools and customizable layouts.
The Company's subsidiaries include E*TRADE Securities LLC (E*TRADE Securities), E*TRADE Clearing LLC (E*TRADE Clearing), E*TRADE Bank and E*TRADE Financial Corporate Services. E*TRADE Securities is a broker-dealer and is a provider of brokerage products and services to the Company's customers. E*TRADE Clearing is the clearing firm for the Company's brokerage subsidiaries and its main purpose is to clear and settle securities transactions for customers of E*TRADE Securities. E*TRADE Bank is a federally chartered savings bank, which provides the Company's customers with Federal Deposit Insurance Corporation (FDIC) insurance on a certain amount of customer deposits and provides other banking products to its customers. E*TRADE Financial Corporate Services is a provider of software and services for managing equity compensation plans to the Company's corporate customers.
Trading and Investing
The Company's trading and investing segment offers a suite of financial products and services to individual retail investors. The Company's products and services include trading, margin and cash management; retirement, investing and saving, and corporate services. Its trading, margin and cash management delivers automated order placement and execution. The Company offers its customers a range of investment vehicles including the United States equities, American depositary receipts (ADRs), bonds, futures, options, exchange-traded funds (ETFs), including over 110 commission-free ETFs from leading independent providers, and over 7,500 non-proprietary mutual funds. Its trading tools and vehicles are supported by guidance when customers need it, including fixed income and derivative specialists available on-call to guide customers, independent research and analytics, live and on-demand education resources, strategies and trading ideas and comprehensive screeners for asset classes. Cash management includes FDIC insured deposit accounts, including checking, savings and money market accounts.
The Company offers account types and services: Individual Retirement Accounts (IRAs) with no annual fees and no minimums, along with specialists to guide customers through the rollover process; Managed Investment Portfolio advisory services from an affiliated registered investment advisor, with an investment of approximately $25,000 or more, which provides one-on-one professional portfolio management, and Unified Managed Account advisory services from an affiliated registered investment advisor, with an investment of over $250,000 or more, which provides customers the opportunity to work with a investment professional to obtain an approach to asset allocation, investments and portfolio rebalancing. The Company also offers various digital tools, including OneStop Rollover, Retirement Center, Investing Insights, Bond Resource Center, TipRanks and life-stage planning resources. It also offers guidance from its financial consultants and Chartered Retirement Planning Counselors at its approximately 30 regional branches across the country, or through its over two national branches through phone and e-mail to receive complementary portfolio reviews and personalized investment recommendations.
The Company's corporate services business is a driver of brokerage account and asset growth, with approximately 1.4 million individual stock plan accounts. The Company offers software and services for managing equity compensation plans for corporate customers through the Equity Edge Online platform: management of employee stock option plans, employee stock purchase plans and restricted stock plans with fully-automated administration, as well as accounting, reporting and scenario modeling tools; integrated stock plan solutions including multi-currency settlement and delivery, disbursement in over 30 countries, streamlined tax calculations and country code compatibility; stock plan and investing education, restricted stock sales support, custom 10b5-1 plan design and implementation, securities and exchange commission (SEC) filing assistance, and stock plan service representatives with live support in over six languages in addition to phone-based translation in approximately 140 languages.
Balance Sheet Management
The Company's balance sheet management segment focuses on asset allocation and managing credit, liquidity and interest rate risks. The balance sheet management segment manages its legacy loan portfolio, as well as agency mortgage-backed securities, and other investments. Funding sources consist primarily of deposits and customer payables, which originate in the trading and investing segment.
E*TRADE Financial Corp
1271 Avenue of the Americas Fl 1
NEW YORK NY 10020-1302
Company Web Links
- BRIEF-E*TRADE Financial names Karl Roessner as CEO
- BRIEF-E*Trade Financial announces pricing of preferred stock
- BRIEF-E*trade Financial to propose offering of preferred stock
- BRIEF-E*TRADE Financial Corp July daily average revenue trades of 147,100
- E*Trade to buy online brokerage OptionsHouse for $725 mln