In the 1990s, E-Trade was a rocket ship, with 500,000 accounts and a web site that eliminated the need for software. But when the dot-com bubble burst and trading activity slowed down, the company fell back to earth. However, the company has since returned to its former glory. Here are some of the most notable highlights. You can find out more about E-Trade by reading the following article.
The deal was announced on Thursday, with Morgan Stanley buying online brokerage firm E-Trade for $13 billion. The announcement sent shares of both companies soaring and Morgan Stanley’s stock falling nearly 4%. The merger is the latest in a wave of consolidation in the online brokerage industry. Charles Schwab recently acquired TD Ameritrade for $26 billion. E-Trade shares have gained more than 25% in recent months.
In addition to these three factors, E*TRADE also offers five third-party research reports. This includes consensus ratings from multiple third-party sources and individual analysts through TipRanks. Additionally, E*TRADE now features Morgan Stanley research with ratings and reports from more than 3,500 stocks. For investors, Trefis price estimates are also available on charts, with a link to the full analysis. Finally, E*TRADE’s web platform allows subscribers to view Bloomberg TV.
Another important consideration is the commission charges. E-Trade’s commissions are high, but they’re reasonable in comparison with other brokerages. For example, if you purchase OTC stock through E*TRADE, the commission will be $24.5 per order. If you are a regular trader, you will pay $4.95 for every OTC trade. Then, there are margin rates, and the margin interest may be a huge portion of your trading cost.
In 1994, E-Trade’s revenues grew to $11 million. This made it the fastest growing company in the United States. It was renamed Trade Plus to E*Trade Group, reflecting the increasing importance of its B2C business. Its revenues eventually exceeded the total revenue of Trade Plus. In 1996, E*Trade IPO’d, and was acquired by Telebanc Financial Corporation, Electronic Investing Corporation, and Tradescape Corporation.