How E*TRADE Plans to Improve Businesses in 2018


Feb. 7 2018, Updated 11:40 a.m. ET

Derivatives traders

E*TRADE (ETFC) is maintaining its focus on the Active Traders segment and plans to generate revenues from its derivatives traders. In 2017, the company’s business was positively impacted by the OptionsHouse integration.

However, the company’s Power E*TRADE model was also a major contributor, and it plans to improve the Active Traders segment in 2018. E*TRADE also plans to focus on its offerings moving forward in 2018.

On February 7, 2017, E*TRADE’s enterprise value stood at ~$13.7 billion. Among its peers (XLF), Interactive Brokers Group (IBKR), Charles Schwab (SCHW), and TD Ameritrade (AMTD) had enterprise values of ~-$19.7 billion, ~$48.4 billion, and ~$21.4 billion, respectively.

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Targeting corporates

E*TRADE targets its Corporate Services business by maintaining its focus on building its corporate client base. The company also plans to attract more participants toward its platform and product offerings.

According to E*TRADE’s management, the company’s Corporate Services business is in a good position due to the performance of the Equity Edge Online platform. Customer satisfaction and customer service are also major contributors to the success of the business.

E*TRADE plans to launch new digital tools moving forward. In October 2017, E*TRADE made an announcement regarding the acquisition of Trust Company of America (or TCA). The company plans to accelerate TCA’s growth with the help of its platform and support. E*TRADE has a positive outlook on this acquisition and expects it could benefit both companies.

E*TRADE added that in 2018, it would maintain its focus on streamlining its customers’ experience.


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