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E*TRADE Financial: Client Participation and Advancements Are Key

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May. 17 2018, Updated 6:34 a.m. ET

A look back

E*TRADE Financial (ETFC) saw strong performance among its business activities in the first quarter. The company’s strong performance is mainly attributable to higher trading volumes as well as anticipation by market participants regarding the Federal Reserve’s decision regarding interest rate hikes. E*TRADE reported 60,000 net new brokerage accounts in the first quarter.

E*TRADE saw significant customer participation, which also helped the brokerage company report strong numbers. The company’s clients were primarily benefited by its risk management infrastructure. The company’s competitors (XLF) such as TD Ameritrade Holding (AMTD), Charles Schwab (SCHW), and Interactive Brokers (IBKR) benefited from volatility in the first quarter.

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Advancements in tools

E*TRADE’s innovation strategy related to its products could improve the company’s results moving forward. These advancements would prove beneficial to the company’s clients, which could help the company increase its customer base.

In April, E*TRADE closed the TCA (Trust Company of America) acquisition. Moving forward, E*TRADE’s performance is expected to depend on the industry-wide environment. Any pricing actions adopted by the company’s competitors would have an impact on its financial results. Other global factors like interest rates and trade wars would also affect brokerage companies.

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