E-Trade’s Trading Activity Slows Down In August In Comparison To Previous Year’s Surge

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ETFC: E*TRADE Financial logo
ETFC
E*TRADE Financial

Brokerage firm E*Trade Financial Corporation (NASDAQ:ETFC) saw a significant decline across most of its key monthly metrics in August 2016 in comparison to the same period last year. A slowdown in the Chinese economy in 2015 had given a major boost to trading activity in August; this tough comparison resulted in net new brokerage accounts, net new customer assets and daily average revenue trades (DARTS) seeing 48%, 31% and 20% respective declines in their volumes in the same month this year. Compared to July’s performance, the volumes have mostly remained neutral.

However, the brokerage’s recently launched Adaptive Portfolio is expected attract more customers over time. Additionally, a probable interest rate hike by the Fed in the next year is likely to boost the brokerage’s interest earning assets.

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