E-Trade’s Monthly Brokerage Metrics: Trading Activity Grows Impressively In October After Remaining Subdued For Most Of The Year

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

Brokerage firm  E*Trade Financial (NASDAQ:ETFC) reported an impressive growth across its key monthly metrics in October. Trading volumes, which had continued to decline since the beginning of 2016, have seen a 17% year-over-year and 2% sequential increase. The acquisition of OptionsHouse and improvement in the U.S. economy contributed to a significant increase in brokerage accounts and trading volumes. We believe the volatility in the near term will be driven due to the recent U.S. elections and the impact of its results on the overall industry. This will likely attract investors’ attention and hence boost trading revenue for the company.

Total customer cash and deposits have continued to grow at a phenomenal rate over the year. This is possibly due to the impact of Fed rate hike in December 2015. The interest earning assets segment, which contributes around 60% of the the company’s overall revenue, is likely to continue sustained growth momentum from a possible rate hike in early 2017. Additionally,  the introduction of E-Trade’s robo-advisory service will also propel the growth in the customer assets.

 

 

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