Josh Stern

Why the E*Trade Shorts Have It Wrong

The ETrade model of combining a fully web-enabled electronic bank and discount brokerage in one entity offers a lot money management time convenience and cost/interest savings. Highly recommended even to traders who place most of their transactions at another brokerage.

E*Trade Total Client Asset Gain Trails S&P500 In April

ETFC has heavily promoted its roster of good cash mgmt. options over the last year - e.g. 5% savings, free high interest checking, etc. I'd guess that retail investors lagged because they were significantly in cash. ETFC makes money on interest spreads with the cash, and more funds currently in cash also means more trades are required to reinvest. Besides all that, it is possible to debit Fed and State taxes directly from ETFC brokerage accounts...taking those things all together, I would be cautious about interpreting this as bearish for ETFC income.