{{Short description|American financial services company}} {{About|the financial services company|electronic trading|Electronic trading platform|East Trade Street in Charlotte, North Carolina|Trade Street}} {{Infobox company | name = E*TRADE from Morgan Stanley | logo = ETrade Logo.svg | logo_caption = Logo since January 1, 2022 | logo_size = 250px | type = Subsidiary | traded_as = {{NASDAQ was|ETFC}} | founders = {{ubl|William A. Porter|Bernard A. Newcomb}} | industry = Financial services | founded = {{Start date and age|1982}}, in Palo Alto, California, U.S. | hq_location = Arlington, Virginia, U.S.<ref>{{Cite web|url=https://about.etrade.com/contact-us|title=Contact Us|website=E*TRADE|accessdate=30 December 2022}}</ref> | key_people = Mike Pizzi (former CEO) | services = {{ubl|Stockbroker|Electronic trading platform}} | parent = Morgan Stanley | website = {{URL|etrade.com}} }} thumb|E-Trade Financial Center, San Francisco
'''E-Trade''' (stylized as '''E*TRADE''')<ref>{{Cite web | url=https://us.etrade.com/home | title=E*TRADE}}</ref> is an investment brokerage and electronic trading platform that operates as a subsidiary of Morgan Stanley.
==History== {{expand section|date=June 2024}} right|thumb|250px|E-Trade logo from February 3, 2008, to December 31, 2021 In 1982, physicist William A. Porter and Bernard A. Newcomb founded TradePlus in Palo Alto, California, with $15,000 in capital. In 1983, it launched its first trade via a Compuserve network. In 1992, Porter and Newcomb founded E-Trade and made electronic trading available to individual investors.<ref>{{Cite news | url=https://www.computerworld.com/article/1718072/sidebar-a-brief-history-of-etrade.html | title=Sidebar: A Brief History of ETrade | work=Computerworld | date=September 27, 2004}}</ref>
On August 16, 1996, the company (by then known as the '''E-Trade Financial Corporation''') became a public company via an initial public offering. The company sold 5,665,000 shares of its common stock for $10.50 per share under the stock ticker "ETFC" on the NASDAQ stock exchange.<ref>{{cite news | url=https://www.cnet.com/news/etrade-hits-wall-street/ |title=E*Trade hits Wall Street | work=CNET | date=August 16, 1996}}</ref> The company figured prominently in the dot-com bubble, as both a way to speculate in internet stocks and an internet stock itself.
In October 2020, the company was acquired by Morgan Stanley.<ref>{{cite news | url=https://nypost.com/2020/10/02/morgan-stanley-officially-closes-all-stock-etrade-takeover-deal/ | title=Morgan Stanley officially closes all-stock E*Trade takeover deal |first=Noah |last=Manskar | work=New York Post |date=October 2, 2020}}</ref><ref>{{cite news |last1=Hoffman |first1=Liz | title=Morgan Stanley to Buy Eaton Vance for $7 Billion |url=https://www.wsj.com/articles/morgan-stanley-to-buy-eaton-vance-in-deal-valued-at-7-billion-11602159806 |work=The Wall Street Journal | date=October 8, 2020 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.nytimes.com/2020/02/20/business/morgan-stanley-etrade.html | title=Morgan Stanley to Buy E-Trade | first1=Michael J. | last1=de la Merced | first2=Kate | last2=Kelly | first3=Emily | last3=Flitter | work=The New York Times | date=February 20, 2020 | url-access=limited}}</ref>
===Management history=== In November 2007, Mitch Caplan resigned as CEO and Citadel LLC received a seat on the board of directors of the company after Citadel invested $2.5 billion in the company to bolster its finances after it suffered losses due to the bursting of the 2000s United States housing bubble.<ref>{{Cite news |last=Robinson |first=Gwen |title=Subprime mortgage fears batter E-Trade | url=https://www.ft.com/content/19f09087-c74a-3215-9058-d7fec2324c2a |work=Financial Times | date=November 12, 2007 | url-access=subscription}}</ref><ref>{{cite press release | url=https://www.sec.gov/Archives/edgar/data/1015780/000095010307002929/dp07754_ex9901.htm | title=E*TRADE Financial Announces $2.5 Billion Investment Led by Citadel |publisher=E-Trade Financial |via=U.S. Securities and Exchange Commission |date=November 29, 2007}}</ref><ref>{{cite news |url=https://www.chicagotribune.com/news/ct-xpm-2007-11-30-0711291062-story.html |title=Citadel boosts E-Trade stake with $2.5 billion investment |first=Becky |last=Yerak |work=Chicago Tribune |date=November 30, 2007}}</ref>
In March 2008, E-Trade named Donald Layton, formerly JPMorgan Chase vice chairman, its new CEO. Layton had joined E-Trade's board of directors in November 2007, at the same time as the Citadel LLC deal.<ref>{{cite news |url=https://jp.reuters.com/article/idUSWNAS3265/ |title=E*Trade Chairman Layton adds CEO post | first=Joseph A. | last=Giannone | work=Reuters | date=March 2, 2008}}</ref><ref>{{Cite news | url=https://www.marketwatch.com/story/e-trade-names-layton-as-ceo-shares-rise-on-deal-speculation | title=E-Trade names Donald Layton as chief executive | first=John | last=Spence | work=MarketWatch | date=March 3, 2008}}</ref><ref>{{Cite news | url=https://www.wsj.com/articles/SB120450598417206517 | title=E*Trade, With Layton as CEO, Might Be Angling for a Sale | first=Susanne | last=Craig | work=The Wall Street Journal | date=March 3, 2008 | url-access=subscription}}</ref>
In December 2009, Robert Druskin, a former chief operating officer of Citigroup, was named interim CEO and chairman.<ref>{{cite news |url=https://www.sandiegouniontribune.com/sdut-e-trade-names-director-as-chairman-interim-ceo-2009dec21-story.html |title=E-Trade names director as chairman, interim CEO |agency=Associated Press |newspaper=San Diego Union Tribune |date=December 21, 2009}}</ref>
On March 22, 2010, Steven Freiberg was named CEO. Freiberg was the former co-CEO of Citigroup's global consumer group and the former head of its credit card unit.<ref>{{cite news | url=https://money.cnn.com/2010/03/22/news/companies/etrade_appoints_ceo/ | archive-url=https://web.archive.org/web/20180629182840/http://money.cnn.com/2010/03/22/news/companies/etrade_appoints_ceo/ | url-status=dead | archive-date=June 29, 2018 | title=ETrade names former Citigroup exec as CEO | first=Blake | last=Ellis | work=CNN | date=March 22, 2010}}</ref><ref>{{Cite news | url=https://www.wsj.com/articles/DJFHYW0020100322e63m00006 | title=E*Trade Hires Steven Freiberg As New CEO | work=The Wall Street Journal | date=March 22, 2010 | url-access=subscription}}</ref>
On January 17, 2013, Paul T. Idzik was appointed CEO. Idzik had previously been group chief executive of DTZ and also served ten years at Barclays bank.<ref>{{cite press release |url=https://www.businesswire.com/news/home/20130117006395/en/E*TRADE-Financial-Appoints-Paul-T.-Idzik-Chief |title=E*TRADE Financial Appoints Paul T. Idzik Chief Executive Officer |publisher=E-Trade Financial |via=Business Wire |date=January 17, 2013}}</ref>
In September 2016, Karl A. Roessner, E-Trade's general counsel since 2009, was appointed CEO.<ref name=optionshouse/>
On August 14, 2019, Michael Pizzi was appointed CEO.<ref>{{cite news | url=https://www.businessinsider.com/power-moves-of-the-week-etrade-riteaid-2019-8 | title=Here are the latest executive power moves that help explain everything that's going on at E*Trade, Rite Aid, and Yum! Brands | first=Christian | last=Wylonis | work=Business Insider | date=August 19, 2019}}</ref>
==Morgan Stanley acquisition== On February 20, 2020, Morgan Stanley announced the acquisition of E-Trade in an all-stock transaction valued at approximately $13 billion, the largest U.S. bank acquisition since the 2008 financial crisis.<ref>{{cite news |url=https://www.sec.gov/Archives/edgar/data/895421/000095010320003007/dp121635_ex9901.htm |title=Morgan Stanley to Acquire E*TRADE |publisher=U.S. Securities and Exchange Commission |date=February 20, 2020}}</ref> E*TRADE shareholders received 1.0432 Morgan Stanley shares per E-Trade share, representing a 30.7% premium. The deal closed on October 2, 2020, following Federal Reserve approval.<ref>{{cite news |url=https://www.nasdaq.com/articles/morgan-stanley-closes-acquisition-of-etrade-financial-quick-facts-2020-10-02 |title=Morgan Stanley Closes Acquisition of E*TRADE Financial: Quick Facts |work=Nasdaq |date=October 2, 2020}}</ref> At closing, E-Trade had 5.2 million client accounts and over $360 billion in retail client assets.<ref>{{cite news |url=https://www.nytimes.com/2020/02/20/business/morgan-stanley-etrade.html |title=Morgan Stanley to Buy E-Trade |first1=Michael J. |last1=de la Merced |first2=Kate |last2=Kelly |first3=Emily |last3=Flitter |work=The New York Times |date=February 20, 2020 |url-access=limited}}</ref> Between March and September 2023, E-Trade brokerage accounts were migrated to Morgan Stanley systems in phases, with the final wave completed over the Labor Day weekend in September 2023.<ref>{{cite news |url=https://www.thinkadvisor.com/2020/10/01/morgan-stanley-to-complete-e-trade-purchase-oct-2/ |title=Morgan Stanley to Complete E-Trade Purchase Oct. 2 |work=ThinkAdvisor |date=October 1, 2020}}</ref> The E-Trade brand was retained, operating as "E*TRADE from Morgan Stanley." ==Products and services== E-Trade offers commission-free trading on U.S.-listed stocks, exchange-traded funds, and options since October 2019.<ref>{{cite news |url=https://www.cnn.com/2019/10/02/investing/etrade-zero-commissions |title=E-Trade slashes trading commissions to zero |work=CNN Business |date=October 2, 2019}}</ref> In December 2022, the platform eliminated all mutual fund commissions and early redemption fees, providing access to over 4,400 no-transaction-fee mutual funds.<ref>{{cite news |url=https://www.fa-mag.com/news/e-trade-eliminates-commissions--redemption-fees-71081.html |title=E-Trade Eliminates Commissions, Redemption Fees on Mutual Funds |work=Financial Advisor Magazine |date=December 2022}}</ref> In December 2024, E-Trade announced five proprietary zero-expense-ratio index funds exclusive to its platform.<ref>{{cite news |url=https://www.bloomberg.com/news/articles/2024-12-17/e-trade-plans-zero-cost-funds-that-only-platform-clients-can-buy |title=E-Trade Plans Zero-Cost Funds That Only Platform Clients Can Buy |work=Bloomberg News |date=December 17, 2024 |url-access=subscription}}</ref> Through Morgan Stanley at Work, E-Trade administers equity compensation plans for approximately 40% of S&P 500 companies and 60% of Nasdaq-100 companies, serving over 24,000 corporate clients and approximately 12 million workplace participants.<ref>{{cite press release |url=https://www.businesswire.com/news/home/20250128819033/en/Tech-Enhancements-from-Morgan-Stanley-at-Work-Drive-Scale-and-Chart-Path-for-Integrated-Experience-in-2025 |title=Tech Enhancements from Morgan Stanley at Work Drive Scale |publisher=Business Wire |date=January 28, 2025}}</ref> ==Technology== E-Trade operates three trading platforms: E*TRADE Web for mainstream investors, Power E*TRADE for advanced web and mobile trading, and Power E*TRADE Pro, a downloadable desktop platform launched in July 2025 offering up to six custom workspaces with 120 charting tools across multiple monitors.<ref>{{cite news |url=https://finance.yahoo.com/news/e-trade-morgan-stanley-raises-130000914.html |title=E-Trade from Morgan Stanley Raises the Bar for Active Trader Experience |work=Yahoo Finance |date=July 2025}}</ref> In September 2025, Morgan Stanley announced plans to offer cryptocurrency trading through E-Trade in the first half of 2026, partnering with Zerohash for liquidity, custody, and settlement infrastructure. The offering is expected to include Bitcoin, Ethereum, and Solana.<ref>{{cite news |url=https://www.cnbc.com/2025/09/23/morgan-stanley-crypto-trading-e-trade-next-year.html |title=Morgan Stanley to Offer Crypto Trading Through E-Trade Next Year |work=CNBC |date=September 23, 2025}}</ref><ref>{{cite news |url=https://www.bloomberg.com/news/articles/2025-09-23/morgan-stanley-taps-partner-to-offer-crypto-to-e-trade-clients |title=Morgan Stanley Taps Partner to Offer Crypto to E-Trade Clients |work=Bloomberg News |date=September 23, 2025 |url-access=subscription}}</ref> ==Financial performance== As of the end of 2024, E-Trade's self-directed channel held $1.4 trillion in client assets, a 25% increase year-over-year, serving more than 8 million households.<ref>{{cite news |url=https://www.wealthmanagement.com/wirehouse-news/morgan-stanley-boasts-big-wealth-revenue-boosts-mirroring-other-wirehouses |title=Morgan Stanley Boasts Big Wealth Revenue Boosts |work=WealthManagement.com |date=2025}}</ref> By 2025, self-directed assets rose to $1.67 trillion.<ref>{{cite news |url=https://www.financial-planning.com/news/morgan-stanley-more-than-doubles-net-new-assets-in-q4 |title=Morgan Stanley More Than Doubles Net New Assets in Q4 |work=Financial Planning |date=2025}}</ref> In March 2026, Morgan Stanley's IRA assets under management surpassed $1 trillion, growing at a 15.8% compound annual growth rate since 2022.<ref>{{cite press release |url=https://www.businesswire.com/news/home/20260316667499/en/Morgan-Stanley-Wealth-Management-Surpasses-1-Trillion-in-Individual-Retirement-Account-Assets-Under-Management |title=Morgan Stanley Wealth Management Surpasses $1 Trillion in IRA AUM |publisher=Business Wire |date=March 16, 2026}}</ref> ==Regulatory actions== In January 2022, the Financial Industry Regulatory Authority (FINRA) censured E-Trade Securities and imposed a $350,000 fine for failing to adequately monitor for potentially manipulative trading, including wash trades and end-of-day price manipulation, over a period from February 2016 through November 2021.<ref>{{cite news |url=https://www.advisorhub.com/morgan-stanleys-etrade-to-pay-350k-fine-over-supervisory-lapses/ |title=Morgan Stanley's E-Trade to Pay $350K Fine Over Supervisory Lapses |work=AdvisorHub |date=January 2022}}</ref> In September 2022, Morgan Stanley paid $125 million to settle SEC and CFTC charges as part of an industry-wide enforcement action against 16 Wall Street firms for employees' widespread use of WhatsApp, text messages, and personal email for business communications without preserving records, in violation of federal securities recordkeeping laws.<ref>{{cite web |url=https://www.sec.gov/newsroom/press-releases/2022-174 |title=SEC Charges 16 Wall Street Firms with Widespread Recordkeeping Failures |publisher=U.S. Securities and Exchange Commission |date=September 27, 2022}}</ref> ==Advertising== In 2007, E-Trade introduced its talking baby campaign in which comedian Pete Holmes was the voice of the baby and Steve Burns was the voice of the announcer.<ref>https://www.cnn.com/2022/01/28/media/etrade-baby-super-bowl-ad</ref> ==Acquisitions and divestitures== {| class="wikitable sortable" |- ! scope="col" | Date ! scope="col" | Acquisition / Divestiture ! scope="col" | Company ! scope="col" class="unsortable" | {{Refh}}
|- | {{dts|2000|01}} | Acquisition | Telebanc | <ref>{{Cite news |url=https://www.wsj.com/articles/SB947607385757597003 |title=E*Trade Group Wins Approval To Acquire Telebanc Financial |first=Rebecca |last=Buckman |work=The Wall Street Journal |date=January 12, 2000 |url-access=subscription}}</ref><ref>{{cite news |url=https://www.washingtonpost.com/archive/business/2004/01/26/for-e-trade-courtship-ends-short-of-marriage/2c4538af-ca0f-4a34-8643-2424f38d744f/ |title=For E-Trade, Courtship Ends Short of Marriage |first=Jerry |last=Knight |newspaper=The Washington Post |date=January 26, 2004}}</ref><ref>{{cite news |url=https://www.deseret.com/1999/6/1/19448596/etrade-to-buy-telebanc-financial |title=ETrade to buy Telebanc Financial | work=Deseret News |agency=Associated Press |date=June 1, 1999}}</ref>
|- | {{dts|2001|05}} | Acquisition | Web Street Securities | <ref>{{cite news |url=https://www.bizjournals.com/sanfrancisco/stories/2001/05/21/daily1.html |title=E-Trade acquires Web Street |work=American City Business Journals |date=May 21, 2001 | url-access=subscription}}</ref><ref>{{cite news |url=https://www.latimes.com/archives/la-xpm-2001-may-22-fi-956-story.html |title=E-Trade to Buy Web Street for $45 Million |agency=Reuters |work=Los Angeles Times |date=May 21, 2001 | url-access=subscription}}</ref><ref>{{Cite news | url=https://adage.com/article/news/e-trade-buy-rival-brokerage-web-street/29736 | title=E-TRADE TO BUY RIVAL BROKERAGE WEB STREET | work=Ad Age | date=May 22, 2001 | url-access=subscription}}</ref>
|- | {{dts|2005|08}} | Acquisition | Harrisdirect | <ref>{{cite news | url=https://www.latimes.com/archives/la-xpm-2005-aug-09-fi-etrade9-story.html | title=E-Trade to Acquire Rival Brokerage Harrisdirect | work=Los Angeles Times | date=August 9, 2005 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.nbcnews.com/id/wbna8870550 | title=E-Trade agrees to buy rival HarrisDirect | work=NBC News | agency=Associated Press | date=August 8, 2005}}</ref><ref>{{Cite news | url=https://www.infoworld.com/article/2672418/e-trade-buys-online-brokerage-for--700-million.html | title=E-Trade buys online brokerage for $700 million | first=Juan Carlos | last=Perez | work=InfoWorld | date=August 8, 2005}}</ref> |- | {{dts|2005|10}} | Acquisition | Brown & Company | <ref>{{cite news| url=https://www.bizjournals.com/sanfrancisco/stories/2005/09/26/daily46.html| title=E-Trade to acquire BrownCo for $1.6B |work=American City Business Journals| date=September 30, 2005 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.nytimes.com/2005/09/29/business/etrade-to-buy-brownco-from-jp-morgan-for-16-billion.html | title=E*Trade to Buy BrownCo From J.P. Morgan for $1.6 Billion | first=Vikas | last=Bajaj | work=The New York Times | date=September 29, 2005 | url-access=limited}}</ref><ref>{{Cite news | url=https://www.latimes.com/archives/la-xpm-2005-sep-30-fi-etrade30-story.html | title=E-Trade to Acquire BrownCo for $1.6 Billion | work=Los Angeles Times | date=September 30, 2005 | url-access=subscription}}</ref>
|- | {{dts|2007|07}} | Divestiture | Australian division | <ref>{{cite news |url=https://www.marketwatch.com/story/anz-bank-clears-final-hurdle-in-bid-to-acquire-etrade-australia |title=ANZ Bank clears final hurdle in bid to acquire ETrade Australia |first=Rebecca |last=Thurlow |work=MarketWatch |date=May 16, 2007}}</ref><ref>{{Cite news | url=https://www.reuters.com/article/idUSSYA002745/ | title=ANZ gets controlling stake in E*Trade Australia | first=Denny | last=Thomas | work=Reuters | date=August 9, 2007}}</ref><ref>{{Cite news | url=https://www.wsj.com/articles/SB117735402266079328 | title=ANZ Increases Offer to Acquire ETrade Australia | first=Rebecca | last=Thurlow | work=The Wall Street Journal | date=April 24, 2007 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.afr.com/street-talk/anz-banking-group-to-rename-etrade-australia-20160425-goe42q | title=ANZ Banking Group to re-name E*TRADE Australia | first1=Sarah | last1=Thompson | first2=Anthony | last2=Macdonald | first3=Joyce | last3=Moullakis | work=Australian Financial Review | date=April 25, 2016 | url-access=subscription}}</ref>
|- | {{dts|2008|09}} | Divestiture | Canadian division | <ref>{{cite press release |url=https://scotiabank.investorroom.com/2008-09-22-Scotiabank-Completes-Acquisition-of-E-TRADE-Canada |title=Scotiabank Completes Acquisition of E*TRADE Canada |publisher=Scotiabank |date=September 22, 2008}}</ref><ref>{{cite news |url=https://www.cbc.ca/news/business/scotiabank-buys-e-trade-canada-1.696155 |title=Scotiabank buys E*Trade Canada |publisher=CBC News |date=July 14, 2008}}</ref>
|- | {{dts|2016|09}} | Acquisition | OptionsHouse | <ref name=optionshouse>{{cite press release |url=https://www.businesswire.com/news/home/20160912005745/en/E*TRADE-Financial-Corporation-Announces-Leadership-Transition-Close |title=E*TRADE Financial Corporation Announces Leadership Transition with Close of OptionsHouse Transaction |publisher=E-Trade Financial |via=Business Wire |date=September 12, 2016}}</ref><ref>{{Cite news | url=https://www.marketwatch.com/story/etrade-agrees-to-acquire-optionshouse-parent-for-725-million-2016-07-25 | title=ETrade agrees to acquire OptionsHouse parent for $725 million | first=Tonya | last=Garcia | work=MarketWatch | date=July 25, 2016}}</ref><ref>{{Cite news | url=https://www.barrons.com/articles/e-trade-optionshouse-merge-platforms-1504325466 | title=E*Trade, OptionsHouse Merge Platforms | first=Theresa W. | last=Carey | work=Barron's | date=September 2, 2017 | url-access=subscription}}</ref> |- | {{dts|2018|04}} | Acquisition | Trust Company of America | <ref>{{cite press release |url=https://www.businesswire.com/news/home/20180409005729/en/E*TRADE-Announces-Close-of-Trust-Company-of-America-TCA-Transaction |title=E*TRADE Announces Close of Trust Company of America (TCA) Transaction | publisher=Business Wire |date=April 9, 2018}}</ref> |- | {{dts|2019|12}} | Acquisition | Gradifi | <ref>{{cite press release |url=https://www.businesswire.com/news/home/20191209005442/en/E*TRADE-Bolsters-Corporate-Services-Capabilities-Purchase-Pioneering| title=E*TRADE Bolsters Corporate Services Capabilities Through Purchase of Pioneering Student Loan Benefit Provider Gradifi |publisher=E-Trade Financial |via=Business Wire |date=December 9, 2019}}</ref><ref>{{cite news |url=https://www.reuters.com/article/us-e-trade-financl-deals-gadifi/etrade-buys-student-loan-provider-gradifi-for-30-million-idUSKBN1YD1H8 |title=E*Trade buys student loan provider Gradifi for $30 million |first=Steve |last=Orlofsky |publisher=Reuters |date=December 9, 2019}}</ref>
|}
==See also== {{Portal|New York City|San Francisco Bay Area|Companies}} * ''Ajaxo Inc. v. E*Trade Financial Corp.'' * ''Merrill Lynch, Pierce, Fenner & Smith Inc. v. Manning'', a 2016 Supreme Court case involving naked short-selling claims against E-Trade, Merrill Lynch, and others, resolved in the defendant's favor * List of electronic trading platforms {{Clear}}
==References== {{Reflist}}
==External links== * {{Official website}} {{Coord|40.760|-73.981|type:landmark_region:US-NY|display=title}} {{Morgan Stanley}} {{Online brokerages}}
Category:1982 establishments in California Category:1996 initial public offerings Category:2020 mergers and acquisitions Category:American companies established in 1982 Category:Companies formerly listed on the Nasdaq Category:Financial services companies established in 1982 Category:Online brokerages Category:American corporate subsidiaries Category:Online financial services companies of the United States Category:Morgan Stanley Category:Companies based in Arlington County, Virginia