Online investing platform E-trade said it’s second-quarter trading hit a record level. The electronic brokerage company said it had 1.01 million active daily trades during its second quarter, a 267 percent increase from last year’s tally during the same quarter.
E-trade added 329,000 new trading accounts during the first quarter, a record for the platform. In its second quarter, it nearly matched the first by adding 327,000 new accounts. The surge was due to a retail investing boom prompted by the market turmoil during the coronavirus.
E-Trade, TD Ameritrade, Charles Schwab, and Robinhood – the four major online brokers – have all added new accounts and seen surging trading activity amid the coronavirus recession. As a whole, the brokerage industry saw a gold rush in its retail division as smaller investors saw opportunities in the online trading market.
Mike Pizzi, CEO of E-Trade, said: “We generated greater retail organic asset growth in the first half of this year alone than in the previous two years combined, and generated more retail organic account growth than the previous five years combined.”
The Arlington, VA-based brokerage earned 88 cents a share on $716 worth of revenue. According to Refinitiv, analysts anticipated 76 cents a share with revenue of $676 million.
Chad Turner, E-Trade’s Chief Financial Officer, said: “We generated our highest period ever of revenue from trading-related activity, which more than offset the quarter-over-quarter pressure on net interest income, given the Fed’s recent rate cuts to near zero.”
E-Trade’s year-to-date asset flow for retail stands at $31.9 billion, with its account growth standing at 656,000.
Morgan Stanley is set to acquire E-Trade during the latter half of 2020 for 13 billion in stock purchases.