At a Robertson Stephens conference this week in San Fransisco, E*Trade's Chief Financial Officer announced that the group would be actively targeting younger investors in the future, in order to try and usurp the industry leader, the Charles Schwab Corporation. E*Trade currently holds 15% of market share for online retail level brokerage transactions, compared with Schwab's 22% share.
Leonard Purkis told analysts that retirees accounted for only 6% of E*trade accounts, less than half of the number held by retirees with the Charles Schwab Corporation, and, showing a touching faith in investor loyalty, reasoned that: 'As our account base matures, the value of our accounts will continue to increase'
He also told them that they could expect to see distinctive advertising campaigns designed to establish 'mind awareness' among younger investors (um…guys…? Remember last year..?). However, the fact that development plans for their banking arm, E*Trade Bank, include a chain of ATMs, suggests that the group does not plan to totally ignore the wishes of the older, higher income customers either.
E*Trade also plans to continue international expansion, pursuing buyouts of international affiliates in order to create an international network which allows investors to trade 24/7, wherever they happen to be.
In a recent announcement of earnings, the Group stated that it had added 244,000 new accounts in the last quarter, a 26% gain in banking customers, and an improvement of 6% at the brokerage. However, these figures are not without controversy, and there were cries of foul play, as it was discovered that some customers had accounts which they had not requested opened for them, and were given $25 as an incentive to fund the account.
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