Can E-trade ( One of the largest brokerage firms in US) survive one more year ?

By John Smith
Posted  on : Jan 16th 2010

On Sept 7th 2007 Etrade Financial firms stock price was 14.68. Since then due to current financial crises and loan defaults. E-trade has not shown a single quarter of profits. That is almost 10 straight quarters of loss totaling upto $3.49 billion. It current stock price is 1.82. For most of 2009 there has been speculation that E-trade might be bought over by another brokerage firm. The speculation was bolstered by TD Ameritrade CEO's announcement that he might consider purchase of the brokerage firm if the price is right.

Would your investment be covered by FDIC

So the question comes up again as an investor in stock market should you be concerned about the health of E-trade or is it safe to use their brokerage services. Traditionally brokerage accounts are not covered by FDIC. Your E-trade savings account as well as your IRA account would be covered by FDIC . However your mutual funds and
stocks are not.

Recommendation for which brokerage firm to choose

The analyst at comparebroker are closely monitoring the situation , we believe E-trade is till capitalized enough that it is not going to go bankrupt. It is also restructuring a lot lately to come out of the crises. Like recently it shut down its applications for international locales as part of the restructuring plan. Therefore because of its superior customer service as well as great trading tools we still recommend people to continue using it. However if you are a person who
does not believe in taking risk, fe options that you have are Options house for options trading, tradeking , zecco for stock trading and Lightspeed for High Speed transactions.

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