E*Trade Launches Advisory Service

Beth Cox

Updated · Jan 14, 2002

Continuing to move aggressively to become more than just another online
brokerage, E*Trade Group Inc. launched a planning and advice product that
includes new financial forecasting tools and the ability to consult directly
with personal financial planners through Ernst & Young.


In another step on the road to becoming a full-service financial services
company, Menlo Park, Calif.-based E*Trade said its new
E*Trade Advisor product “combines personalized electronic and human advice
through a blended channel.”


“The launch of E*Trade Advisor is an historic moment for our company …,”
said Christos M. Cotsakos, chairman of the board and chief executive officer
of E*Trade. “As we once revolutionized the online trading and banking
industries, E*Trade continues to change the way people plan for their
future.”


The market has generally been applauding E*Trade’s efforts, and the six month
chart shows a doubling of the company’s stock price, from about $6 to over
$12.


Just last week the company’s banking subsidiary
received approval from regulators
to acquire more than 30,000 accounts
with deposits currently valued at more than $1.7 billion from Chase Manhattan
Bank USA, National Association, a subsidiary of J.P. Morgan Chase & Co.


The new E*Trade Advisor service, which eventually will be made available to
all E*Trade customers, addresses financial planning needs and major life
events such as retirement and education savings. At launch the product is
available only to customers with a combined total of $100,000 in their
E*Trade accounts, and only to U.S. citizens.


After aggregating all of a customer’s online financial account data,
including those with E*Trade as well as with other financial services
companies, the service analyzes, forecasts and recommends personalized action
plans for long-term investing. Based on a customer’s personal information,
needs and risk tolerance, E*Trade Advisor is designed to make asset
allocation recommendations given an investor’s unique goals.


It also lets customers confer with a qualified Ernst & Young personal
financial planner. Financial arrangements of that alliance were not
disclosed.

Beth Cox
Beth Cox

Beth Cox has been a well-known keynote speaker and author as well as a business and technology advisor. She helps companies improve their business performance, better utilize data, and understands the implications of new technologies, such as (AI)artificial intelligence, big data, blockchains and the Internet of Things.