Updated:
E*TRADE
E*TRADE was founded in Palo Alto in 1982 by physicist William Porter and computer scientist Bernard Newcomb, who saw that personal computers could...
E*TRADE
E*TRADE was founded in Palo Alto in 1982 by physicist William Porter and computer scientist Bernard Newcomb, who saw that personal computers could disintermediate traditional stockbrokers. The firm executed its first electronic trade in 1983 and went public in 1996, riding the dot-com era's retail trading wave. Its wealth origin is corporate — E*TRADE was never a family office but a technology company that became a financial institution, eventually accumulating over $1 trillion in client assets before its sale. The platform spans equities, options, futures, fixed income, and mutual funds, with a banking arm offering deposit accounts and lending products. E*TRADE's core business aggregates retail trading flow across self-directed, managed-portfolio, and corporate stock-plan channels. Its customer base includes individual investors, active traders, and corporations using its Equity Edge platform for employee stock-plan administration. The firm's acquisition by Morgan Stanley for $13 billion closed in October 2020, folding E*TRADE's retail brokerage and digital banking operations into Morgan Stanley's wealth-management division alongside its existing full-service advisory force. Post-acquisition, E*TRADE continues to operate under its own brand with offices in Arlington, Virginia and San Francisco, functioning as Morgan Stanley's direct-to-consumer digital channel. October 2020: Morgan Stanley completed its $13 billion all-stock acquisition of E*TRADE, integrating the platform as a subsidiary while retaining the brand (per Morgan Stanley, 2020). The combined entity oversees several trillion dollars in client assets, with E*TRADE providing the self-directed technology layer that complements Morgan Stanley's advisor-led model. The E*TRADE Financial Corporation Foundation represents the firm's philanthropic vehicle. E*TRADE's structural differentiator is not technology alone — it is the post-acquisition architecture where a self-directed digital brokerage sits inside a wirehouse, creating a dual-distribution model uncommon at scale. Morgan Stanley's advisors can refer clients to E*TRADE's digital platform, while E*TRADE customers gain access to Morgan Stanley's research and banking products, forming a funnel without forcing all clients into a single service model.
General information
Firm type
Corporate Investor
Year founded
1982
Location
Region
North America
Country
United States
City
New York
Corporate office
1271 Avenue of the Americas, 14th Floor, New York, NY 10020, United States
Additional offices
Arlington, VA · San Francisco, CA
Principals
William A. Porter
Co-Founder
Bernard A. Newcomb
Co-Founder
Sector focus
Frequently asked questions
Who owns E*TRADE now, and how does that affect the platform?
Morgan Stanley acquired E*TRADE in an all-stock transaction that closed in October 2020. E*TRADE operates as a subsidiary within Morgan Stanley Wealth Management, retaining its brand, clearing infrastructure through E*TRADE Securities LLC, and its federal savings bank. The acquisition gives Morgan Stanley's advisory force access to E*TRADE's self-directed client base.
How is E*TRADE structured differently from a standalone broker-dealer?
E*TRADE operates a full-service retail brokerage, a federal savings bank (E*TRADE Bank), stock plan administration for corporations, and a futures commission merchant. All are now consolidated under Morgan Stanley, which maintains separate FINRA, SIPC, and NFA memberships for the relevant E*TRADE entities.
What became of E*TRADE Bank's deposit base?
At the time of the Morgan Stanley acquisition, E*TRADE Bank held approximately $56 billion in deposits, largely from brokerage sweep accounts and direct banking customers. Morgan Stanley folded these into its own banking operations and integrated the deposit franchise into its broader wealth management liquidity strategy.
Does E*TRADE still operate independently from Morgan Stanley?
It operates as a branded retail channel under Morgan Stanley Wealth Management with its own platform, website, and clearing operations, but strategic direction, risk management, and capital allocation are controlled by Morgan Stanley. There is no independent parent company.
Who founded E*TRADE and when?
E*TRADE was founded as Trade*Plus in 1982 by William A. Porter, a physicist and inventor, and Bernard A. Newcomb, a former Hewlett-Packard engineer. They built the first electronic consumer brokerage platform, allowing retail traders to execute equity orders without a human broker. The company was renamed E*TRADE in 1996.
What regulatory bodies oversee E*TRADE?
E*TRADE Securities LLC is a FINRA and SIPC member broker-dealer. E*TRADE Futures LLC is a member of the National Futures Association. E*TRADE Bank, now integrated under Morgan Stanley, was regulated by the Office of the Comptroller of the Currency and the FDIC.
Does E*TRADE maintain a corporate foundation?
The E*TRADE Financial Corporation Foundation historically funded financial literacy, education, and community development grants. Post-acquisition, its activities have been integrated into Morgan Stanley's philanthropic framework.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
Need institutional-grade insight on asset managers?
Altss delivers:
Prefer a guided tour?
We’ll walk you through: