eTrade 2000 Annual Report Download - page 5

internationally and our expanding technology in these sectors has enabled us to launch the first phase of our cross-border trading
platform, allowing retail customers in Sweden and Norway to buy U.S. equities in real time, online. In addition, we are developing an
electronic trading platform for our institutional customers. Asset Gathering and Other includes our mutual fund operations, the
Business Solutions Group (“BSG”), eInvesting, and other services focused on retirement/401(k) programs, college savings plans,
delivery of electronic advice and money management, tiered product offerings and activities generated from our corporate operations.
As the Asset Gathering and Other operations of our business represent emerging activities which are not material to our consolidated
results for segment reporting purposes, management has combined Asset Gathering and Other with Domestic Retail Brokerage to form
one of three reportable segments. Banking and Global and Institutional comprise the other two reportable segments constituting the
manner in which management currently evaluates company performance.
For financial information by segment and geographic area for the three years ended September 30, 2000, see Note 23 to the
Consolidated Financial Statements. No material part of our consolidated revenue is received from a single customer.
DOMESTIC RETAIL BROKERAGE
Business Overview
Our domestic retail brokerage business is comprised of the activities of E*TRADE Securities. As of September 30, 2000, we had
2,952,000 active brokerage accounts, up 90% for the year, with assets held in customer brokerage accounts in excess of $59.9 billion,
up 111% from last year. In fiscal 2000, we added 1,401,000 net new active brokerage accounts, an increase of 39% over the number of
net new brokerage accounts added in fiscal 1999. Our average daily transaction volume was 167,000 in fiscal 2000, a 144% increase
over the average daily transaction volume of 68,500 in fiscal 1999. The strong gains in new brokerage accounts, transactions and
assets represent the success of our strategy to become the branded, global leader and recognized authority in electronic personal
financial services as led by our domestic retail brokerage business. This strategy involves:
leveraging our powerful brand to increase new customer accounts and assets held in customer accounts by offering a unique
and compelling online experience;
providing the broadest range of high-value-added tools, products and services;
enabling ‘‘anytime, anywhere, anyway’ ’ access, worldwide, to actionable information; and
integrating a broad-based digital financial media strategy with existing product and service offerings.
Products and Services
Our domestic retail brokerage and related investment services are based upon proprietary transaction-enabling technology and are
designed to serve the needs of self-directed investors. Our services include fully-automated stock, option, fixed income and mutual
fund order processing, online investment portfolio tracking, and financial market news and information. We offer our services to
consumers through a broad range of electronic gateways, including the Internet, automated telephone service, Internet-enabled wireless
devices, direct modem access, and live telephone representatives available 24 hours a day, 7 days a week. Customers have access to
current account information regardless of which gateway they are using. We expanded our services significantly during fiscal 2000
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with several important new offerings, including wireless access to quotes and trading, pre-open trading, online documents, and
real-time account opening and funding.
We continually strive to increase the functionality of our services, as well as to offer new services that enhance customers’ online
investing experiences. Our services give consumers increased control over their personal investments by providing a link to the
financial markets and to financial information through a user interface that can be customized and personalized. Our existing services
and product offerings are described below.
Stock, Option, Fixed Income and Mutual Fund Investing
2002. EDGAR Online, Inc.