eTrade 2007 Annual Report Download - page 6

• access to international equities in Canada, France, Germany, Hong Kong, Japan and the United Kingdom
and foreign currencies, including the Canadian dollar, Euro, Hong Kong dollar, Yen and Sterling;
• two-second execution guarantee on all S&P 500 stocks and exchange-traded funds;
• margin accounts allowing customers to borrow against their securities;
• access to some of the lowest cost stock index funds in the industry and to over 7,000 non-proprietary
mutual funds;
• educational services through the Internet, phone or in person and flexible advisory services, including
full-service portfolio management; and
• no fee and no minimum individual retirement accounts.
Retail banking and lending products and services include:
• interest-earning checking, money market, savings and CD products with FDIC-insurance;
• FDIC-insured sweep deposit accounts that automatically transfer funds from customer brokerage
accounts;
• access to deposit account balances and transactions, through the Internet, phone or in person;
• prime credit quality first-lien mortgage loans secured by single-family residences;
• prime credit quality second-lien mortgage loans, including home equity lines of credit, secured by single-
family residences; and
• credit cards that earn miles or offer rewards for commission-free trades, travel or merchandise.
All of our retail products are covered by the E*TRADE Complete Protection Guarantee.
Retail customers are offered trading, investing, banking and lending products and services via our website,
over the phone and in person. Customers have the ability to transfer funds quickly and easily between their
trading, investing, banking and lending accounts, thereby giving them the opportunity to optimize the yield and
liquidity of their funds.
In addition to the services above, our retail segment includes employee stock option management software
and services which are provided to corporate customers. This software system facilitates the management of
employee option plans, employee stock purchase plans and restricted stock plans, including necessary accounting
and reporting functions. This business is a component of the retail segment since it serves as an introduction to
E*TRADE for many retail customers who conduct equity option transactions as employees of our corporate
customers, with our goal being that these individuals will also use our other products and services.
Institutional
Our institutional segment includes market-making activities which match buyers and sellers of securities
from both the retail segment and unrelated third parties, often taking principal positions in these securities.
Institutional customers are offered access to a range of execution services through traditional sales traders and
direct market access to exchanges.
We act as a market maker in certain over-the-counter issues through E*TRADE Capital Markets, LLC. A
market maker is a broker-dealer authorized by an exchange. As a market maker, we are responsible for
maintaining an orderly market in the securities assigned to us by the exchange and are frequently required to take
principal positions in these securities. The majority of our share volume for market-making activities involves
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