eTrade 2009 Annual Report Download - page 50

Trading and investing commissions revenue increased 6% to $548.0 million for the year ended
December 31, 2009 compared to 2008. The increase in commissions revenue was the result of an increase in
DARTs of 4% to 196,521 and an increase in the average commission per trade of 2% to $11.11 for the year
ended December 31, 2009 compared to 2008.
Trading and investing principal transactions revenue increased 4% to $88.1 million for the year ended
December 31, 2009 compared to 2008. Our principal transactions revenue is influenced by overall trading
volumes, the number of stocks for which we act as a market-maker, the trading volumes of those specific stocks
and the performance of our proprietary trading activities. The increase in principal transactions revenue was
driven by an increase in the volume of equity shares that were traded, which was partially offset by a decrease in
our average revenue earned per share traded for the year ended December 31, 2009.
Trading and investing segment expense decreased 4% to $991.4 million for the year ended December 31,
2009 compared to 2008. The decrease related primarily to a decrease in advertising and market development
expense and a decrease in bad debt expense, which were partially offset by an increase in FDIC insurance
premiums.
As of December 31, 2009, we had approximately 2.6 million brokerage accounts (excluding 0.1 million
international local accounts), 1.0 million stock plan accounts and 0.7 million banking accounts. For the years
ended December 31, 2009 and 2008, our brokerage products contributed 63% for both years and our banking
products, which include sweep products, contributed 28% and 27%, respectively, of total trading and investing
net revenue. All other products contributed less than 10% of total trading and investing net revenue for the years
ended December 31, 2009 and 2008.
2008 Compared to 2007
Trading and investing segment income decreased 21% to $623.2 million for the year ended December 31,
2008 compared to 2007. This was due primarily to a decrease in net operating interest income.
Trading and investing net operating interest income decreased 14% to $830.4 million for the year ended
December 31, 2008 compared to 2007. This decrease was driven primarily by a decrease in average margin
receivables as well as the above market rate on our Complete Savings Account.
Trading and investing commissions revenue decreased 1% to $514.7 million for the year ended
December 31, 2008 compared to 2007. The slight decrease in commissions revenue was primarily the result of a
decrease in average commissions per trade of 7%, offset by an increase in DARTs of 6%.
Trading and investing principal transactions decreased 16% to $84.8 million for the year ended
December 31, 2008 compared to 2007. The decrease in principal transactions resulted from lower trading
volumes.
Trading and investing segment expense decreased 1% to $1.0 billion for the year ended December 31, 2008
compared to 2007. This decrease related primarily to $35.1 million in expense recorded for certain legal and
regulatory matters for the year ended December 31, 2007 for which there was no similar expense in the year
ended December 31, 2008. This decrease was partially offset by our planned growth in marketing spend as we
expanded efforts to promote our products and services to investors.
As of December 31, 2008, we had approximately 2.5 million brokerage accounts (excluding 0.1 million
international local accounts), 1.0 million stock plan accounts and 0.8 million banking accounts. For the years
ended December 31, 2008 and 2007, our brokerage products contributed 63% for both years and our banking
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