eTrade 2010 Annual Report Download - page 49

Trading and investing fees and service charges decreased 25% to $139.1 million for the year ended
December 31, 2010 compared to 2009. The decreases were primarily due to lower order flow revenue and the
elimination of all account activity fees, which became effective in the second quarter of 2010.
Trading and investing principal transactions increased 17% to $103.4 million for the year ended
December 31, 2010 compared to 2009. The increase in principal transactions 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, 2010.
Trading and investing operating expense decreased 6% to $752.6 million for the year ended December 31,
2010 compared to 2009. The decrease related primarily to decreases in compensation and benefits, clearing and
servicing, and communications expenses, which were partially offset by increases in advertising and market
development expense and professional services.
As of December 31, 2010, we had approximately 2.7 million brokerage accounts, 1.0 million stock plan
accounts and 0.5 million banking accounts. For the years ended December 31, 2010 and 2009, our brokerage
products contributed 67% and 77%, respectively, and our banking products, which include sweep products,
contributed 33% and 23%, respectively, of total trading and investing net revenue.
2009 Compared to 2008
Trading and investing segment income increased 8% to $760.2 million for the year ended December 31,
2009 compared to 2008. Trading activity was strong during 2009 resulting in total DARTs of 179,183 and an
average commission per trade of $11.33. We also continued to generate new brokerage accounts, ending the year
with 2.6 million accounts. Our brokerage related cash increased by $4.6 billion when compared to 2008.
Trading and investing net operating interest income decreased 13% to $699.6 million for the year ended
December 31, 2009 compared to 2008. This decrease was driven primarily by a decrease in the average balance
of margin receivables during the comparable periods, which was partially offset by a decrease in yields paid on
customer deposits.
Trading and investing commissions increased 6% to $548.0 million for the year ended December 31, 2009
compared to 2008. The increase in commissions was the result of an increase in DARTs of 6% to 179,183 and an
increase in the average commission per trade of 3% to $11.33 for the year ended December 31, 2009 compared to
2008.
Trading and investing principal transactions increased 4% to $88.1 million for the year ended December 31,
2009 compared to 2008. The increase in principal transactions 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 operating expense decreased 14% to $796.6 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 compensation and benefits expense.
As of December 31, 2009, we had approximately 2.6 million brokerage 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 77% and 75%, respectively, and our banking products, which include sweep products,
contributed 23% and 25%, respectively, of total trading and investing net revenue.
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