eTrade 2012 Annual Report Download - page 7

of our corporate customers who conduct equity option and restricted stock transactions, with our goal being that
these individuals will also use our retail products and services. Equity Edge OnlineTM was rated #1 in overall
satisfaction and loyalty by Group Five, an independent consulting and research firm, in its 2012 Stock Plan
Administration Study Industry Report.
Market Making
Our trading and investing segment also includes market making activities which match buyers and sellers of
securities from our retail brokerage business and unrelated third parties. As a market maker, we take positions in
securities and function as a wholesale trader by combining trading lots to match buyers and sellers of securities.
Trading gains and losses result from these activities. Our revenues are influenced by overall trading volumes,
trade mix and the number of stocks for which we act as a market maker and the trading volumes and volatility of
those specific stocks.
Balance Sheet Management
The balance sheet management segment consists of the management of our balance sheet, focusing on asset
allocation and managing credit, liquidity and interest rate risks. The balance sheet management segment manages
loans previously originated or purchased from third parties as well as our customer cash and deposits, which
originate in the trading and investing segment.
For statistical information regarding products and services, see Item 7. Management’s Discussion and
Analysis of Financial Condition and Results of Operations (“MD&A”). Three years of segment financial
performance and data can be found in the MD&A and in Note 20—Segment Information of Item 8. Financial
Statements and Supplementary Data.
SALES AND CUSTOMER SERVICE
We believe providing superior sales and customer service is fundamental to our business. We also strive to
maintain a high standard of customer service by staffing the customer support team with appropriately trained
personnel who are equipped to handle customer inquiries in a prompt yet thorough manner. Our customer service
representatives utilize our proprietary web-based platform to provide customers with answers to their inquiries.
We also have specialized customer service programs that are tailored to the needs of each customer group.
We provide sales and customer support through the following channels of our registered broker-dealer and
investment advisory subsidiaries:
•Branches—we have 30 branches located in the U.S. where retail investors can go to service any of their
needs while receiving face to face customer support. Financial consultants are also available on-site to
help customers assess their current asset allocation and develop plans to help them achieve their
investment goals. Customers can also contact our financial consultants via phone or e-mail if they
cannot visit the branches.
•Online—we have an Online Advisor tool available that provides asset allocation and a range of
investment solutions that can be managed online or through a dedicated investment professional. We
also have an Online Service Center where customers can request services on their accounts and obtain
answers to frequently asked questions. The online service center also provides customers with the
ability to send a secure message and/or engage in Live Chat with one of our customer service
representatives.
•Telephonic—we have a toll free number that connects customers to an automated phone system which
will help ensure that they are directed to the appropriate department where a financial consultant or
licensed customer service representative can assist with their inquiry.
4