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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Spytrdr who wrote (11363)	2/2/2000 11:45:00 AM
From: Spytrdr	Read Replies (1) \| Respond to of 13953

OLB's report part I (COMTEX) B: Online Brokerage Storms Back After Poor Third Quarter, Av B: Online Brokerage Storms Back After Poor Third Quarter, Average Daily Trades Up A Resounding 55 Percent In Q4 1999 SAN FRANCISCO, Calif., Feb 2, 2000 (BUSINESS WIRE) -- Trading Volume Growth Matched by Unprecedented Account Growth,as the Industry Adds Over 1.8 Million News Accounts According to U.S. Bancorp Piper Jaffray's Latest Online Brokerage Survey U.S. Bancorp Piper Jaffray Managing Director and Senior e-Finance Analyst Stephen C. Franco, today reported on a proprietary research study conducted on the online brokerage industry. After the industry suffered its first sequential decline in trading volumes in third quarter 1999, the online brokerage industry roared back as online trading volumes skyrocketed 55 percent in the fourth quarter. Online brokers added over 1.8 million new accounts, the largest quarterly jump in new accounts in the history of the industry. In addition, the amount of assets held in online brokerage accounts grew by 35.4 percent from the previous quarter to over $900billion. Significant findings in the report include: -- Schwab retains its No. 1 position, but its market share continues to diminish in the face of increased low cost competition. Schwab lost 60 basis points of market share in fourth quarter 1999 and lost 550 basis points of market share in calendar 1999; -- For the 3rd consecutive quarter E.Trade posted remarkable account growth, adding 330,000 new accounts, at a modest $289 acquisition cost per account; -- Asset levels rose 35.4 percent to $900 billion, a key statistic as many online brokers try to diversify their revenue mix and move away from their heavy dependence on trading volumes; -- Despite the massive sums spent marketing online brokerage, customer acquisition costs remained relatively in check signifying the stry has yet to mature; -- Online trading volumes accounted for 48 percent of all retail trades for the second half of 1999, up from 37 percent in the first half of 1999. Online trading volumes accounted for 43percent of all retail trades in 1999, up from 27 percent in 1998. "The Online Brokerage Industry reported even stronger trading volumes in the December quarter than the most optimistic forecasts, posting an unprecedented 55 percent sequential growth rate," said Franco. "More importantly, the industry added another 1.8 million accounts demonstrating that the land-grab is still at a fevered pitch and the gaudy advertising investments are in fact paying off. "