The investment landscape has changed dramatically in recent years, with online brokers like ETRADE playing a pivotal role in making financial markets accessible to millions. If you're wondering about the scale of ETRADE's reach and what that means for investors, you've come to the right place!
Let's dive deep into understanding E*TRADE's customer base and what makes it a significant player in the online brokerage industry.
Understanding E*TRADE's Customer Base: A Comprehensive Guide
Step 1: Unraveling the Enigma of Customer Numbers – Why it Matters to YOU!
Have you ever wondered why knowing a company's customer count is important, especially for a financial services provider like E*TRADE? It's not just a vanity metric! A large and growing customer base often indicates a healthy, robust, and trusted platform. It signifies:
Market Leadership: A high customer count suggests E*TRADE is a dominant force in the online brokerage space.
Liquidity and Activity: More customers often mean more trading activity, leading to better liquidity in certain assets and potentially tighter spreads.
Trust and Reliability: Millions of users trusting their investments with E*TRADE speaks volumes about its security and reliability.
Resource Allocation: A larger customer base allows E*TRADE (and its parent company, Morgan Stanley) to invest more in technology, customer service, and new product offerings.
So, while directly quantifying "how many customers does E*TRADE have" can be a bit fluid due to various reporting methods and continuous growth, we can look at some key indicators and historical data to get a very good picture.
Step 2: The Acquisition by Morgan Stanley – A Game Changer for Customer Figures
The most significant event impacting ETRADE's customer numbers in recent years was its acquisition by Morgan Stanley. In February 2020, Morgan Stanley announced its acquisition of ETRADE for $13 billion. This was a monumental deal that reshaped the online brokerage landscape.
Before the Acquisition (Early 2020): Prior to the acquisition, E*TRADE had over 5.2 million client accounts with over $360 billion of retail client assets. This was a substantial customer base on its own.
The Combined Powerhouse: The acquisition was designed to create a leader in all major wealth management channels, combining E*TRADE's strong direct-to-consumer platform with Morgan Stanley's leading advisor-driven model. The combined entity was projected to have:
$3.1 Trillion in client assets
8.2 Million retail client relationships and accounts
4.6 Million stock plan participants
This merger fundamentally changed how we look at ETRADE's customer numbers, as its figures are now integrated within Morgan Stanley's broader wealth management reports. It's no longer just ETRADE's individual numbers, but its contribution to the overall Morgan Stanley ecosystem.
Step 3: Analyzing Recent Growth Trends – Beyond Just a Number
While specific, standalone ETRADE customer numbers aren't regularly reported post-acquisition in the same way they were, we can infer growth from Morgan Stanley's overall wealth management performance and past ETRADE trends.
3.1: The Pandemic's Impact on Online Brokerage Adoption
The period following the acquisition (and largely coinciding with the COVID-19 pandemic) saw a surge in retail investing activity. E*TRADE, with its robust online platform, was a direct beneficiary of this trend.
Record Account Growth: E*TRADE reported tremendous retail account growth in the first six months of 2020, with net new retail accounts reaching record or near-record highs. This growth in 2020 alone was more than double their previous best full-year period and exceeded the account growth from the prior five years combined. This indicates a significant influx of new users.
Increased Engagement: Beyond just new accounts, E*TRADE also saw a notable step-up in activity among existing customers. Daily Average Revenue Trades (DARTs) and platform usage surged, with customers logging in over 200 million times in Q2 2020 alone.
3.2: The Power of Mobile and Digital Convenience
E*TRADE has consistently invested in its digital offerings, particularly its mobile applications. This focus on user-friendly and accessible platforms has been a key driver of customer acquisition and engagement.
Mobile-First Approach: A significant portion of logins (over 63% in Q2 2020) occurred via mobile devices. Enhancements to their mobile app led to a 175% increase in new mobile app downloads in Q2 2020 compared to the previous year.
Millennial and Gen Z Engagement: Studies conducted by E*TRADE (now under Morgan Stanley) have shown a significant confidence boost and increased engagement among younger investors (Millennials and Gen Z). In a June 2021 study, over three-quarters of Gen Z and Millennial investors (76%) reported trading at least once a week on their smartphone, a substantial increase from the prior year. This demographic is crucial for future customer growth.
3.3: Diversification of Offerings and Integrated Services
E*TRADE's strength lies in its comprehensive suite of services, attracting a wide range of investors. This includes:
Brokerage Accounts: For self-directed investors to buy and sell stocks, ETFs, mutual funds, options, bonds, and more.
Retirement Accounts: Various IRA options (Traditional, Roth, Rollover) and small business retirement plans.
Managed Portfolios: Automated investment management services (Core Portfolios).
Banking Services: Integrated banking products, including checking and high-yield savings accounts.
Stock Plan Services: A leading platform for corporate stock plan participants.
This diversification allows E*TRADE to attract and retain customers with varying financial needs and investment styles, contributing to a robust overall customer base for Morgan Stanley Wealth Management.
Step 4: Estimating ETRADE's Current Reach (Post-Merger Perspective)*
Given that ETRADE's customer numbers are now integrated into Morgan Stanley's overall wealth management reporting, it's difficult to provide a precise, standalone "ETRADE customer count" for July 2025. However, we know that E*TRADE forms a significant pillar of Morgan Stanley's 8.2 million retail client relationships and accounts as projected at the time of acquisition.
Since the acquisition in 2020, the online brokerage market has continued to see strong growth. Given E*TRADE's continued investment in its platforms and its strong position within Morgan Stanley, it's reasonable to assume that its contribution to Morgan Stanley's overall client relationships has continued to grow.
Morgan Stanley's commitment to E*TRADE is evident in its continued focus on enhancing the platform and integrating it more deeply into its wealth management strategy. This ongoing investment suggests a healthy and expanding user base.
Step 5: What This Means for You as an Investor or Potential Customer
The sheer scale of E*TRADE's (and by extension, Morgan Stanley's) customer base has several positive implications for you:
Robust Infrastructure: A large customer base necessitates and supports a highly reliable and scalable trading infrastructure.
Comprehensive Offerings: To cater to millions, E*TRADE provides a wide array of investment products and tools suitable for various investor profiles, from beginners to active traders.
Competitive Pricing: The competitive nature of the online brokerage market, fueled by large players like E*TRADE, often leads to $0 commissions for online US-listed stock, ETF, mutual fund, and options trades, making investing more accessible.
Educational Resources: E*TRADE has historically focused on providing extensive educational content and tools, which are continuously upgraded to empower both new and experienced investors.
In conclusion, while an exact, single number for ETRADE's current customer count is not publicly available post-Morgan Stanley acquisition, it's clear that ETRADE contributes to millions of retail client relationships within Morgan Stanley's wealth management division and continues to be a major force in the online brokerage industry. Its growth has been significant, particularly driven by the surge in retail investing and its focus on digital and mobile accessibility.
10 Related FAQ Questions
Here are 10 related FAQ questions with quick answers, starting with "How to":
How to check E*TRADE customer reviews?
You can check E*TRADE customer reviews on independent financial review websites like Investopedia, NerdWallet, and ConsumerAffairs, as well as on app store ratings for their mobile applications.
How to open an E*TRADE account?
To open an E*TRADE account, visit their official website, choose the type of account you want (e.g., brokerage, IRA), complete the online application, and then fund your account. You can also open an account by phone or mail.
How to transfer funds to E*TRADE?
You can transfer funds to E*TRADE via various methods, including electronic funds transfer (ACH), wire transfer, check deposit, or by transferring an existing brokerage account from another institution.
How to place a trade on E*TRADE?
You can place a trade on ETRADE through their website, Power ETRADE desktop platform, or their mobile apps by selecting the asset you want to trade (stocks, options, etc.), entering your order details, and confirming the transaction.
How to contact E*TRADE customer service?
E*TRADE customer service can typically be reached by phone (their main contact number is often available on their website), through secure message within your online account, or by visiting one of their physical branches if available.
How to use Power E*TRADE platform?
To use the Power ETRADE platform, log in to your ETRADE account and access the platform. It offers advanced tools for charting, analysis, and screening, along with customizable layouts and real-time data, often requiring some exploration to master.
How to find E*TRADE's commission fees?
E*TRADE's commission fees for various transactions (like stock, ETF, and options trades) are detailed on their official website, usually under a "Pricing" or "Commissions & Fees" section. They offer $0 commissions for online US-listed stock, ETF, mutual fund, and options trades, though other fees may apply.
How to invest in retirement with E*TRADE?
You can invest for retirement with E*TRADE by opening various retirement accounts like Traditional IRAs, Roth IRAs, Rollover IRAs, or small business retirement plans (Individual 401(k), SIMPLE IRA, SEP IRA) and then choosing from their range of investment products.
How to access E*TRADE's educational resources?
E*TRADE provides extensive educational resources, including articles, videos, webinars, and tutorials, accessible through the "Knowledge" or "Education" section of their website and within their trading platforms.
How to close an E*TRADE account?
To close an E*TRADE account, it's best to contact their customer service directly. They will guide you through the process, which usually involves ensuring your account balance is zero and transferring any remaining assets.
