Ever wondered about the roots of your online trading platform? Or perhaps you're just curious about how long a company like ETRADE has been around, carving its niche in the ever-evolving world of finance. Well, you've come to the right place! Get ready to dive into the fascinating history of ETRADE, a pioneer in online brokerage.
Step 1: Let's Start with a Question!
Before we get into the nitty-gritty, let me ask you: What's the oldest company you can think of that's still relevant in today's digital landscape? Think about it for a moment. It's truly impressive when a company can adapt and thrive for decades, especially in a sector as dynamic as financial services. E*TRADE is one such company, with a history that stretches back further than many might realize.
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| How Long Has Etrade Been In Business |
Step 2: The Genesis - From TradePlus to E*TRADE
The story of ETRADE actually begins before it was officially known as ETRADE.
Sub-heading: The Visionary Behind It All
Tip: Reread complex ideas to fully understand them.
It all started in 1982 when William A. Porter, a physicist and inventor, founded a company called TradePlus in Palo Alto, California. With just $15,000 in capital, Porter had a revolutionary idea: to leverage nascent computer technology to make financial services more accessible. At this time, trading was predominantly a face-to-face or phone-based affair, heavily reliant on traditional brokers. Porter envisioned a future where individuals could trade securities directly and at a lower cost.
Sub-heading: The First Online Trade (1983)
The very next year, in 1983, TradePlus achieved a significant milestone: it launched its first online trade via a CompuServe network. This was a groundbreaking moment, marking one of the earliest instances of electronic trading for individual investors. For the remainder of the 1980s, TradePlus focused on providing online quote and trading services to other discount brokers, essentially laying the technological groundwork for what would become E*TRADE.
Step 3: The Birth of E*TRADE Securities (1992)
While TradePlus was busy enabling other brokers, Porter wasn't satisfied. He wanted to bring low-cost online trading directly to individual investors.
QuickTip: Slow down when you hit numbers or data.
Sub-heading: Pioneering Direct-to-Consumer Online Brokerage
In 1992, William Porter, along with Bernard A. Newcomb, founded E*TRADE Securities Inc. This was the true beginning of E*TRADE as we know it – one of the first all-electronic discount brokerage firms to offer flat-rate fees and free information online through platforms like America Online and CompuServe. This move was a direct challenge to the established brokerage houses with their high commission fees.
Step 4: Rapid Growth and Public Offering (1990s)
The 1990s were a period of explosive growth for E*TRADE, fueled by the burgeoning internet and a growing interest in self-directed investing.
Sub-heading: From Startup to Sensation
From 1993 to 1995, ETRADE (and its parent TradePlus) was recognized as the fastest-growing private company in Silicon Valley. Revenues soared, demonstrating the immense demand for accessible and affordable trading. By 1994, the company adopted the name **ETRADE Group**.
Tip: Focus on one point at a time.
Sub-heading: Going Public and the Dot-Com Boom
A pivotal moment arrived on August 16, 1996, when E*TRADE Financial Corporation became a public company via an initial public offering (IPO). This solidified its position as a major player in the financial landscape. The launch of its own website, etrade.com, in the same year further propelled its growth. E*TRADE became a prominent symbol of the dot-com boom, representing both a way to speculate in internet stocks and being an internet stock itself.
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Step 5: Diversification and Evolution (2000s and Beyond)
E*TRADE continued to evolve, expanding its offerings beyond just brokerage services.
Sub-heading: Expanding into Banking and Beyond
Tip: A slow, careful read can save re-reading later.
In April 2000, ETRADE launched **ETRADE Bank** after acquiring Telebanc Financial Corp., becoming the largest internet bank in the United States at the time. This move underscored its commitment to offering diversified financial services. Throughout the 2000s, E*TRADE made various acquisitions and divestitures, continually adapting to market demands and technological advancements. It even offered wireless banking and brokerage services as early as October 2000!
Sub-heading: The Morgan Stanley Acquisition (2020)
A significant development in ETRADE's recent history occurred in October 2020, when the company was acquired by Morgan Stanley. While ETRADE continues to operate under its well-known brand, it is now a subsidiary of one of the world's leading financial services firms. This acquisition reflects the ongoing consolidation in the financial industry and Morgan Stanley's strategic move to expand its reach into the self-directed investing market.
Step 6: How Long Has E*TRADE Been in Business? The Final Count!
So, to answer the central question:
E*TRADE, in its earliest form as TradePlus, began operations in 1982.
The first online trade occurred in 1983.
E*TRADE Securities Inc. was formally established in 1992.
Therefore, as of July 2025, ETRADE (or its direct predecessor that laid the foundation) has been involved in the financial services industry for approximately 43 years since the founding of TradePlus, and 33 years since the formal establishment of ETRADE Securities. That's a remarkable track record in a sector known for its rapid changes and intense competition!
Frequently Asked Questions (FAQs)
Here are 10 related "How to" questions with quick answers about E*TRADE:
How to open an E*TRADE account? You can open an account online by choosing your desired account type (brokerage, retirement, etc.) and completing the application.
How to fund an E*TRADE account? You can fund your account electronically (transfer money), by check, wire transfer, or by transferring an existing account from another firm.
How to place a trade on E*TRADE? E*TRADE provides digital platforms and tools to easily place trades for stocks, options, ETFs, mutual funds, and more.
How to access tax information and forms on E*TRADE? Visit the Tax Center on the E*TRADE website for all your tax-related needs.
How to reset your E*TRADE User ID or Password? E*TRADE makes it easy to retrieve your User ID and reset your password online through their website.
How to contact E*TRADE customer service? You can typically contact E*TRADE customer service via phone, email, or online chat, and they also have financial centers.
How to set up a direct deposit with E*TRADE? You can set up direct deposit directly with your employer or payment provider into your E*TRADE bank or brokerage accounts.
How to transfer an account from another firm to E*TRADE? E*TRADE offers an electronic transfer service during the application process or you can mail a paper request.
How to understand E*TRADE commissions and fees? E*TRADE generally offers $0 commissions for online US-listed stock, ETF, mutual fund, and options trades, but other rates and fees may apply. Check their website for a detailed fee schedule.
How to learn more about E*TRADE's asset protection? E*TRADE is a member of SIPC, which protects securities up to $500,000. Additional protection may also be in place; details are available on their website.
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