SOURCE: The Bedford Report

The Bedford Report

September 15, 2011 08:16 ET

Consolidation Expected in Online Brokerage Sector

The Bedford Report Provides Equity Research on E*TRADE Financial & Charles Schwab

NEW YORK, NY--(Marketwire - Sep 15, 2011) - As brokerages emerge from the summer, companies in the sector are looking for new ways to grow their service offerings. Brokerages have been working to motivate investors to increase trading volumes by moving strongly toward lower commission schedules and commission free ETFs. The Bedford Report examines the outlook for companies in the Investment Brokerage - National Industry and provides investment research on E*TRADE Financial Corporation (NASDAQ: ETFC) and Charles Schwab Corporation (NYSE: SCHW). Access to the full company reports can be found at:

Online brokerages reported strong growth in August daily client trading, sparked by the big sell-off in stocks early in the month. Citigroup analysts said in a note that "The jump in trading activity reflects the spike in market volatility as The CBOE Volatility Index reached its highest level in more than a year."

E*Trade Financial posted a massive 34 percent month-to-month jump in August trading volumes. One major pieces of news in the brokerage sector has been E*Trade Financial Corporation's movement towards a sale. Shares of the company skyrocketed this summer after Citadel, the online brokerage's largest investor, called on E*Trade to explore a sale.

The Bedford Report releases stock research on the Investment Brokerage - National Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

Charles Schwab had been rumoured to be in consideration as a possible E*Trade buyer, according to Reuters. Earlier this summer Charles Schwab Corporation announced that it completed its acquisition of optionsXpress Holdings -- a retail online brokerage company focusing mainly on equity options and future acquisitions. The all-stock acquisition deal was valued at $1.0 billion.

Based on first half data, Schwab has about 8.2 million client brokerage accounts and $1.65 trillion in client assets, and is adding optionsXpress's 397,400 client accounts, $8.4 billion in client assets and a 12 month average of 44,900 daily average revenue trades.

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