SOURCE: Paragon Financial Limited

Paragon Financial Limited

November 03, 2011 08:16 ET

E*Trade and Charles Schwab Continue to Benefit From Market Volatility

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

NEW YORK, NY--(Marketwire - Nov 3, 2011) - Brokerage stocks have been performing well of late as market volatility caused by the Eurozone debt crisis has helped these firms in the form of significantly higher trading volume. In recent quarters brokerages have been working to motivate investors to increase trading volumes by moving strongly toward lower commission schedules and commission free ETFs. The Paragon 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 (NASDAQ: SCHW). Access to the full company reports can be found at:

Further easing of the debt crisis in Europe would certainly be a benefit to the financial sector as a whole, but could also drastically reduce market volatility which in turn could lead to reductions in trade volumes. However, the European debt crisis is hardly the only source of unrest in the markets and even a resolution in the region may not put an end to the fluctuations seen in the markets in the last few months.

As The Wall Street Journal reports, "JMP Securities see some downside. Turbulent markets, they note, benefit transaction-oriented brokerages like E*Trade Financial... yet can also cut into asset fees for brokers like Charles Schwab Corp. as retail investors jump out of the fray."

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Investment Brokerage - National Industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Both Charles Schwab and E*Trade were able to substantially grow income in the third quarter. Schwab saw net income of $220 million in the quarter, a 77% improvement over the same period last year. E*Trade saw net income of $71 million in the quarter, a significant improvement over the prior quarter's $47 million and a staggering improvement over the same period last year.

E-Trade, which returned to profitability this year, recently began a strategic review at the behest of its largest shareholder, hedge fund Citadel LLC that could lead to E-trade's sale. Prospective suitors include Schwab and Capital One Financial Corp.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at