E*Trade and Charles Schwab see drop-off in trades

Maybe they should offer a daily deal as well?

E*Trade said its November trading volume dropped 11% from the prior year while total delinquencies climbed 5% from October as volatile markets and European concerns continue to keep investors on the sidelines. Daily average revenue trades in November were 141,361, down 10% from the prior month.

On top of the trading declines, the company’s loan book continued its ongoing struggles. Special mention delinquencies, loans that are 30-89 days delinquent, increased from the prior month while total gross loans receivable fell 2% month over month to $13.8 billion. E*Trade’s loan book has failed to gain traction over the past four years as the U.S. housing market continues to be soft.

Separately, rival Charles Schwab said that its Q4 earnings will likely fall by $0.04-0.06 from Q3 as its trading volume also slid. Clients made an average of 433,500 trades per day in November, down 15% from October. CEO Joe Martinetto said trading activity continued to be slow to start December, down about 8% from November.

E*Trade Financial (ETFC : NASDAQ : US$8.13), Net Change: -0.45, % Change: -5.24%, Volume: 13,842,184
Charles Schwab (SCHW : NYSE : US$10.97), Net Change: -0.56, % Change: -4.86%, Volume: 25,076,684

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx

About the Author

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.

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