Prominent figures such as Charles Schwab have recently criticized high-frequency trading, a significant source of the financial services company's revenue. Such criticisms have led to growing concern that regulators could take aim at such practices.
Reuters describes this process as "payment-for-order-flow," in which E*TRADE receives payments from professional trading firms in exchange for hundreds of thousands of orders that brokerages send to those firms.
The stock was down 5.91% to $20.85 at 11:24 a.m. on Friday.Must Read: Warren Buffett's 10 Favorite Growth Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts