Citigroup May Give E*Trade a Boost

Citigroup stock's huge trading volumes may give a much needed shot in the arm to E*Trade and other online brokers.
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NEW YORK (

TheStreet

) --

Citigroup

(C) - Get Report

stock's huge trading volumes may give a much needed shot in the arm to

E*Trade

(ETFC) - Get Report

and other online brokers.

The big surge in shares of beaten-down financial names has lifted revenues at electronic trading platform

Direct Edge

,

The Wall Street Journal

reported Thursday. In an interview with the newspaper, Direct Edge CEO William O'Brien specifically mentioned Citigroup, along with

Fannie Mae

and

CIT Group

(CIT) - Get Report

.

O'Brien went on to say the trend "doesn't necessarily" favor his platform over rivals like

NYSE Euronext

(NYX)

and

Nasdaq OMX Group

I:IXIC

. Translation: Everybody wins, and all those companies should get a revenue boost.

But what about online brokers? There's no reason the trend shouldn't benefit them as well. Look for a nice surprise at

Charles Schwab

(SCHW) - Get Report

,

TD Ameritrade

(AMTD) - Get Report

,

TradeStation Group

(TRAD)

,

Options Express

and

Raymond James

(RJF) - Get Report

.

Of course, these trades in zombie stocks, which, ironically enough, include E*Trade itself, aren't going to radically change the earnings profile for any of the online brokers, but it's worth taking into account when sizing up their earnings potential for the quarter.

--

Written by Dan Freed in New York

.