Retail Goes All-In: E-Trade Adds 37,100 New Accounts, Up 154%

We showed previously that as the broader market was melting up in a blow off top move, retail investors just couldn't get enough: this is shown best in the following brokerage DART chart  from Sentiment Trader.

This morning E-Trade confirmed that  in January, with the stock market entering its parabolic-est move - just before the volocaust crushed countless retail vol-sellers, retail investors just couldn't get enough, and the retail brokerage added a whopping 64,581 gross new brokerage accounts in Jan. closing the month with 3.7 million brokerage accounts, a net increase of 37,102 from December, 154% higher Y/Y.

The company also reported that net new brokerage assets were $1.5 billion in the month. During the month, customer security holdings increased by $17.4 billion, while brokerage-related cash barely moved, rising by just $0.1 billion to $53.0 billion. Customer margin balances increased $0.3 billion, ending the month at $9.4 billion.

The brokerage also reported that customers were net buyers of approximately $1.5 billion in securities during the month.

Meanwhile, the DART chart continue to rise, and January Daily Average Revenue Trades or DARTs increased 29% from December to 315,572 and a whopping 57% Y/Y.

Much more interesting, however, will be the February data - did last week's correction spook retail investors, or did they simply double down, expecting a central bank bailout in a worst case scenario.

The full breakdown below.

Comments

The Ram Mon, 02/12/2018 - 08:59 Permalink

Yes, Great time to buy into the extreme volatility!  Step right up....put your pension on the line!  Play the stock market boom or bust lottery on a daily basis.  Results guaranteed!  Suckers are born everyday ...... (paraphrase of PT Barnum).

idontcare Mon, 02/12/2018 - 09:03 Permalink

It's all good!  JPM just came on Bloomberg at 855a saying that the "correction" was over & it's all up from here (especially in financials).  

[Let's hope these new "Etraders" are for their own sakes traders & not of the buy long & "hold until U 2 R a billionaire" mentality.]

silverer Mon, 02/12/2018 - 09:06 Permalink

But the dip! Buy the slide! Buy the crash! Buy anything! While you're at it, store extra food and water for about five years supply, and buy a 1950's car that runs after an EMP event. Those would be your best investments ever. (You can use your dollars and other paper investments to wipe with).

surf@jm Mon, 02/12/2018 - 09:09 Permalink

Uh.....Duhhhh......

Etrade bought out Scottrade........

They are rolling Scottrades accounts into Etrade this month.........

Your telling me that they are pretending that these are new accounts?.......

rejected Mon, 02/12/2018 - 10:13 Permalink

Ten percent of the population own 90% of the stocks. Shouldn't take a rocket scientist to see who is losing and who is gaining.

When will they learn.