Updates to the Customer Relationship Summary dated December 30, 2022

Dear ,
Account ending in: xxxx

Your E*TRADE Securities account statement is now ready and available online. To access it, please log on via the link below.

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2022년 12월 30일자 고객 관계 요약 업데이트

E*TRADE 고객 관계 요약은 2021년 10월 1일의 마지막 업데이트 이후 추가 개정으로 업데이트되고 있습니다. 아래에 가장 중요한 변경 사항을 요약 했지만 etrade.com/ 에서 제공되는 고객 관계 요약을 검토하십시오. .formcrs .

2022년 12월 30일부터 고객 관계 요약에 적용되는 변경 사항 요약:

• E*TRADE Capital Management("ETCM")는 더 이상 핵심 포트폴리오 이외의 제품에 대해 새 계좌를 개설하지 않습니다.
• 2023년 2분기 후반에는 핵심 포트폴리오가 기존 E*TRADE 고객에게만 제공됩니다.
• E*TRADE Securities는 투자 추천을 하지 않을 것이며 더 이상 ETCM을 통한 투자 자문 계좌 개설에 관한 추천을 하지 않을 것입니다.
• E*TRADE Securities는 더 이상 뮤추얼 펀드를 사거나 팔 때 수수료를 부과하지 않습니다.
• 우리 금융 전문가들이 더 이상 투자/자문 계정 추천을 하지 않기 때문에 우리 금융 전문가들이 돈을 버는 방법에 대한 답변을 추가로 수정했습니다. 그들의 역할에 따라 보상은 새로운 자산과 기존 자산의 유지 및 Morgan Stanley 계열사에 대한 추천을 기반으로 합니다. 일부 대표자는 소개 또는 새로운 자산에 대해 보상을 받지 않고 급여 및 임의 보상을 받습니다.

 

E*TRADE SECURITIES LLC AND E*TRADE CAPITAL MANAGEMENT, LLC 

Relationship Summary, effective December 30, 2022 

E*TRADE Securities LLC (ETS) is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). ETS was founded in 1982 and conducted its first online trade in 1983. E*TRADE Capital Management, LLC (ETCM), an affiliate of ETS, is registered with the SEC as an investment adviser.1 ETCM began offering investment advisory services under its current name in 2008. ETS and ETCM provide online brokerage, investment advisory services, and related products and services primarily to retail investors. ETS and ETCM are indirect subsidiaries of Morgan Stanley, a leading global financial services firm providing a wide range of investment banking, securities, wealth management, and investment management services. For more information, please refer to morganstanley.com/about-us-newsroom. The brokerage services offered by ETS, and the fees for those services, are different from the investment advisory services provided by ETCM, and it’s important for you to understand the differences. You should consider these differences when deciding what type or combination of services and accounts are right for you. 

Throughout 2023, ETS and ETCM will be transitioning clients to Morgan Stanley Smith Barney LLC, an affiliated broker-dealer and investment adviser (MSSB). Clients will be given advanced notice of their transition date along with detailed information regarding the transition. Learn more about this transition at etrade.com/mssb. 

We are required to share this summary to help you understand the different services ETS and ETCM provide, allowing you to make more informed decisions. Please do not hesitate to call us at 800-387-2331 with any questions. Free and simple tools are available to research firms and financial professionals at investor.gov/crs, which also provides educational materials about broker-dealers, investment advisers, and investing.

WHAT INVESTMENT SERVICES AND ADVICE CAN YOU PROVIDE ME? 

	E*TRADE Securities (ETS)	E*TRADE Capital Management (ETCM)
Description of Services	ETS offers brokerage services to retail investors and participants in equity compensation programs of employers who are clients of E*TRADE Financial Corporate Services, Inc. and MSSB (through its Morgan Stanley at Work division), affiliates of ETS. Our primary business is helping customers with orders to buy and sell stocks, exchange-traded funds (ETFs), mutual funds, fixed income investments, and other securities or investment strategies such as trading options and margin. To assist and educate customers, ETS also offers investor education, research, and financial tools, free of charge. ETS may also refer you to Morgan Stanley affiliates providing a variety of services and its educational tools can include Morgan Stanley branded products.  As of January 3, 2023, ETS makes no investment recommendations. ETS also no longer makes recommendations regarding opening an investment advisory account with ETCM.	ETCM offers discretionary investment advisory services. Discretionary means that we or an unaffiliated money manager make trades for you based on your selected portfolio strategy without consulting you in advance of making trades. Depending on the program selected, your account may be invested in mutual funds, ETFs, stocks, and/or fixed income securities.  Some types of E*TRADE accounts are not eligible for all ETCM offerings. Customers accessing Core Portfolios (available online or through mobile) do not receive advice about whether or not to open a Core Portfolios advisory account.  As of January 3, 2023, ETCM is only offering the advisory program called Core Portfolios. All other offerings are closed to new accounts. In addition, sometime in the latter half of the second quarter of 2023, Core Portfolios will only be available to existing E*TRADE customers.
Monitoring	ETS does not provide agreed-upon monitoring for your account. As mentioned above, this means that ETS does not check your asset allocation or fluctuations in your investments on an ongoing basis.	On a daily basis, ETCM monitors your ETCM account activity, the investments in your ETCM accounts, and how well your ETCM account aligns with your investment strategy, but we do not try to time the market (i.e., make trades for you at the “perfect time”).  Account rebalancing depends on the product and is based on how much the asset allocation moves away from your investment strategy and/or calendar rebalancing. ETCM monitors only  ETCM accounts.
Investment Authority	ETS has no authority to make investments in your account without your instruction. Accordingly, you make all investment decisions.	ETCM’s authority to act on your behalf is limited to managing your portfolio (onboarding, monitoring, rebalancing) and lasts until your ETCM account is closed.
Account Minimums and Other Requirements	There is no minimum required to open an account. Funding and documentation requirements to start investing at ETS will be provided at account opening. However, to maintain an account, funding is required.	There are minimum deposit amounts and documentation for each ETCM offering, which can be found at etrade.com/managed.
Limited Investment Offerings	For brokerage accounts, ETS makes available mutual funds, ETFs, equities, bonds, futures (through an affiliate), and options (for eligible clients). The use of margin is also permitted for eligible ETS accounts.	ETCM accounts, depending on the product, invest in mutual funds, ETFs, equities, and bonds. Futures, options, and the use of margin are not available for ETCM accounts. We may also limit the offerings available to you based on eligibility requirements or account type.
Additional Information	You may review the E*TRADE Relationship Guide at etrade.com/relationshipguide and the E*TRADE Customer Agreement at etrade.com/custagree.	You can see additional information about how we select investments as well as how we provide investment advisory services by reviewing ETCM’s Wrap Fee Programs Brochure at etrade.com/programsbrochure or the ETCM Advisory Agreement at etrade.com/etcmadvisoryagreement.

 

 

	Can ETS recommend to me?	Can ETCM advise me?
Brokerage versus Advisory Account	X	(only as to existing ETCM accounts)
Type of Brokerage or Advisory Account to Open  (e.g., joint or individual, retirement or retail, Roth or Traditional IRA)	X	X
Asset Allocation	X	(only as to your existing ETCM accounts)
ETFs	X	(only as to your existing ETCM accounts)
Equities (stocks)	X	(only for existing Dedicated Portfolios accounts*)
Fixed Income (bonds)	X	(only for existing Fixed Income Portfolios accounts**)
Distribution from Retirement Plan (or subsequent rollover)	X	X
Futures (via an affiliate)	X	X
Mutual Funds	X	(only for existing non-Core Portfolios accounts)
Options	X	X
Use of Margin	X	X
Fully Paid Securities Lending	X	X
Alternative Investments	X	X
Bank Products and Cash Management  (through affiliates and ETS, as applicable)	X	X
Tax or Legal Advice	X	X
Initial Public Offerings (IPOs) and Follow-on Offerings	X	X

 

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