E*TRADE (Nasdaq:ETFC), AMERITRADE (Nasdaq:AMTD), Charles Schwab (Nasdaq:SCHW) Improving with E-Broker Sector

The overall e-broker sector has been improving, and E*TRADE (Nasdaq:ETFC), AMERITRADE (Nasdaq:AMTD) and Charles Schwab (Nasdaq:SCHW) all looking to improve in various degrees in 2011.

Barclays (NYSE:BCS) commented on the sector saying, "November was an incrementally positive month for the e-brokers, in our view, as retail trading volumes continue to outpace broader exchange volumes and net inflows appear to remain healthy into the end of the year...."

For the three companies they noted, "... with rising delinquencies in certain slices of ETFC's 1-4 family and HELOC loan portfolios, the incremental credit costs to support these delinquencies more than offset the positives seen in ETFC's core e-broker, resulting in a downward revision for ETFC's 4Q10 EPS from $0.06 to $0.03 (incl. a $0.04 tax true-up benefit)."

"AMERITRADE: While our quarterly and annual estimates for AMTD have not changed (f1Q11 remains $0.25 vs. the Street consensus of $0.24), we have made some modest adjustments to some individual assumptions and revenue lines, slightly lowering our DARTs forecast and average IDA balance, offset by a small upward revision to fee-based asset balances and quarter-end customer assets. (PT increased by $1 to $20)"

"Charles Schwab: Following the better-than-expected trading volumes and equity market rally positively influencing commissions and asset management fees, respectively, we are raising SCHW's 4Q10 EPS estimate from $0.17 to $0.18. Due to the incrementally more challenging interest rate environment persisting for the duration of the quarter, we continue to expect $110mm of money market fee waivers in 4Q10, up notably vs. the $93mm in 3Q10. (PT increased by $1 to $17)"

E*TRADE closed Thursday at $15.10, up $0.06, or 0.40 percent. TD Ameritrade closed at $18.86, up $0.32, or 1.73 percent. Charles Schwab closed the session at $17.00, up $0.21, or 1.25 percent.