On April 4, 2013, FINRA announced that it had censured and fined E*Trade Securities LLC  $30,000.00.  The fine was based on the amount of  excess commissions as well as other excess commissions self-identified and self-reported by firms that are not the subject of the formal charges.

Between July 1, 2009 and September 30, 2009, E*Trade Securities charged a fixed charge of $1.00 per bond for online corporate bond purchases.  In 14 transactions in low priced bonds, this charge was in excess of a fair and reasonable amount, taking into consideration all relevant factors, including the availability of the securities involved in the transaction, the expense of executing or filling the customer’s order, the value of the securities rendered by the firm, and the amount of any other compensation received or to be received by the firm in connection with the transaction.  As a result, the Firm violated NASD Rule 2440.

In settling this matter, E*Trade Securities LLC neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.