Axos Financial Completes Strategic Acquisition of E*TRADE Advisor Services Business

Axos Financial, Inc. (NYSE: AX) has successfully closed its acquisition of ETRADE Advisor Services, the registered investment advisor custody platform that Morgan Stanley obtained through its 2020 acquisition of ETRADE Financial Corporation. This transaction marks a significant milestone in Axos’ expansion within the wealth management and RIA custody space.

At the time of the acquisition, E*TRADE Advisor Services managed approximately $24.8 billion in assets under custody, with $1.2 billion designated as client cash sweeps. Following the close, the business has been renamed Axos Advisor Services and now operates as a specialized division within Axos Clearing LLC, integrating seamlessly into the parent company’s broader custody infrastructure.

Strategic Significance and Market Position

Gregory Garrabrants, President and Chief Executive Officer of Axos Financial, highlighted the operational efficiency achieved during the transition: “The rebranding and conversion process was completed in under four months, with all necessary regulatory approvals obtained.” This accelerated timeline demonstrates the technical capability and regulatory coordination between both organizations.

The acquisition provides Axos with immediate scale in the RIA custody market. Axos Advisor Services now serves 200 registered investment advisor relationships with combined assets under custody reaching approximately $25 billion. This expansion significantly shortens the company’s path to becoming a major player in the independent advisor custody segment.

Growth Opportunities Ahead

The integration opens substantial avenues for service expansion. Axos Financial plans to leverage its existing banking and securities infrastructure to offer enhanced solutions tailored to independent RIAs, their advisors, and end clients. The combination of deposit-taking capabilities through Axos Bank with custody services through Axos Clearing LLC creates a comprehensive ecosystem for wealth managers seeking alternative platforms.

About Axos Financial, Inc.

Axos Financial, Inc. serves as the parent holding company for three primary subsidiaries: Axos Bank, Axos Clearing LLC, and Axos Invest, Inc. Axos Bank operates nationwide with approximately $14.3 billion in total assets, delivering consumer and business banking services through cost-efficient digital channels and strategic partnerships. Axos Clearing LLC manages approximately $41 billion in assets under custody and administration, providing securities clearing services to introducing broker-dealers and RIA correspondents. Axos Invest, Inc. offers digital investment advisory services to retail clients. The company’s common stock trades on the NYSE under ticker symbol “AX” and maintains inclusion in the Russell 2000 Index, the KBW Nasdaq Financial Technology Index, and the S&P SmallCap 600 Index.