-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 JO/wOFEN5XApwy7eIuOwstq82T7SdBw2Fnpve7PFjylOm/wlNUNUBsWMFGLMV79Y
 vq/j2e/5Dnoe1QCeIWuOFA==

<SEC-DOCUMENT>0001181431-10-027426.txt : 20100517
<SEC-HEADER>0001181431-10-027426.hdr.sgml : 20100517
<ACCEPTANCE-DATETIME>20100517190510
ACCESSION NUMBER:		0001181431-10-027426
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20100513
FILED AS OF DATE:		20100517
DATE AS OF CHANGE:		20100517

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SCLAFANI JOSEPH L
		CENTRAL INDEX KEY:			0001179584

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11921
		FILM NUMBER:		10840673

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			E TRADE FINANCIAL CORP
		CENTRAL INDEX KEY:			0001015780
		STANDARD INDUSTRIAL CLASSIFICATION:	SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
		IRS NUMBER:				942844166
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		135 E. 57TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		6503316000

	MAIL ADDRESS:	
		STREET 1:		135 E. 57TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	E TRADE GROUP INC
		DATE OF NAME CHANGE:	19960531
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd276015.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2010-05-13</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001015780</issuerCik>
        <issuerName>E TRADE FINANCIAL CORP</issuerName>
        <issuerTradingSymbol>ETFC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001179584</rptOwnerCik>
            <rptOwnerName>SCLAFANI JOSEPH L</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O E*TRADE FINANCIAL</rptOwnerStreet1>
            <rptOwnerStreet2>CORPORATION, 135 E. 57TH STREET</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2010-05-13</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>30959</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>56254</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Grant of restricted stock vesting over 2 years in approximately equal installments, whereby 15,480 shares vest 1 year from grant and 15,479 shares vest 2 years from grant date.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Karl A. Roessner, Attorney-in-Fact for Joseph L. Sclafani</signatureName>
        <signatureDate>2010-05-17</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----