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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)  February 25, 1997

E*TRADE Group, Inc.
(Exact name of registrant as specified in charter)

            Delaware               1-11921           94-2844166
(State or other jurisdiction     (Commission        (IRS Employer
of incorporation)                File Number)     Identification No.)

Four Embarcadero Place, 2400 Geng Rd., Palo Alto, CA            94303
(Address of principal executive offices)                      (Zip Code)

Registrant's telephone number, including area code  (415) 842-2500

                                None
(Former name or former address, if changed since last report)
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Item 5.  Other Events.

E*TRADE Group, Inc. (Nasdaq: EGRP), a leading provider of online investing 
services, announced a strategic partnership with Microsoft (Nasdaq: MSFT) 
which will immediately integrate E*TRADE's online investing services into 
the Microsoft Investor online trading area (http://investor.com). E*TRADE 
also announced its support of Microsoft's Open Financial Exchange 
specification.

This new partnership will give Microsoft Investor and Microsoft Money users 
direct access to E*TRADE's online investing services where they can receive 
free value-added news, research and charts and invest online at low 
commission rates. Support for Open Financial Exchange will enable E*TRADE 
customers to seamlessly consolidate their E*TRADE portfolio information with 
personal financial software such as Microsoft Investor, Microsoft Money, and 
other Open Financial Exchange compliant software. Open Financial Exchange 
provides an open specification for the electronic exchange of financial data 
between financial service providers and personal finance applications.

E*TRADE Group, Inc. is an electronic financial services company and, through 
its subsidiary, E*TRADE Securities, Inc., is a leading provider of online 
investing services. E*TRADE offers independent investors the convenience and 
control of online access to securities markets, and access to value-added 
financial information such as news, charts, and fundamental data, along with 
low commission rates on  trades. Customers can access E*TRADE at 
http://www.etrade.com on the Internet; via direct modem connection; and via 
the touchtone telephone TELE*MASTER system. E*TRADE Securities and its 
parent company, E*TRADE Group, Inc., are headquartered in Palo Alto, 
California.

E*TRADE is a registered trademark of the Company. TELE*MASTER is a trademark 
of E*TRADE Securities, Inc. All other trademarks are properties of their 
respective owners. The statements contained in this Form-8-K that are 
forward looking are based on current expectations that are subject to a 
number of uncertainties and risks, and actual results may differ materially. 
The uncertainties and risks include, but are not limited to, the development 
of new products and services, the enhancement of existing products and 
services, competitive pressures, system failures, economic conditions and 
the introduction of competing products having technological and/or other 
advantages. Further information about these matters can be found in the risk 
factors included in the annual report filed by the company on Form 10-K.

Item 7. Exhibits.

20.1    Retraction of press release issued on Monday February 24, 1997.

20.2    Correct press release issued on Monday February 27, 1997
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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has duly caused this report to be signed on its behalf by the 
undersigned there-unto duly authorized.

E*TRADE GROUP, INC.  

DATE:  February __, 1997   By:  /s/ Christos M. Cotsakos
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                                Name: Christos M. Cotsakos
                                Title: President and Chief Executive Officer