<PAGE>
Filed Pursuant to Rule 424(b)(3)
Registration No. 333-35802
Prospectus Supplement No. 2 dated July 19, 2000
to Prospectus dated May 19, 2000, as supplemented
on June 21, 2000
E*TRADE Group, Inc.
$650,000,000 6% Convertible Subordinated Notes due February 1, 2007
and
27,542,373 Shares of Common Stock Issuable upon Conversion of the Notes
The information contained in the table appearing under the heading "Selling
Securityholders" on pages 43-44 of the prospectus is hereby amended to add the
following information:
<TABLE>
<CAPTION>
Shares of
Principal Amount Percentage of Common Stock
of Notes that Notes that May Be
Name of Selling Securityholder May Be Sold Outstanding Sold(1)
------------------------------ ---------------- ------------- ------------
<S> <C> <C> <C>
Donaldson, Lufkin & Jenrette Securities Corp........ $2,500,000 * 105,932
Goldman Sachs and Company........................... $2,320,000 * 98,306
ING Barrings LLC.................................... $ 250,000 * 10,593
Jeffries & Co....................................... $ 260,000 * 11,017
Museum of Fine Arts, Boston......................... $ 8,000 * 339
Parker-Hannifin Corporation......................... $ 13,000 * 551
ProMutual........................................... $ 28,000 * 1,186
University of Rochester............................. $ 7,000 * 297
</TABLE>
The information contained in the table appearing under the heading "Selling
Securityholders" on pages 43-44 of the prospectus with respect to the Selling
Securityholders named below is hereby deleted and restated with the following
information:
<TABLE>
<CAPTION>
Shares of
Principal Amount Percentage of Common Stock
of Notes that Notes that May Be
Name of Selling Securityholder May Be Sold Outstanding Sold(1)
------------------------------ ---------------- ------------- ------------
<S> <C> <C> <C>
Other holders of notes or future transferees of
such holders (3)................................... $31,260,000 4.8% 1,324,577
</TABLE>
