<PAGE>
Filed Pursuant to Rule 424(b)(3)
Registration No. 333-35802
Prospectus Supplement No. 3 dated August 1, 2000
to Prospectus dated May 19, 2000, as supplemented
on June 21, 2000 and July 19, 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>
BT Equity Opportunities.............................. $ 750,000 * 31,780
BT Equity Strategies................................. $ 750,000 * 31,780
Putnam Asset Allocation Funds - Balanced
Portfolio............................................ $ 51,000 * 2,161
Putnam Asset Allocation Funds - Conservative
Portfolio............................................ $ 32,000 * 1,356
Putnam Balanced Retirement Fund...................... $ 15,000 * 636
Putnam Convertible Opportunities and Income Trust.... $ 20,000 * 847
Spear, Leeds & Kellogg............................... $ 1,000,000 * 42,373
TCW Group Inc........................................ $29,735,000 4.6% 1,259,958
</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>
Donaldson, Lufkin & Jenrette Securities Corp.......... $ 45,743,000 7.0% 1,938,263
Deutsche Bank Securities Inc.......................... $104,450,000 16.1% 4,425,847
Goldman Sachs and Company............................. $ 2,830,000 * 119,915
Robertson Stephens.................................... $ 30,000,000 4.6% 1,271,186
Other holders of notes or future transferees of such
holders (3)........................................... $ 20,304,000 3.0% 860,339
</TABLE>
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