Shares trading on the Nasdaq might have screamed to 2.8 billion Thursday, but overall, trading has been slower for months now. Companies selling online trading services have dealt with the ugly climate by laying off workers (Ameritrade Holding Corp.) and cutting exec salaries (Charles Schwab & Co. Inc.).

Then there's E-Trade Group Inc., which is diversifying its operations to take some of the sting out of trading doldrums. It's a strategy, being employed by E-Trade competitors, too, that analysts think will separate winners from losers.

E-Trade says it's buying online mortgage service LoansDirect Inc., which sells a range of mortgages and home-improvement loans. Once the all-stock deal is closed, LoansDirect will be a subsidiary of E-Trade Bank, replacing E-Loan as E-Trade's preferred mortgage lender. Terms of the deal weren't disclosed. It's expected to close in the second quarter, pending approvals.

Speaking with InformationWeek earlier this week, Gartner analyst Avivah Litan said the online trading market will be whittled to one or two brokerages. Survivors, says Gomez Advisors research analyst Matt Carrick, will be those with full-fledged financial services, selling financial advice, bank services, and loans along with trading.

"Online brokers that are reliant on trading volume as a chunk of their revenue are starting to feel the pinch," Carrick says. Diversifying not only dilutes some risk, but it also will lure a new breed of online investor that will need these services, he says. "The next wave of investors to move online are less sophisticated with using the Internet and investing. They will need a more personal touch that a full-service adviser would provide, but in an online environment."