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See Full StoryNot only has there been a dramatic drop in new
accounts opened at online brokerages, but
trading volumes are way down as well. Major players
are cutting staff and reporting losses. Mirroring the dot-com shakeout, the Internet
brokerage sector may be heading into a shakeout of its own.
"The downturn in the market has been a double whammy for
the online brokerage firms,"
Chuck Callan, head of the North American financial services practice
at the Boston Consulting Group (BCG), told the E-Commerce Times.
Re: Shakeout Time for Internet Brokerages - Part I
Posted by: Clarence 2001-05-09 13:36:26 In reply to: ECT News
"What that means is that Ameritrade and Datek are the only online brokers in the less than US$10 per trade market," Clemmer said. "So I think you are going to see a lot of SureTrade customers fleeing Credit Suisse and heading over to what Ameritrade and Datek are offering."
What about Scottrade at $7.00 per trade?
Re: Shakeout Time for Internet Brokerages - Part I
Posted by: Rich 2001-05-09 12:05:36 In reply to: ECT News
You forgot to mention one on-line trading company, or should I say that Mr. Clemmer didn't mention such, in that, ..."What that means is that Ameritrade and Datek are the only online brokers in the less than US$10 per trade market,"... this is not true. At the very least I disagree.
Senior analyst Kenneth Clemmer told the E-Commerce Times that there is little that brokers can do to "differentiate themselves" on the Internet. Again, I do not beleive that. Case in point. Take a look at Scottrade' real-time streaming quote system (www.scottrade.com) using an eloquent java based front-end that provides fast executions, charts, low commissions ($7.00 w/o assistance on market orders - unlimited shares) and over 120 offices nationwide to serve it's customers. They have been in business since 1980 for heavens sake. I'm curious to know why Mr. Clemmer failed to mention this brokerage firm.
The higher it seems you go in the food chain of 'Market Analysts' the less they seem to understand about their own business. A rather biased opinion on my part, but one I also see and hold true in other businesses as well (ex. the telecomm industry). Food for thought...
pardon the pun.
