Published:
Narrowing the Gap Between Discount and Full Service Brokers
There are now at least 60 discount brokerage houses
out there battling the full service brokerage houses for investors. More
and more investors are turning to these discount brokers offering flat rate
commissions around $10 and even lower at times, a significant reduction to
the sometimes astronomical commissions charged by full service brokers.
These online brokers are getting stronger by the day, Tradestation (NASDAQ: TRAD), a prime example, is a smaller broker but an industry leader. The
company increased customer accounts by 14% and client assets by 15%, to
over $1.25 billion, in the first quarter of 2005.
Additionally, some of the discount broker monsters have been growing
through take-overs. In the past 4 years Ameritrade (NASDAQ: AMTD) alone
has acquired 8 brokers, including the most recent acquisition of TD
Waterhouse. Since May, take over talks have been really heating up and
moving the sector. Shares of companies like Charles Schwab (NYSE: SCH) and
E*Trade Financial (NYSE: ET) surely appreciated the gains realized from
rumored acquisition talks.
Online trading has exploded over the past year as investors are becoming
more self-sufficient and comfortable using their computers for investing.
This is still a relatively young sector with plenty of room for growth.
There is likely going to be many more growth opportunities created in this
sector as these companies' top lines grow through additional mergers and
acquisitions, improved services, and word of mouth all leading to increased
client accounts and therefore trade volumes.
Visit the Bellwether Report at www.bellwetherreport.com to learn about the
latest service to hit this sector helping to bridge the gap between
discount and full service brokers. The Bellwether Report will be profiling
this company as it emerges onto the market in the coming days.
Bellwether Report and its affiliates have not been compensated by the
above-mentioned companies.
Distributed by Market Wire
Copyright © 2009, MarketWire
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Daily NewsTags: ,FinancialServices:InvestmentOpinion, ,NASDAQ01,NYSE0001,NASDAQ01,NASDAQ01,NYSE0001,NYSE0001,,TORONTO
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