| 2005 Canadian Online Discount Brokerage
Review |
|
| The Canadian Online Discount Brokerage Review was
conducted in December 2004. The report was released in January 2005. |
|
| The report demonstrated that the online brokerage
industry continues to demand better products and services. The increased level
of trading is allowing firms to re-evaluate their current offerings and plan
for upcoming changes and/or enhancements in the short to medium feature.
Several firms are planning major overhauls in 2005. There has been a major
shift in the profile segmentation of the online brokerage industry. The
investor profile could now be described as investors who are hyperactive day
traders, who trade for a living, the more traditional active/serious trader and
a general online investor category. |
|
| TJL Interactive determined that BMO
InvestorLine, CIBC Investor’s Edge and Credential Direct were the top online
offerings in Canada. The review analysed eleven firms from a
variety of categories. In each case, TJL Interactive performed the analysis by
developing features and functionality binary questions for the various
categories. |
|
| The report was produced and included the following
information based upon the findings: |
|
-
Executive Summary, The Process and Top Findings
-
2004 Quartile Rankings and Company Overviews
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Category Overviews and Best Practice Information
-
Getting Started
-
Services Offered and Customer Interaction
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Design Features and Performance
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Account Information and Order/Trading Process
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Market Information (Quotes, News, Research)
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Selection and Planning Tools
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Education
-
Help Features
-
Pricing
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Industry Next Steps including Recommendations
|
|
| The analysis also identifies best practice
information, within and outside of the online discount brokerage space, where
opportunities appear to exist. The analysis is meant to serve as a development
template for Company X and identify opportunities in the features and
functionality areas of their online discount brokerage offering. |
|
|
| Overall Results |
|
1st Quartile Firms:
-
Credential Direct
-
BMO InvestorLine
-
CIBC Investor's Edge
|
|
2nd Quartile Firms:
-
TD Waterhouse
-
E*Trade Canada
-
ScotiaMcLeod Direct Investing
|
|
3rd Quartile Firms:
-
Qtrade Investor
-
Desjardins Online Brokerage Disnat
-
RBC Direct Investing
|
|
4th Quartile Firms:
-
National Bank Direct Brokerage
-
HSBC InvestDirect Canada
|
|
|
BMO |
CIBC |
Cred. |
E* |
Scotia |
TDW |
Disnat |
QTrade |
RBC |
HSBC |
NB |
| OVERALL |
Q1 |
Q1 |
Q1 |
Q2 |
Q2 |
Q2 |
Q3 |
Q3 |
Q3 |
Q4 |
Q4 |
|
| Getting Started |
Q1 |
Q1 |
Q1 |
Q3 |
Q1 |
Q2 |
Q4 |
Q2 |
Q3 |
Q4 |
Q4 |
| Services & Customer |
Q1 |
Q2 |
Q4 |
Q2 |
Q2 |
Q1 |
Q1 |
Q4 |
Q3 |
Q3 |
Q3 |
| Design & Performance |
Q2 |
Q2 |
Q1 |
Q4 |
Q1 |
Q1 |
Q4 |
Q2 |
Q2 |
Q2 |
Q4 |
| Account Info & Trading |
Q2 |
Q1 |
Q1 |
Q2 |
Q2 |
Q3 |
Q3 |
Q3 |
Q4 |
Q1 |
Q4 |
| Market & Research |
Q3 |
Q1 |
Q1 |
Q2 |
Q1 |
Q2 |
Q1 |
Q2 |
Q4 |
Q3 |
Q4 |
| Selection & Planning |
Q1 |
Q3 |
Q1 |
Q1 |
Q2 |
Q3 |
Q2 |
Q2 |
Q4 |
Q4 |
Q3 |
| Education |
Q2 |
Q1 |
Q1 |
Q3 |
Q1 |
Q2 |
Q4 |
Q2 |
Q3 |
Q3 |
Q3 |
| Help Features |
Q1 |
Q1 |
Q1 |
Q2 |
Q4 |
Q2 |
Q2 |
Q3 |
Q4 |
Q4 |
Q3 |
|
|
| Results are based on Quartile standings. Q1
represents 1st Quartile |
|
| 1st Quartile (Q1): Represents firms whose
offerings consistently outperform their competitors and are considered
premier offerings in their online vertical. These firms demonstrate leading
edge online functionality. |
|
| 2nd Quartile (Q2): Represents firms whose
offerings demonstrate better than average results in their online
vertical. These firms demonstrate some Q1 functionality; however, are missing
some key features. |
|
| 3rd Quartile (Q3): Represents firms whose
offerings demonstrate average results in their online vertical. These
firms may demonstrate some Q1 and Q2 functionality; however, are missing many
key features. |
|
| 4th Quartile (Q4): Represents firms whose
offerings demonstrate below average to non-existent results in their
online vertical. In general, these firms do not demonstrate any key
functionality and features. |