Spring 2011 - Online Discount Brokerage Review
TD Waterhouse remains the top firm for online discount brokerage services in Canada for the fourth straight analysis. BMO InvestorLine moved into second place, narrowly ahead of RBC Direct Investing and the two credit union focused firms, Credential Direct and Qtrade, who finished in a three-way tie for third place. Disnat was the biggest mover, moving up 5 places into the 8th spot while CIBC Investor's Edge continues to be the lowest ranked 'big-bank' offering. Surviscor focused on the Investor and looked at three types of Investor; the Passive, the Serious and the Active.
The ninth edition of the review incorporates a change into the actual scoring figure as each firm was given a percentage score based on the availability of its offerings as compared to the number one peers in each category. The results produced, in most cases, higher scores for the firms as the industry continues to expand its functionality. The newest features of note are: mobile brokerage applications (Disnat, Qtrade and TD Waterhouse), account performance and goal setting tools at RBC Direct Investing, introduction of and expanded ETF information and centres at several firms and additional improvements of video education and model portfolio advice and re-balancing features. Price, for the first time in 6 reviews, has taken a lesser 'differentiation' role with most firms using aggressive pricing, both at the trade-activity and asset-level criteria. In many cases, the ability, or inability, of the firms to respond to Surviscor's 'anonymous' emails via the Customer Email Responsiveness (CER) program proves to be one the major deciding factors for the firm's ranking. The 2010 CER Year-In-Review winner for brokerage was TD Waterhouse.
RESULTS:
The scorCard is the most comprehensive online brokerage analysis in North America with over 2600 criteria questions, 7 main categories and 31 sub-categories. The scorCard identifies the Investor needs with easy to understand categories. In the near future, Investors will have the ability to use the Surviscor data along with their own criteria to determine which firm best serves their needs.
Each company's results and general information is available to users by linking on the company name in any of the result pages. Particpating firms allow visitors to view more information, including video presentations and a "what's new" section. The overview page also provides visitors the ability to link to various key area of the company's site.
CRITERIA/CATEGORIES
The Criteria:
Surviscor reviews all Canadian discount brokerage firms including bank-owned and independent firms. Traditional day trading firms are included providing they meet the minimum requirements for inclusion. The Firms are evaluated for the online features and functionality they posses.
The minimum requirements are:
- Transactional capabilities in Canadian and US markets
- Physical location in Canada with minimum registration requirement of 2 provinces
- Ability to establish a registered account
- Minimum account opening balance requirement no greater than $10,000 CDN
| The Main Categories: |
| 1. | Getting Started
The Getting Started category explores the features and functionality available on the public site. The primary areas of analysis are the application process and the email responsiveness results (CER) with both customers and non-customers. The Customer Email Responsiveness (CER) data is available on this site under the Services tab or http://surviscor.com/Services/CER/Default.aspx.
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| 2. | Website Usability
The Website Usability category explores the general online experience of the user and the ability of the firm to provide an easy to use site. The primary areas of analysis are policies, customization and integration.
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| 3. | Account Services
The Account Services category explores the various customer touch points and online servcies. The primary areas of analysis are the available e-services and the access of account information details.
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| 4. | Market Intelligence
The Market Intelligence category focuses on the informational aspect of all market intelligence available to users.
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| 5. | Website Transactions
The Website Transactions category focuses on the online order screens and the feature and experience available to the customer. The primary area of analysis is the equity order process.
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| 6. | Online Resources
The Online Resources category focuses on the level of investment and planning tools available to the online user and analyzes the level of supporting education content and features.
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| 7. | Cost of Services
The Cost of Services category focuses on the cost of doing business with the firm by establishing a basket of transactions. The basket is established using three Investor profiles; Passive, Serious and Active, and reviews each at three different asset levels. All firms are analyzed using identical transactions.
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Next Analysis: Investor: Fall 2011 and Trader TBA