Q1-2012 - Online Discount Brokerage Review
Qtrade Investor is the new leader in online discount brokerage services in Canada as established in the 10th edition of the Surviscor Online Discount Brokerage scorCard. TD Waterhouse, the winner of the past four reviews, fell to second place. BMO InvestorLine dropped into third place while Credential Direct maintained its fourth place finish. RBC Direct Investing rounded out the top five. Virtual Brokers had the biggest percentage result move and is a firm to watch. The Surviscor Online Discount Brokerage review now exclusively focuses on the Investor segment and reviews three types of Investor; the Passive, the Serious and the Active.
The firms' percentage score is based on the availability of its offerings as compared to the number one peers in each category. The main criteria expansion in the review more in-depth look at mobile brokerage applications, social media and ETF information and services. Price continues to take a lesser 'differentiation' role with most firms using aggressive pricing, both at the trade activity and assets under administration levels.
RESULTS:
The category winners are: TD Waterhouse (Website Usability, Market Intelligence and Online Resources); BMO InvestorLine (Getting Started and Website Transactions); RBC Direct Investing (Account Services) and Virtual Brokers (Cost of Services).
The discount brokerage scorCard continues to expand and is the most comprehensive online brokerage analysis in North America. The scorCard reviews close to 2900 features and functionality criteria which make up 32 sub-categories and 7 main categories. . The scorCard identifies the Investor needs with easy to understand categories.
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.
|
| 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.
|
| 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.
|
| 4. | Market Intelligence
The Market Intelligence category focuses on the informational aspect of all market intelligence available to users.
|
| 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.
|
| 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.
|
| 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.
|
Next Analysis: Q3-2012 Investor - Summer 2012