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Q2 2006 - Online Discount Brokerage Review The Q2 2006 Online Discount Brokerage Review provides some interesting results and conclusions due to the exhaustiveness of the level of questioning to analyse the true value of firm's features and functionality. The most interesting revelation is that some of the traditional bank-owned powerhouses in the online brokerage have given way to the some of the independent firms who mainly serve the credit union clientele. Several of the bank owned firms have been focused on re-designing their strategies for the trader segment but appear to have ignored their investor segment while doing so. Banking integration continues to be a desired feature for many investors and traders; however, bill payment, electronic funds transfers and wire features now make that original inconvenience a thing of the past. Cost and free functionality appear to be in the favour of the non bank owned firms. Credential Direct finishes in the top spot in the Q2 2006 Overall and Investor categories while TD Waterhouse takes the top spot in the Trader category. The analysis reviewed 18 firms and ranked 15 firms in the Overall and Investor profiles and 16 in the Trader profile. RESULTS: 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 5 provinces
- Ability to establish a registered account
- Minimum account opening balance requirement no greater than $10,000 CDN
| The Categories: | | 1. | Getting Started
The Getting Started category analyses a firm's public domain including its account documentation and application process. | | 2. | Design and Help Features
The The Design and Help Features category analyses site's ease of use through customization and intergration features and explores the intuitiveness of the site's ability to help a user through all the processes. | | 3. | Customer Interaction
The Customer Interaction category analyses the various channels and/or formats by which the firm and client are able to communicate. | | 4. | Market Intelligence
The Market Intelligence category analyses the firm's technical robustness including stock/option/mutual fund quotes; the filtering of watchlists; and the performing of fundamental and technical analysis. | | 5. | Trading
The Trading category analyses the robustness of the firm's trading technology - ranging from order execution to account management. | | 6. | Tools and Education
The Tools and Education category analyses the the firm's screening, alerting and selection tools as well as the firm's ability to aid or educate the user through proprietary and/or third party tools. | | 7. | Commission and Fees
The Commissions and Fees category analyses both the firm's commission structure specific to equity, options, mutual funds, and exchange traded funds as well as it's account fee structure. |
Next Analysis: Q4 2006
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