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Unformatted text preview: hreat to
America’s financial lives,” and reassured Merrill’s thousands of
brokers that his house would never go down that path.
Now Merrill and all the other heavy artillery—the big old
banks, securities houses, and investment firms—are rumbling
to the front as fast as they can. Merrill is offering its clients online dealing at a price of $29.95 a trade, compared with the
$100–$400 that clients of full-service brokers have been accustomed to forking out. Merrill’s online clients have access to
some of its research, and can watch videos of analysts’ daily
briefings . . . This competition is changing the online brokers. The market leaders, such as Schwab and E*Trade, are now under
pressure from both ends of the market. Last year, despite enjoying a 48 percent rise in customer assets and a 44 percent increase in revenue, Schwab’s share of the online market by
assets fell from 28 percent to 23 percent. Further downmarket,
firms are vying for the business of the most active investors,
the famed day-traders. In response, Schwab this year acquired CyBerCorp, a day-trading broker. It also cut its standard
commission in half, to $14.95 a go, for investors who trade
more than 60 times a quarter. Further upmar...
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This document was uploaded on 03/09/2014 for the course ACC 301 at HELP University.
- Spring '09