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Full Service eBrokerage: Luring the Mainstream Investor Online

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2000/03/01

Abstract

Cambridge, MA, USA, February 1, 2000Full Service e-Brokerage: Luring the Mainstream Investor Online Report published by Celent CommunicationsIn a new report titled "Full Service e-Brokerage: Luring the Mainstream Investor Online", Celent Communications explores the next phase of Internet-based trading -- Full Service e-Brokerage. This report provides an in-depth analysis of the online brokerage market, predicting that full service brokers will dominate over the current leaders in the online brokerage market, including firms such as Charles Schwab and E*Trade.Despite its phenomenal growth, the online brokerage industry has not yet attracted mainstream investors, who represent 85 percent of the retail investment community.

These investors prefer a combination of brokerage services, including not only online trading, but also financial advice and guidance.Anticipating the entrance of these mainstream investors -- who will make up almost 70 percent of online investors by 2003 -- full service firms, led by Merrill Lynch, have launched various online trading services, setting the stage for a new blend of online trade execution combined with financial advice.As Full Service e-Brokerage offerings gather momentum, those firms with strong brand names, experienced financial advisors, and compelling online offerings, as well as a strong brick-and-mortar presence will excel."

Within the next three years, leadership of the online brokerage industry will shift to full service firms who complement their advisory services with a compelling suite of online offerings," according to Sang Lee, one of the authors of the report. Lee goes onto add that "by 2003, full service brokerage firms will occupy almost 60 percent of the online market."According to Octavio Marenzi, managing director at Celent, "We have entered a new phase in online brokerage, where the firms which have dominated the market to date will find themselves struggling to hold on to market share."A Table of Contents is available online.Members of Celent Communication's Retail Securities & Investments research service can download this report electronically by clicking on the icon to the right.