Full Service eBrokerage: Luring the Mainstream Investor Online

March 1, 2000

Abstract

Cambridge, MA, USA, February 1, 2000

Full Service e-Brokerage: Luring the Mainstream Investor Online Report published by  Celent Communications

In 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.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

February 1, 2000

Full Service e-Brokerage: Luring the Mainstream Investor Online

Return to report Abstract

EXECUTIVE SUMMARY 3
  Introduction 3
  Industry Overview 3
  Full Service e-Brokerage 4
  Future Trends 4
INTRODUCTION 5
INDUSTRY OVERVIEW 8
  Market Projections 8
  Online Brokerage Segmentation 10
  Retail Investor Segmentation 13
FULL SERVICE E-BROKERAGE 18
FUTURE TRENDS 23

 

        

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