Tuesday, June 23, 2009
Why Are Online Broker Accounts Growing?
Bear markets have often been times when investors swear off stocks. But this time around, online discount brokerages are reporting sizable jumps in clientele during one of the steepest sell-offs in decades. Scotiabank’s discount broker, for example, racked up 60% growth in accounts over the past year. Other major online brokerages were not far behind.
Some observers have speculated that this trend represents a shift to do-it-yourself investing. Disenchanted with the losses they were incurring, investors are “firing” their advisers and venturing out on their own. Or they are dumping mutual funds with their high fees for exchange-traded funds and stocks. But a survey of 65,000 investors earlier this year by J.D. Power & Associates (for its Full Service Investor study to be released June 24) found a different explanation...
Seeking Alpha: Why Are Online Broker Accounts Growing?
Some observers have speculated that this trend represents a shift to do-it-yourself investing. Disenchanted with the losses they were incurring, investors are “firing” their advisers and venturing out on their own. Or they are dumping mutual funds with their high fees for exchange-traded funds and stocks. But a survey of 65,000 investors earlier this year by J.D. Power & Associates (for its Full Service Investor study to be released June 24) found a different explanation...
Seeking Alpha: Why Are Online Broker Accounts Growing?
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