Competition in the Online Brokerage Market

The online brokerage services market has expanded significantly in the last 10 years and continues to evolve rapidly. At its peak in early 2000, online retail traders accounted for nearly one-third of the trading volume on the NYSE and NASDAQ, a figure which float around 10% for last couple of years. The online brokerage industry has been in the news lately, as the industry moves towards consolidation; driven primarily by two factors - excess capacity and the very low level of variable costs associated with processing a trade.

While the online brokerage industry is expected to face extreme competition in coming years, both from outside and within, it is not an industry that is going away. It is clear that trading services, which in the past were the main function of online brokers, are fast becoming a commodity. The consolidation in the industry is the direct recognition of as to how important it will be for brokerage firms to adopt a diversified business model. Clients will gladly reward those firms that would be able to help them successfully manage and grow their net worth.

Synergyst's "Competition in the Online Brokerage Market" report focuses on the competition among the leading online brokers - Fidelity, E*Trade, TD Ameritrade, Charles Schwab and Scottrade. The report provides insight into the current online brokerage market and analyses the key trends and market competition of the leading players. Profiles of these companies are also presented along with the review of their services and competitive edge.