In a new report, What Really Matters to Retail Consumers of Online Brokerage?, Aite Group reveals the results of a study of U.S retail consumers who possess investing accounts with access to online trading functionality. The report outlines the demographics, perceptions and behavior of online brokerage users, and provides insight into what the majority want from their service.
Findings show that, compared to the general population, online brokerage users tend to be young, better educated, in a higher income bracket, and more likely to own their own homes. They are also price-conscious. Nearly 20% of users are considering changing brokers within the next six months, and price is a leading factor. Further, online brokerage tools play a significant factor in retaining existing clients.
According to Adam HonorÃ©, senior analyst at Aite Group and author of the report, "Though the largest generation in American history is nearing the apex of building their retirement nest eggs, younger and more tech savvy investors are the most likely to have online brokerage accounts. This group has not yet acquired the assets to be considered Mass Affluent or High Net Worth, yet the many full-service firms and discount brokerages have geared their business models toward that group. To appeal to the younger investor, brokerages must price competitively and be as concerned with retaining business as attracting it."