Phoenix Marketing International study shows an increase in share of online traders planning to investigate brokerage firms, establish a new relationship, open an additional account, or terminate a relationship
RHINEBECK, N.Y., Aug. 25, 2009 — Phoenix Marketing International, one of the fastest-growing research companies in the U.S., announced today findings from its quarterly study among online traders age 21+ reporting investable assets of at least $50k and who typically place 4 to 9 trades each month (active investors) or 10+ monthly trades (active traders).
Phoenix reports that 44% of traders are "in-market," that is over the next three months they plan to complete one or more account activities with revenue implications for brokerage firms. "Our research shows that online traders maintained the status quo since late last year as the share indicating they were in-market dropped by 30% between quarters three and four; this was especially pronounced among active investors," stated Marc Grozalsky, Product Manager for this study. "The share of online traders who plan a change with their brokerage relationships has returned to levels reported prior to the economic meltdown. As a leading indicator of investor behavior, we anticipate a resurgence of account activity in the near-term attributed to this momentum shift," added Grozalsky.
The Phoenix study, which was conducted this past June/July, shows that Charles Schwab, E*Trade, Fidelity, Scottrade, and TD Ameritrade command the most favorable overall consideration among firms well-known to online traders. They also consider such lesser-known brands as AB Watley, FOLIOfn, INGDirect/ShareBuilder, Interactive Brokers Group, optionsXpress, Terra Nova, thinkorswim, TradeStation, and Wall Street Electronica.
The five category leaders were also evaluated on characteristics online traders report as most important for a brokerage firm to demonstrate. "Our latest study shows that non-customers of these brands gave Schwab the edge for being fair and ethical in its business, and as a brand that cares about its customers. Schwab, followed closely by E*Trade and Scottrade, leads with having earned investor trust to execute trades quickly and accurately," reported Grozalsky, "while E*Trade and Scottrade are both perceived as offering good value for the money, having fair and simple pricing, and charging lower than expected commissions."
The Phoenix study was conducted among 1,500 traders and is representative of investors grouped by online trading volume. Also reported are detailed evaluations of 24 print, 28 TV, and 12 digital advertisements for brands that include: ADM Investor Services, Charles Schwab, Citi, CMC Markets, Deutsche Bank, Electronic Settlement Network, E*Trade, Fidelity, Forex Capital Markets, FX Solutions, GAIN Capital Markets, Genesis Securities, Global Forex Trading, Interactive Brokers Group, MarketClub, OptionsHouse, Royal Bank, Scottrade, TD Ameritrade, Tradernomics, and TradeStation.
The most effective print ad was for E*Trade, while TD Ameritrade had the most highly regarded TV ad. "Most successful ads evaluated by online traders enhance brand equity and share common strengths that have been continuously observed by Phoenix for over five years," cited Grozalsky.
Phoenix Contact:
Marc Grozalsky
508-647-0151
Email
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