Shreve, K.(2013, 12 2). Best online brokers: which fits your investing style?. Investors Business Daily. A diverse number of online stock brokers continue to innovate to gather new potential customers and maintain the existing users. It also mentions that regular innovations in online brokerage have helped brokers attract more customers and retain their existing users. Customers assess and evaluate their broker. The assessment will be a vital information to the potential investors who would be looking for new broker and give the perception on how the firms was being conveyed by their current clients. Investors can consider the capability of each top performing firm to find out whether it would suit their needs or it could pave way into investment of stocks and other securities. Interactive Brokers such as TradeKing, Vanguard Brokerage, Scottrade and Merrill Edge ranked highest on some categories, mainly: low cost, as the primary concern and broker responsiveness. Salomon Sredni, CEO of TradeStation emphasized that customers wanted a turnkey solution, and it was the best way to monetize the platform they had. When they first started out, a lot of competitors were already there and it was hard to establish a new platform since they are just new in the field. TradeStation scored high in seven categories, including trade reliability, equity trading tools, research tools and educational resources . Subramaniam pointed out that customers want value and access when they need it. This was evidenced by the recent data which showed mobile trades at Fidelity rose 46% from a year ago (Subramaniam, as cited in Shreve, 2013).
Huang, N., Pitsker, K., Tan, A. (2012, 11). The Best of the online brokers (cover story). Kiplinger’s Personal Finance. 66(11), 38-41. Huang’s, Pitsker’s, & Tan’s (2012) article presents the following: an evaluation and ranking of online discount
stock brokerage companies in the U.S. as of
2012, conducted by the publication. It discusses the evaluation criteria used, which include the level of fees and other charges, the scope of information and research available to
users,
and quality of customer service via phone, e-mail, and online. (pp. 38-41) Huang, Pitsker, & Tan (2012) found that fees and commissions, range of investment options, research and tools accessible to client, and banking services are the six broad areas to be looked into each firm. It has been proved that the firm was really concentrating on the improvement of their customer service. According to Huang, Pitsker, & Tan (2012), “it helps to be tied to an actual bank, but it's not required.” (pp. 38-41)
Rahim, A. (2013). Problems and prospects of online share trading practices in India. International Journal of Journal of Marketing, Financial Services & Management Research, 2. Rahim’s (2012) study stated the following: The democracy of online trading is the key factor why the retail investors prefer to transact over the internet to their broker. The use of online brokerage services automates the of buying and
process
selling and hence allows a reduction of commission charges. Also the
commodity being traded is intangible; the ownership of stocks and shares can be recorded electronically so that there
is no requirement for physical delivery. It is inferred
that the major problem faced by online share traders is inadequate availability of technology. Second and third problems are poor communication network, and more chances of fraud. Risk of system failure and lack of transparency are the fourth and fifth problems and the least problem is lack of professional management and lack of sufficient information. With a view to increasing the effectiveness of online share trading, particular attention should be paid to the long – term strategy. The following suggestions can be a guided in this regard.
Since
the online share trading business depends upon customer service, technological knowhow, new innovations, and efficient management etc., the following measures in these areas have to be taken on priority basis to achieve success in online share trading business. Inadequate
technology is the major problem faced by online share traders. These
engines will obviate the need for a broker to develop his own engine and thus, result in capital investment saving. However, a user can log on to these engines, use the website of the broker and trade electronically. These developments are, therefore, expected to give a strong fillip to the electronic brokerage industry in India. Application of superior technology to clients will be a key determinant of success. New trading mechanism can be formed to allow the trading of stocks in the world’s global companies. Lack of professional management is the second major problem faced by the
investors. The online share trading industries must develop new
strategies for what the customers pursue. There is an urgent need for firms to place a new emphasis on customer relationship that combines selling with personal financial consultations to meet client’s specific needs.
Rossignoli, C., Zardini, A., Cantoni, F. (2013, 8). When Customer Behaviours Change, Should Banks' Approaches to Online Trading Stay the Same?. Journal of Internet Banking & Commerce. 18(2), 1-16. This study implied that banks can achieve a strategic management in using online trading services, outsourcing and new managerial practices recognized with the lack of specific competencies by pursuing an appropriate sourcing of online services to decrease expenses and obtain competitive advantages. According to Rossignoli, Zardini, & Cantoni (2013) : this article provides an in-depth analysis of online trading services offered in the Italian banking system. It represents a response to understand which are the e-trading services offered by the Italian banks. Hence, its purpose is to analyse the state of art of the Italian banks. Developing adequate information systems to support customers' changing behaviour gives Italian banks an important opportunity to retain customers and develop their loyalty. In particular, multichannel strategies can help banks combine in- and outsourcing solutions, lower their costs, and substantially increase business process excellence and innovation through collaborative partnerships. Online stock brokers tied with the banks which offers are said to be an edge because it reduces costs, raises reliability and guarantees credibility.
Wang, Y. (2013, 8). Does online trading affect investors’ trading intention?. International Journal of Business & Finance Research. 8(5), 71-79. The main intention of this article is to know the connection and probable results of online trading, the illusion of knowledge and control, information processing cost, trading intention, and expected performance. Investors’ trading goals may be further enhanced with the following factors: low cost, execution speed, usefulness and ease of use. Online platforms nowadays are important vehicles in presenting background knowledge associated with the updated stocks relevant information. With the fast paced technology today, online investors are expecting more advanced platforms that would be easily accessible and would be a greater help in their decision making. According to Wang (2013), investors should also strengthen their professional financial knowledge as best as they can, because doing so can enhance their analytical ability to find the correct online information, decrease the illusion of knowledge and information processing cost, reduce their decision errors in the decision making process and helps improve their actual investment performance.
