10% of ASX trades now made over the internet.

Online brokers have estimated that they now carry 10% of all market trades on the Australian Stock Exchange (ASX). Based upon previous estimates this represents an increase of approximately 3% within five months. Given the Telstra 2 float and the planned float of 40 companies on the ASX before year’s end we can expect this trend to continue if not accelerate.

The ASX claims that in dollar terms this represents approximately 1.5% of the market, confirming the view that online investors are eager to test this new medium with trades that typically average less than $10,000. Smaller value trades also enable the online investor to familiarise themselves with the online trading process, trading tools and research services without exposing a significant portion of their portfolio.

Estimates from the United States currently put internet trades at 30% of all market trades. Given Australia’s adoption rate for new technology and broadening base of share ownership, the growth outlook for online brokers appears bright indeed.