PBL may exit from Schwab
PBL is said to be looking for a buyer of its 50% share in Charles Schwab Australia after incurring losses on its online trading venture. In light of the OneTel experience it’s no wonder the company is looking to quit Schwab which has sofar failed to make a significant dent in the local market.
Although Schwab can claim to be the largest online broker worldwide, the latecomer to the Australian market was always going to do it tough. The banks have dominated the sector, Comsec in particular, with Etrade, who was second on the scene behind Comsec. The huge marketing spend by Etrade to buy customers and its disappointing reported results thusfar show the difficulty experienced by all.