The broking battle – traditional vs online
The entrance of online brokers offering trading fees as low as one tenth of the fees of full service brokers, has forced traditional brokers to rethink their business and customer relationship strategy. According to a recent study by IDC, 15 per cent of current Australian daily trades are made online and is expected to jump by 30 per cent by 2002. As a result, firms such as Johnson Taylor Potter believe their advisory service is what sets them apart from online brokers and are committed to providing their clients with individual advice and service. Peter Wenzel, chairman and chief executive at JTP, believes that many investors end up coming back for advice after experimenting with online trading.
‘Fighting off the online trading challenge’, The Australian Financial Review, 16/10/00, p 14.