| 2005 Canadian Online Discount Brokerage Review |
|
| The Canadian Online Discount Brokerage Review was conducted in December 2004. The report was released in January 2005. |
|
| The report demonstrated that the online brokerage industry continues to demand better products and services. The increased level of trading is allowing firms to re-evaluate their current offerings and plan for upcoming changes and/or enhancements in the short to medium feature. Several firms are planning major overhauls in 2005. There has been a major shift in the profile segmentation of the online brokerage industry. The investor profile could now be described as investors who are hyperactive day traders, who trade for a living, the more traditional active/serious trader and a general online investor category. |
|
| TJL Interactive determined that BMO InvestorLine, CIBC Investor’s Edge and Credential Direct were the top online offerings in Canada. The review analysed eleven firms from a variety of categories. In each case, TJL Interactive performed the analysis by developing features and functionality binary questions for the various categories. |
|
| The report was produced and included the following information based upon the findings: |
|
- Executive Summary, The Process and Top Findings
- 2004 Quartile Rankings and Company Overviews
- Category Overviews and Best Practice Information
- Getting Started
- Services Offered and Customer Interaction
- Design Features and Performance
- Account Information and Order/Trading Process
- Market Information (Quotes, News, Research)
- Selection and Planning Tools
- Education
- Help Features
- Pricing
- Industry Next Steps including Recommendations
|
|
| The analysis also identifies best practice information, within and outside of the online discount brokerage space, where opportunities appear to exist. The analysis is meant to serve as a development template for Company X and identify opportunities in the features and functionality areas of their online discount brokerage offering. |
|
|
| Overall Results |
|
1st Quartile Firms:
- Credential Direct
- BMO InvestorLine
- CIBC Investor's Edge
|
|
2nd Quartile Firms:
- TD Waterhouse
- E*Trade Canada
- ScotiaMcLeod Direct Investing
|
|
3rd Quartile Firms:
- Qtrade Investor
- Desjardins Online Brokerage Disnat
- RBC Action Direct
|
|
4th Quartile Firms:
- National Bank Direct Brokerage
- HSBC InvestDirect Canada
|
|
|
BMO |
CIBC |
Cred. |
E* |
Scotia |
TDW |
Disnat |
QTrade |
RBC |
HSBC |
NB |
| OVERALL |
Q1 |
Q1 |
Q1 |
Q2 |
Q2 |
Q2 |
Q3 |
Q3 |
Q3 |
Q4 |
Q4 |
|
| Getting Started |
Q1 |
Q1 |
Q1 |
Q3 |
Q1 |
Q2 |
Q4 |
Q2 |
Q3 |
Q4 |
Q4 |
| Services & Customer |
Q1 |
Q2 |
Q4 |
Q2 |
Q2 |
Q1 |
Q1 |
Q4 |
Q3 |
Q3 |
Q3 |
| Design & Performance |
Q2 |
Q2 |
Q1 |
Q4 |
Q1 |
Q1 |
Q4 |
Q2 |
Q2 |
Q2 |
Q4 |
| Account Info & Trading |
Q2 |
Q1 |
Q1 |
Q2 |
Q2 |
Q3 |
Q3 |
Q3 |
Q4 |
Q1 |
Q4 |
| Market & Research |
Q3 |
Q1 |
Q1 |
Q2 |
Q1 |
Q2 |
Q1 |
Q2 |
Q4 |
Q3 |
Q4 |
| Selection & Planning |
Q1 |
Q3 |
Q1 |
Q1 |
Q2 |
Q3 |
Q2 |
Q2 |
Q4 |
Q4 |
Q3 |
| Education |
Q2 |
Q1 |
Q1 |
Q3 |
Q1 |
Q2 |
Q4 |
Q2 |
Q3 |
Q3 |
Q3 |
| Help Features |
Q1 |
Q1 |
Q1 |
Q2 |
Q4 |
Q2 |
Q2 |
Q3 |
Q4 |
Q4 |
Q3 |
|
|
| Results are based on Quartile standings. Q1 represents 1st Quartile |
|
| 1st Quartile (Q1): Represents firms whose offerings consistently outperform their competitors and are considered premier offerings in their online vertical. These firms demonstrate leading edge online functionality. |
|
| 2nd Quartile (Q2): Represents firms whose offerings demonstrate better than average results in their online vertical. These firms demonstrate some Q1 functionality; however, are missing some key features. |
|
| 3rd Quartile (Q3): Represents firms whose offerings demonstrate average results in their online vertical. These firms may demonstrate some Q1 and Q2 functionality; however, are missing many key features. |
|
| 4th Quartile (Q4): Represents firms whose offerings demonstrate below average to non-existent results in their online vertical. In general, these firms do not demonstrate any key functionality and features. |