Cambridge, MA, USA,
August 30, 2000
Free Online Trading:
Too Good to be True?
Report Published by Celent
Competing mainly on the basis of
execution price is no longer a viable option for most online brokerage
firms. While retail investors still do look for affordable execution
prices, most are willing to pay a little extra for a brand name and
extensive content and research. The latest salvo in the commission war is
the emergence of completely free online trading. A handful of firms have
begun to offer low -- in fact, nonexistent -- execution pricing to attract
independent, Internet savvy retail investors. In a report, titled "Free
Trading -- Too Good to be True?" Celent Communications examines
the recent online brokerage phenomenon of commission-free trades. The
report provides detailed analysis of the four online brokerage firms
currently providing commission-free trades and identifies the possible
impact this may have on the overall industry.
 Members of Celent Communication's
Retail
Securities & Investments research service can
download this 20-page report electronically by
clicking on the icon to the right.
"Commission-free trading represents
good opportunities for those retail investors looking for the cheapest
possible execution price," noted Sang
Lee, an analyst at Celent's Trading group. "However, those
brokerage firms building their entire business model on the concept of
free trading without offering a robust suite of research/content and
reliable customer service will quickly find that there is no such thing as
a free lunch."
A Table of
Contents is available online.
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