Results of TheStreet.com's Great Online Brokerage Survey just in:
thestreet.com
thestreet.com
Datek 20.49
Fidelity 18.83
Schwab 18.31
DLjdirect 18.27
Ameritrade 17.02
E*Trade 16.16
TD Waterhouse 14.63
And doesn't this sound familiar?
"Access problems during busy times basically cancel out any benefits," wrote a survey respondent. "If one of the online brokers would bite the bullet, build out their servers, charge a competitive rate and guarantee access, they would probably capture a majority of the market share. I know I would move."
But while sheer speed helped put Datek over the top among the most popular brokers, it stands tall only among relative Pygmies, as far as TSC readers are concerned. Its overall score -- 20.49 of a possible 30 (about a B, class) -- is a sign that the industry has a way to go to make these customers satisfied. From the more than 2,000 written comments that poured in along with 10,000 ballots, it's clear that investors are losing patience. They say they are tired of watching their brokers shovel millions into incessant TV ads while they stare at an hourglass on their computers or wither on hold until the next available rep answers the phone. In short, the customers want the online brokers to build the systems and customer-support operations that are needed to deliver all the services they promise.
Take the experience of James Nix, who works in commercial real estate in Dallas. On a recent morning, he said, he logged on to E*Trade (EGRP:Nasdaq - news - boards) with plans to sell 3Com (COMS:Nasdaq - news - boards) at the open. As he waited and fumed, he used the time to write to TheStreet.com: "My site will not let me enter the order, and I have now been on hold for a broker for an hour. I also wanted to change several stop [orders] but my site will not let me. Also, my account balance was off by $6,000 this morning. ... Oh, a customer-service rep just came on and said it would be another 30 minutes to an hour. ... This is my life savings, and I am helpless."
Nix wasn't asking for the moon, just for what an online broker is expected to do: enable you to trade online. (E*Trade did not respond.)
For what it's worth, Mr. Nix, you're in good company. Dreyfus is the only firm of the 17 that scored above 20, or "good," on reliability, and only four hit that mark in customer service. |
