Ref:Toronto Dominion Bank (TD)/Waterhouse Securities-IPO
Ravi:
Since we both own a bit of TD I thought I bring this to your attention,interesting stuff wouldn't you say. Now another couple of weeks we should know what TD will do about the Waterhouse IPO.
I think the online brokerage segment would have done quite well in the last couple of days if it wasn't for the damn e*Trade's screw up.
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Online Brokerages Double Business in 1998
February 4, 1999
By the InternetNews.com Staff Finance News Archives
Internet brokers continued to grow at a frenetic pace in 1998 and managed to double their business during the year, according to a new report issued Thursday.
According to Stephen C. Franco, senior research analyst of electronic commerce at Piper Jaffray, online brokers now collectively manage $420 billion in assets. That's due in large part to the fact that the industry's increasing number of competitors added 3.6 million new accounts during the year for a total of 7.3 million. Since many investors have multiple accounts, Franco estimates the total number of online investors to be about 4.4 million.
Of the top 10 online brokers, all reported growth of more than 13 percent, with Waterhouse Securities leading the pack. Waterhouse grew its customer base 59 percent to end at 529,000 accounts. Other strong gainers were Datek, which grew 58 percent to 152,000 subscribers and Schwab, posting a 21 percent increase to end at 2.2 million accounts.
The top 10 brokers and the number of their customers were: Schwab, 2.2 million; Fidelity, 2 million; E*Trade, 676,000; Waterhouse, 529,000; DLJdirect, 529,000; Ameritrade, 354,000; Datek, 152,000; Discover, 112,000; Suretrade, 109,000 and National Discount Brokers, 85,000.
As a group, online brokerages averaged 336,700 trades a day in the fourth quarter, up 32 percent from the third quarter and 125 percent from the previous year. An estimated 27 percent of individual trades were executed online and the cost to acquire customers dropped from $205 in the third quarter to $196. For 1998, about 37 percent of individual trades were conducted online.
"Without a doubt, in 1998 individual investors discovered and realized the power of trading online. Looking ahead, the successful online brokerages will attract laggard accounts and assets by empowering investing online as we look forward to new advances in online asset management beyond the resurgent equity trade," Franco said.
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Report: Online Stock Trades Rise 34% to 340,000 Daily
January 29, 1999
(By Beth Cox
InternetNews.com Correspondent Finance News Archives )
Online trading companies logged an average of 340,000 stock and mutual fund trades a day in the fourth quarter of 1998, up 34 percent from the second quarter, according to published reports.
Toronto-Dominion Bank's Waterhouse Investor Services had the biggest increase in market share for the second consecutive quarter, according to a report from Credit Suisse First Boston Corp.
Waterhouse passed E*Trade Group Inc. to move into second place, adding 1.9 percentage points to reach 12.4 percent of average daily trades, Bill Burnham, an electronic commerce analyst at Credit Suisse and the report's author, told Bloomberg News.
Charles Schwab Corp., the biggest online brokerage, lost 2.9 percentage points in the quarter, finishing with a 27.4 percent share based on 93,000 daily trades, Burnham was quoted as saying.
E*Trade gained share, adding 0.9 percentage points to reach 11.7 percent. Datek Online Brokerage Services Inc. added 1.6 percentage points to reach a 10 percent share, passing Fidelity Investments to move into the No. 4 spot.
The continued growth in U.S. online trading volume, from a 253,000 daily average in the third quarter, came as investors snapped up Internet stocks, with the Inter@ctive Week index of 50 Internet stocks rising 71 percent during the three months. Burnham's report is said to be a benchmark for the online trading industry,.
"The close correlation between online trading growth and Internet stock volume growth is really not surprising given that online traders are, by definition, Internet users and therefore much more likely to be aware of and interested in Internet stocks," Burnham said. Online trades accounted for almost one in seven U.S. stock trades in the fourth quarter.
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