Jill Broadway

1

• Jill Broadway
• Julie Hutchison
• Lane Matthews
• Chris Merchant

2
Introduction

• What is on-line trading?

A way of trading stocks through the Internet
3
Presentation Overview

• Julie Hutchison
• History of trading on-line
• Features and Services

4
Presentation Overview

• Jill Broadway
• Gomez Rating Service
• Criteria
• On-line Trading Brokerages

5
Presentation Overview

• Chris Merchant
• Analysis of Major Brokerages

6
How It All Began

• In 1995 the first Initial Public Offering was
  made over the Internet
• Andrew Klein of Spring Street Brewing Co.
• The Securities and Exchange Commission embraces
  the idea of on-line trading

7
How It All Began

• In 1992, ETRADE was launched
• By 1996, 40 of their business is on-line
• In 1996, eSchwab.com began, later changing their
  name to Schwab.com

8
Statistics

• 1996 1.5 million investors were trading with
  on-line accounts
• Forresters estimates by 2003 there will be 20.4
  million on-line accounts
• Today there is about 115 on-line brokerages
• 1998 SEC reports an average of 120 e-mail
  messages per day concerning fraud

9
Features

• Free unlimited quotes
• Ability to trade stocks, bonds, mutual funds,
  futures, and options
• Access to research and historical information
• Electronic funds transfer
• 24/7 customer support

10
Gomez Rating Service

• Provides ranking of various electronic brokerage
  services
• Based on five criteria
• Ease of Use
• Customer Confidence
• On-site Resources
• Relationship Services
• Overall Costs

11
Gomez Rating Service

• www.gomez.com

12
Major On-line Brokerages
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Charles Schwab Co.

• Variety of investment choices
• Large minimum to open account
• Three ways to access account

14
Datek Online Brokerage

• Speed is the key
• Portfolio updates are executed in real time
• Before/After hours trading available
• No penny stocks or bonds

15
ETrade Securities, Inc.

• Variety of ways to access account
• 24-hour online help system
• Offers investment tips (ETrade Knowledge
  center)

16
Ameritrade, Inc.

• Offers low prices and customer-based services
• Tailored market reports
• Access account five different ways

17
DLJ Direct Inc.

• No minimum required to open account
• Begin trading immediately
• Special features offered

18
TD Waterhouse

• Offers brokerage, banking, and mutual funds
  services
• Brokerage Accounts
• Regular
• Retirement
• Margin
• Customer service available through e-mail and
  phone