Internet broking operations apparently remain unprofitable for most of the more than two dozen firms involved, and if recent market weakness continues there could even be something of a shakeout within the industry. This might mean the curtailment of some services. But for the time being at least, it is investors who are winning. Long gone are the days when online brokers offered just cheap trades and, if you were lucky, a couple of how-to articles on the investment process plus an inhouse newsletter. Now a variety of research and analysis is available at many sites, ranging from concise one-pagers on leading companies to quite detailed reports on a company and its prospects, complete with forecasts and recommendations.
Some firms provide a financial news service.
You can also gain access to powerful charting and analysis tools, and there has been a considerable enhancement of the services on offer. Many firms allow trading in derivatives, and a growing number have a range of managed funds available, with greatly discounted entry fees. The latest trend is towards offering direct trading in US stocks and even in those on some other foreign markets. See the accompanying table for more detail on what each online broker offers, and check out the Your Broker Online web site for more comprehensive tables, as well as calculators and a selection of useful articles. As the internet itself continues to blossom and become more pervasive in our lives, there is every reason to expect online trading to continue to grow.