The Jungle Law -- Revised Version From Brokers
June 29 2010 - 7:39AM
Marketwired
www.rothmanresearch.com - There is nothing new about Wall Street
being a jungle for many investors and for many analysts where the
survival of the fittest is very often spiced up by a laissez-faire
attitude. Well there are the elites of the group which like a pride
of lions have been comfortably expanding their empire in their
respective industries. In recent months, one industry in particular
has been experiencing hardnosed hostilities and has been using more
of the hyenas' battle tactics to capture new games in a ruthlessly
competitive arena. The investment brokerage in the U.S. is
currently in a state of war as players in this space battle each
other in an approach quite similar to the retail industry. From
discounted commissions on trade going as low as $2, depending on
the size of the client's account, to new account super deals, the
brokerage industry is cutting no corners.
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Charles Schwab Corp. (NYSE: SCHW), the
instigator of the discount frenzy, maybe did not account that
cutting its online trading commissions would yank rivals which
offer comparative online platform trading in this fancy-fair. A few
decades ago, traders were being charged $70 to $200 a trade over
the phone, but then came the internet and with it the online
trading platforms like E*Trade Securities Inc. which later become
E*TRADE Financial Corporation (NASDAQ:
ETFCD). Whilst the internet changed traditional brokerage, it also
created a whole new dimension for traders. The recent conflicts
will potentially bring more changes to the industry which can see
its landscape altered through consolidation.
*Free downloadable research reports on Charles
Schwab Corp. and E*TRADE Financial
Corporation are available by signing up now at
http://www.rothmanresearch.com/article/schw/23634/Jun-29-2010.html or
http://www.rothmanresearch.com/article/etfcd/23635/Jun-29-2010.html
With a number of large players already offering discounted
commissions and other advantages at ETF levels, some players are
still lagging behind and could well be targets of a wave of M&A
that is rumored to loom over the industry.
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