Active Trader Market: Changing Currents, Rising Tide
Report Summary
Active Trader Market: Changing Currents, Rising Tide
A new population of active traders exhibits shifting technology and asset-class preferences.
Boston, February 28, 2012 – A new report from Aite Group identifies the shifting characteristics of the active retail-trader market, including the group’s demographics and technology and asset-class preferences. The report is based primarily on a December 2011 Aite Group survey of 1,014 U.S. investor households. It describes the competitive landscape in the active trader market and profiles various trading platforms.
The United States has seen broad acceptance of online trading, including high levels of trade frequency and a substantial uptake in asset classes like exchange-traded funds, options, and foreign exchange. Changes in traders’ asset-class preferences have followed a major shift in the makeup of the trading population, which is trending younger and increasingly female. Online brokerage firms are also gaining investor funds from traditional brokerage firms. While some established securities firms and large retail banks are well-prepared to transition into the new trading environment, most are not and will have to ramp up quickly.
“Major change is afoot in the active trader market,” says Javier Paz, senior analyst with Aite Group and author of this report, “The exodus of funds from large retail securities firms and private banks appears to be heading toward online broker firms, which are able to provide traders with specific online tools, access to new asset classes, and additional convenience. An even more profound change is taking place in terms of who is trading and what is being traded—a new reality that all wealth management firms will need to address in order to remain relevant.”
The report profiles trading platforms available from Bank of America’s Merrill Edge, Charles Schwab & Co. Inc., E-Trade, Fidelity Investments, Interactive Data Corporation, ITB Securities, Riflexo, Saxo Bank, TradeKing, TradeStation, and Zecco.
This 74-page Impact Report contains 59 figures and five tables. Clients of Aite Group’s Wealth Management service can download the report.