Scottrade moved to the top of the rankings in an annual study of customer satisfaction with online brokerages, but satisfaction with the self-serve tools over all fell from last year.
The study from J.D. Power Associates found that the industry average for customer satisfaction, on an index of 1,000 points, was 752 this year, down from 768 last year. The index measures customer satisfaction of 10 “self directed” brokerages based on several factors, including customer interaction, trading charges and fees, and problem resolution. The findings are based on responses from 3,619 investors who make all of their decisions without help from an investment adviser. The study was fielded in January and February.
Charles Schwab was second and Vanguard third.
The overall decline in satisfaction stemmed broadly from “challenges with effective communication,” according to J.D. Power.
Unlike in the earlier days of online trading, many users of the services are not active traders; about 40 percent of those participating in the study said they had not made a trade in the past 12 months, said Craig Martin, director of the wealth management practice at J.D. Power. “They’re not day traders,” he said. Such users aren’t making hundreds of trades in a year, he said, but are using the accounts for information.
Some sites are offering more tools and information for investors who want to research stocks. But users may actually find it difficult to find the information they want if the Web site isn’t well organized and easy to navigate, he said. Brokerages also can do a better job of communicating with clients in the way they prefer, whether that is by e-mail, telephone or mail, the study found.
Users also seemed frustrated with the way the sites explained their fees. The percentage of investors who say they “completely” understand their brokerage’s fee structure dropped to 35 percent in 2013 from 39 percent in 2012. In addition to per-trade fees, the brokerages may also charge maintenance fees and inactivity fees.
Scottrade did well in communicating with customers, which helped it move from third to first in the rankings, Mr. Martin said. The service scored well in account offerings, trading charges and fees, and interaction. “They help customers completely understand the fees,” he said, and its fee structure is “simple and straightforward.”
The overall industry score suffered from declines in satisfaction at some of the larger players, which pulled down the index because those firms represent a large number of customers, he said. Fidelity, for instance, dropped from fifth place last year ( when it tied with T. Rowe Price) to seventh place this year, although it still ranked above the industry average.
Three firms ranked below average: ShareBuilder from Capital One (formerly owned by ING Direct), Merrill Edge and Wells Trade.
Do you use an online brokerage, and are you pleased with its service?
Article source: http://bucks.blogs.nytimes.com/2013/06/17/user-satisfaction-with-online-brokerages-declines/?partner=rss&emc=rss
Speak Your Mind
You must be logged in to post a comment.