Forecast

Report Methodology

Table of Figures

Customer Assets, 2001-2007

Online Brokerage Households, 2001-2007

Online Assets by Income Segment, 2002 and 2007

Online Household Assets, 2002 and 2007

Online Assets as Percentage of Total Household Assets, 2001-2007

Online Brokerage Accounts and Households, 2001-2007

Trading Frequency Segments, 2001 and 2007

Online Trades by Trading Frequency Segment, 2001-2007

Online Assets in Mutual Funds, 2001-2007

Abstract

Firms should be prepared for the markets to worsen, not improve. Investors are looking for safety and stability, and firms should cater to these desires in their marketing and acquisition strategies. Investors have more accounts than they can easily manage—many with misplaced passwords or PIN numbers, reducing effective liquidity. Firms should encourage customers to consolidate accounts and provide them with the means to do so.

Forecast

The year 2002 was the second awful year in a row for discount brokers, with full-service houses faring slightly better. Economists and financial analysts express hope that the market will hit bottom in late 2002 or 2003, but things still look dim from a business perspective. Other market segments will recover in coming years, in terms of customer assets and product sales.

• Lead Analyst
• Robert Sterling
• Contributing Analysts
• Vikram Sehgal, Fiona Stadtler Swerdlow