Discount brokers are winning the day, according to one report, but you wouldn’t know it from the their stock declines this morning. Reuters quotes Aite Group, a consulting firm up in Boston, which says U.S. brokerage houses have lost “a significant chunk of business” to online firms. Specifically, ETrade Financial (ETFC) and Schwab (SCHW) and TD Ameritrade (AMTD) are the biggest threat among discount brokerages to traditional full-service brokers. Thing is, all three are suffering worse than the decline in the SPDR Select Sector Financials ETF (XLF). While the ETF is off half a percent, at $14.55, ETrade, Schwab and AMTD are off 1.8%, .8%, and 2.6%. Morgan Stanley (MS), by contrast, is off a mere 1% at $30.68.
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