Due in large part to its customer service, Charles Schwab broke ahead of the pack to
be rated the best online brokerage, according to a recent study done from Gomez Advisors Inc.
Gomez rated 53 online trading firms in its Winter 1999/2000 Internet
Brokerage Scorecard. Charles Schwab topped the list, followed by E*Trade (EGRP)
, DLJdirect (DIR), Fidelity Investments and National Discount Brokers (NDB).
Schwab’s resources for attracting new customers is what put it over the top,
said Dan Burke, senior analyst at Gomez Advisors. The current trend is to
decrease customer service as membership increases, but Burke said Schwab was
able to maintain both effectively.
“The key to success for online brokers is managing all of this new business
and providing the services that customers are demanding,” Burke said.
“Brokers must ensure their customer service keeps pace with their account
growth.”
Online trading has grown to become a leading e-commerce function on the Web.
Last year’s scorecard was compiled with only 20 brokerages, with DLJdirect
taking the top spot, followed by Discover
Brokerage, E*Trade, Datek, with
Schwab placing fifth.
