Document Type



The late 1990s have witnessed a spurt in the growth of online brokerage, as new and established companies competed for a share of the red-hot market in Internet stock trading. Companies such as E*Trade, Ameritrade, and Datek Online emerged, while better-known discount brokers, such as Charles Schwab, Fidelity, and TD Waterhouse, also prospered in the new Web-based environment.

The objective of this paper is to study seven U.S. online brokerage firms: Ameritrade, Charles Schwab, CSFBdirect, Datek Online, E*Trade, Fidelity, and TD Waterhouse. These firms will be compared and ranked based on their commission, features, services, and e-business technologies. A new group of heavyweight contenders, namely the traditional full-service brokerages, are now stepping into online trading. The list includes Merrill Lynch, Prudential Securities, and Salomon Smith Barney. While the fullservice firms are certain to face significant challenges in adapting a new way of doing business, their entry is certain to change the game for the online players