Tags: Scottrade | JD Power | investor | satisfaction

JD Power: Scottrade Tops Rankings for Self-Directed Investor Satisfaction

By    |   Thursday, 22 May 2014 09:59 AM

Scottrade heads J.D. Power's 2014 list of the top brokerages for self-directed investor satisfaction.

The firm ranked No. 1 for the second straight year. It is followed by Vanguard, Charles Schwab, TD Ameritrade and E-Trade. The J.D. Power 2014 U.S. Self-Directed Investor Satisfaction Study, which is based on responses from 3,764 investors who make all of their investment decisions without the counsel of an investment advisor, measures interaction, account information, trading charges and fees, account offerings, information resources and problem resolution.

J.D. Power finds that while self-directed investors still make their own investment decisions, they want more support from their brokerages in terms of tools, education and the ability to interact with brokerage workers when they have questions or need guidance.

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Investors aged 35 or younger are particularly interested in insights and advice, the study reveals.

Overall, 85 percent of the respondents say they use the firm's website and 10 percent use a mobile device. Among young investors, website use is decreasing (86 percent in 2014 vs. 91 percent in 2011), while their use of mobile devices is increasing, compared with 2011(21 percent vs. 13 percent, respectively). Among retirement investors (62 years or older), website use is increasing (84 percent in 2014 vs. 80 percent in 2011), as is their use of mobile devices (5 percent vs. 2 percent, respectively).

"We're seeing a tremendous shift in the industry where price alone is not enough to satisfy self-directed investors, especially young investors, who are important for the long-term future of the business and who are begging for a change," Craig Martin, director of J.D. Power's wealth management practice, said in a statement.

"Firms need to take an outside-in view that focuses on customer needs in lieu of their current inside-out approach that has led to an industry-wide pricing and technology race."

As an investor, of course, you must first determine whether you want a full-service brokerage or an online brokerage.

"If someone needs their hand held, a traditional broker or bank can be helpful," Mick Heyman, a financial adviser in San Diego who uses online brokerages for himself and his clients, told Bankrate.com.

"But for the average person, I think an online broker is great. Online brokers have caught up to and maybe even exceeded what a traditional broker or bank can offer."

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

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Scottrade heads J.D. Power's 2014 list of the top brokerages for self-directed investor satisfaction.
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Thursday, 22 May 2014 09:59 AM
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