Still, many of them us forex brokers account profitability comparison the financials benchmark sector. There is a misconception about brokerages regarding the extent to which they rely on trading commissions. Investors seeking to find the best online broker should consider historic equity returns and the average commission per trade values to compare these brokers. Editor’s note: Seeking Alpha is proud to welcome Robert Soos as a new contributor.
It’s easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to the SA PRO archive. According to research conducted by J. Power, a firm’s reputation and low trading fees are the two most critical drivers of initial firm selection among self-directed investors.
Being an active investor myself, this is hardly a fresh piece of information to me. Regarding low trading fees, since the revolutionary appearance of Robinhood, a new client bait expression that set foot within the brokerage industry, banners promoting zero-commission trades started to flood the online space. I have been tempted to jump on to the zero-commission train. However, as a robust desktop platform — enabling day trading — and a wide range of product availability is a must to me, the account change did not happen.
How do online brokers compete against each other considering the transactional fees they charge, and the ability to generate returns for their shareholders? Brokerage Stock Performance Beating Financials The road to outstanding stock price performance has been paved by multiple earnings surprises, share buyback announcements, stimulating monetary conditions, economic growth and lifted investor sentiment. Staying with last year’s results, the group’s underperformer was the global heavyweight forex broker Gain Capital. Investors have been disappointed by the revenue drop stemming from less trading activity in the OTC retail segment, as last year’s market volatility was hardly noticeable. Purely looking at historical stock performance gives an answer to my first research question. Despite melting commission fee levels, listed U.