Online Investors Staying Loyal To Their Brokers

A new report has found that Australian online investors are choosing to stay with their current broker, while mobile platform functionality stands out as a major point of contention for traders considering a switch.

Investment Trends’ survey of over 12,000 traders and investors found that only 4% of online investors have left their current broker for another in the past 12 months.

Investment Trends Research Director Dr Irene Guiamatsia says Aussie brokers have some of the most loyal clients compared to their international counterparts.

“Low switching levels are in line with the rising client satisfaction levels observed in the last 6 months,” said Dr Guiamatsia.

Despite this rising satisfaction, frequent traders who trade at least once a week have increased their switching activity from 4% to 6%.

“Brokers can’t afford to rest on their laurels and must deliver a proposition that not only meets the needs of mum and dad investors, but also the more sophisticated, frequent trader,” said Dr Guiamatsia.

“Mobile platform functionality is among the fastest growing drivers of switching intentions at the moment, with the proportion of switchers who cite this increasing three fold in the last 12 months.”

Online investor numbers on the rise

After stalling in 2016, the research also found that Australian online investor numbers are on the rise.

The findings show 635,000 unique individuals placed at least one share trade in the last year to May 2017, which is up from 605,000 six months ago.

“The recent strong performance of domestic equities appears to have encouraged many Australians to continue trading, said Dr Guiamatsia.

Investment Trends’ Monthly Intentions Index highlights that Australians’ investment outlook has become increasingly volatile, which suggests participation is likely to stay highly reactive to market performance.