Segment: Brokerage
Publication date: Thursday, August 30, 2007
# Pages: (65 pages)

Abstract | Table of Contents

As far as electronic funds transfers go, brokerage clients generally have two options – wire transfers or ACH transfers. While wire transfers are completed instantly, they usually carry significant fees. ACH transfers are generally free – making them the more attractive option to the average client – but usually take two to three days to process. Approximately 70% of the firms we looked at offer online ACH transfer capabilities. The levels of flexibility and options, however, vary.

Clients need to be comfortable knowing they can access their money at any time. It is a good idea, therefore, for firms to allow both incoming and outgoing ACH transfers – 83% of the firms in this report do so. Recurring transfer schedules are a valuable feature which can facilitate a disciplined investing or saving plan. Fortunately, all but one firm allows clients to set up recurring transfers, with firms offering as many as 12 transfer frequencies (e.g., weekly, biweekly, monthly, etc.)

Transfer interfaces highlighted in this report vary in terms of the number of steps required to complete a request. Just over 40% of the firms simplify the transfer request process by combining all options and input fields onto a single screen – the most convenient transfer request process. Other firms spread the steps out over as many as five separate screens – a significant inconvenience for the user.

Subjects

Online tools, calculators, etc.

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