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28 Nov 2012 (AFR) – Cash switch could boost online brokers

[COMMENT: This lengthy article includes a great table comparing key online brokers and current charges – nabtrade, CommSec, Westpac, E*Trade. Also cash account rate comparisons. It seems that online brokers are becoming more competitive to win over more of the new business from the newly interested investors.]

(28 Nov 2012, AFR, p23, Bina Brown)

‘Online brokers are emerging as the method of choice for investors contemplating a return to equities.’

‘The use of online brokers is set for a resurgence as self-directed investing grows. According to the latest study of investors by Coredata’s Private Bank Intelligence Unit, overwhelmingly, the reallocation of cash assets, when it happens, will be carried out by investors themselves via online channels. “The self-directed investors consider themselves the most capable to make the switch from cash to equities,” says PBIU’s Guy Ogier. “Capability determines actuality and they can do it easily, cost-effectively, quickly and maintain control.” ‘

‘Coredata’s recent post-cash survey of investors found that the majority of investors had no plans to reinvest their cash at this stage, but about 12 per cent were planning to make a move within 12 months. Of those prepared to move, domestic equities were nominated as being the first investment choice, ahead of term deposits and property. The most likely catalyst for a switch from cash to equities is another cut in the official cash rate beyond the present 3.25 per cent.’

Read more at (might need AFR login access)

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Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.


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