J.D. Power: Schwab No. 1 among do-it-yourself investors
Following Schwab in the ranking were Vanguard, Scottrade, TD Ameritrade and Fidelity Investments.
Among investors who handle investments on their own, Charles Schwab & Co. ranks highest in customer satisfaction, according to the J.D. Power and Associates 2009 Self-Directed Investor Satisfaction Study, which was released today.
The study found that access to investment information and tools is becoming increasingly important to investor satisfaction.
“While self-directed investors make trading decisions on their own, they still rely on their investment firm to provide information and tools that assist them in making those decisions,” said David Lo, the research firm’s director of investment services.
“Price and trade execution are no longer strong differentiators among firms, as various institutions offer essentially free trades. Providing compelling investment tools and information, as well as a superior interaction experience, is the best opportunity for firms to set themselves apart,” he said.
Following Schwab in the J.D. Power ranking were Vanguard, Scottrade, TD Ameritrade and Fidelity Investments.
The study found that overall satisfaction increases as self-directed investors use additional resources and tools provided by their investment firm, such as financial planning services, online stock tools and educational seminars or webcasts.
The study measured customer satisfaction based on performance in six factors: interaction, account information, trading charges and fees, account offerings, information resources, and problem resolution. It was based on responses from more than 5,000 investors who make all of their investment decisions without the counsel of an investment adviser. The study was fielded between June and July.
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