Despite continuing market volatility online brokers are making continued efforts to expand functionality and elevate site usability to ever- higher levels, according to the Q3 2002 Internet Scorecard launched today by says GomezCanada, a firm which measures internet quality.

BMO InvestorLine has maintained its lead to secure first place in GomezCanada’s ranking of online brokers. “The addition of asset allocation models and
improved analytics as well as exceptional customer service, enabled BMO InvestorLine to maintain its lead,” says Guy van Rooyen, senior analyst with
GomezCanada.

TD Waterhouse and E(*)Trade were second and third respectively with E(*)Trade maintaining its dominance in the Active Trader and Serious Investor categories. Particularly noteworthy was the rapid rise of Qtrade, a relative unknown within Canada, which achieved fourth place overall.

“While the markets’ downdraft have impacted self-directed brokers and the industry as a whole, this has not stopped firms from improving site usability and utility in preparation for the eventual market turn-around,” says van Rooyen. “The central focus of these efforts has been on providing improved planning functionality to attract and retain the growing Life Goal Planner segment.”

Over 50% of Scorecard firms now provide some form of financial planning tools online, up from 23% six months ago. “Life Goal Planners” continue to dominate the marketplace, constituting 64.9% of active online investors. Customer service across the industry showed a marked improvement from previous Scorecards across both phone and e-mail channels

Another trend captured by the latest Scorecard was the focus placed on customer segmentation strategies. “This is reflected by CIBC’s push to attract Active Traders and by Scotia’s focus on the Life Goal Planner and One-Stop Shopper segments,” says Don Rolfe, managing director, GomezCanada.

Rankings in the Q3 2002 Internet Brokers Scorecard are as follows (previous Scorecard finish in brackets):

1. BMO InvestorLine (1st)
2. TD Waterhouse (2nd)
3. E(*)Trade (3rd)
4. Qtrade (7th)
5. Scotia McLeod Direct (8th)
6. CIBC Investor’s Edge (5th)
7. Royal Bank Action Direct (6th)
8. Merrill Lynch HSBC (10th)
9. National Bank Invesnet (11th)
10 Credential Direct (12th)
11. eNorthern (9th)
12. Sun Life Securities (13th)
13. Disnat (New entrant)