According to a Grassroots® survey from Allianz Global Investors, one of the world’s leading active investment managers, roughly 75% of the 550 IT decision-makers surveyed globally, are expecting their budgets to increase in 2020 compared to the previous year.
Price is the key incentive for online brokerage customers to switch firms
Despite extremely high satisfaction rates among online brokerage customers, nearly one-third would change firms to get a lower price per trade and even more would switch to trade ETFs for free.
Grassroots® Research interviews with about 500 online brokerage customers in the US revealed that 91% are satisfied with their primary online brokerage.
Sources said the top three criteria for selecting an online brokerage are ease of use, price per online trade and account maintenance fees. Looking ahead, 32% are planning to switch online brokerages in the next six months, while 58% are unlikely to switch. Sources’ primary reason for planning to switch is lower price per online trade, followed by improved ease of use.
Meanwhile, 82% of sources would be at least somewhat likely to switch online brokerages if they could trade ETFs for free, 34% would be very likely to switch to save USD 1–USD 3 per trade, 44% would do so to save USD 4–USD 9, and 65% would do so to save USD 10 or more.
Regarding the number of transactions per month on average with their primary online broker, 45% of sources make six to 20, while 40% make five or fewer, and 15% make 21 or more. In the next 12 months, 48% expect their number of transactions per month to remain the same, while 49% expect to increase their number of transactions.
Grassroots® Research is a division of Allianz Global Investors that commissions investigative market research for asset-management professionals. Research data used to generate Grassroots® Research reports are received from independent, third-party contractors who supply research that, subject to applicable laws and regulations, may be paid for by commissions generated by trades executed on behalf of clients.
Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Bond prices will normally decline as interest rates rise. The impact may be greater with longer-duration bonds. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.
The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted. This material has not been reviewed by any regulatory authorities. In mainland China, it is used only as supporting material to the offshore investment products offered by commercial banks under the Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations.
This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors U.S. LLC, an investment adviser registered with the U.S. Securities and Exchange Commission; Allianz Global Investors Distributors LLC, distributor registered with FINRA, is affiliated with Allianz Global Investors U.S. LLC; Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors (Schweiz) AG, licensed by FINMA (www.finma.ch) for distribution and by OAKBV (Oberaufsichtskommission berufliche Vorsorge) for asset management related to occupational pensions in Switzerland; Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424, Member of Japan Investment Advisers Association and Investment Trust Association, Japan]; and Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan.
Demand for ESG investing is rising. Yet for many, there is still a lack of clarity around what ESG is, what strategies are available and the potential implications for an investor’s portfolio. Understanding how a fund approaches ESG investing and the types of factors they may prioritize can give investors more confidence about which funds align to their values.