IEX Netprofiler Internet Broker Research 2009
IEX Netprofiler Internet Broker Research 2009: BinckBank is still the best online broker, but newcomers Lynx and Today's Brokers continue the pursuit.
- Website BinckBank best rated
- New brokers New Lynx and Today’s Brokers approach Alex and Binck
- 38% of customers of large banks plan to switch broker
Introduction
The websites of BinckBank, Alex and Lynx are best rated in the Internet Broker Research 2009, carried out by the online marketing agency Netprofiler in cooperation with investor platform IEX (www.iex.nl). The websites of the major banks (ABN AMRO, Rabobank, Robeco, Postbank and Fortis Bank) are behind on the websites of the top three mainly in the areas of functionality and information.
Research
The Internet Broker Research in 2009 took place during December 2008 and January 2009. It was the third time that the investigation was conducted. The study consists of expert analysis and customer research.
In the expert analysis, the websites of the ten main Dutch brokers were subject to the critical gaze of the usability experts from Netprofiler. The basic modules for the novice investor were analyzed. Various institutions such as Binck, Alex and ABN Amro have sophisticated broker platforms that are only available at extra cost or for the active investor. These platforms are not included in the expert analysis. The websites of the brokers have been assessed on the basis of the following eleven criteria:
- Information before the login - Usability of login - Submission Process - Information - Functionalities - Design |
| - Contact Opportunities - Usability after de login - Placing an order - Reliability and technology - Interaction |
Each broker has received a rate of 1 to 10 for the eleven criteria. The average of these figures resulted in the final score of the expert analysis.
The second part of the research consisted of an extensive customer research. Respondents were recruited via the websites www.iex.nl, www.debeurs.nl, eurobench.com and various newsletters sent by IEX. In total, more than 1,000 investors gave their opinion on the broker where they invest. The respondents assessed the web site of their broker on the following aspects: usability, ordering, information, security, services offered and costs. The average of these figures provided the final score of the customer research. .
In addition to the assessment of the site, the investors were asked whether they would consider a switch to another internet broker and if so, which Internet broker they would like to change to.
The figures of the expert analysis and the figures of the customer research form the final score per broker.
Research results
Internetbroker |
| Expertanalysis |
| Customer research |
| Final score |
1. BinckBank |
| 8.15 |
| 7.56 |
| 7.86 |
2. Alex |
| 7.42 |
| 7.48 |
| 7.45 |
3. Lynx |
| 7.03 |
| 7.52 |
| 7.39 |
4. Today's Brokers |
| 7.05 |
| 7.38 |
| 7.22 |
5. ABN AMRO |
| 7.18 |
| 7.20 |
| 7.19 |
6. Rabobank |
| 7.21 |
| 6.73 |
| 6.98 |
7.SNS Bank |
| 6.45 |
| 7.51 |
| 6.97 |
8. Fortis |
| 5.55 |
| 7.41 |
| 6.48 |
9. Robeco |
| 6.42 |
| 6.39 |
| 6.41 |
10. Postbank |
| 5.55 |
| 6.54 |
| 6.33 |
N.B. The numbers in the above list are rounded to 2 decimal places.
The best rated website is again BinckBank, just like in 2006 and 2008. BinckBank scores particularly well on usability, information and features offered. Alex ends in 2nd place just before newcomers Lynx and Today's Brokers. With a growing customer base Lynx and Today's brokers become serious competitors for BinckBank and Alex. Lynx scored slightly higher than Today's Brokers in the customer research and therefore Lynx is awarded the price for best newcomer. It is not remarkable that the top 4 consists of investment specialists.
The large banks have become a step closer to the best brokers this year. With a 3rd and 4th place in the expert analysis, Rabobank and ABN AMRO score a few points higher than Today's Brokers and Lynx, that both use the U.S. trading platform of Interactive Brokers. E-Trade, another American supplier in the Netherlands hasn’t got sufficient customers to be included in the research
Of the large banks, ABN AMRO has the best papers in the competition with the specialists, thanks to the improved version of the online trading TradeBox. This new application of ABN AMRO is not included in the benchmark of this research but is certainly as good as the applications of the specialist brokers.
The site of SNS Bank is most improved compared to last year's due to several new features and more information.
Switchers
A new question in the customer survey this year was whether the investors already changed broker in the past. Of the 50% that previously had invested elsewhere, the most came from Postbank and ABN AMRO. Over 60% indicated that the reasons for the switch were that their current investor is cheaper and about 55% that the usability is better.
Just like last year the online survey asked customers whether they were seriously considering a switch to another internet broker. Of the 28% who would consider a move a large proportion (40%) would switch to Today's Brokers. The 2nd choice being BinckBank. 38% of the major bank customers considered switching. It is striking that the customers of major banks who have indicated they are considering a switch more than half would choose for BinckBank.
On the question: "Would you switch investment if you can save costs?" 30% indicated that they would switch if the switch would bring more than 20% reductions. 25% of the respondents said however that they were satisfied and costs were not relevant.
Respondents
- more than half of respondents aged over 40
- more than half of respondents aged over 40
- 46% have more than 10 years experience in investment
- Most investors have completed a HBO education third level
- 84% of respondents in 2008 made a loss on the stock exchange
- 56% say it affects their trading behavior and they become more cautious when conducting transactions
Award |
| Winner |
Best broker overall Best broker expert analysis Best broker customer research Best large bank overall Best large bank expert analysis Best large bank customer research Best newcomer Best improved website |
| BinkBank BinckBank BinckBank ABN AMRO Rabobank SNS Bank Lynx SNS Bank |
Conclusion
In summary it can be concluded that the specialist brokers (BinckBank, Alex, Lynx, Today's Brokers) have the best broker sites. They offer the most information and the ease of use is highest. ABN AMRO, Rabobank and SNS Bank are closer but still not the specialists. The main reasons for an internet broker to choose are the costs and usability. The largest part of the investors who consider switching to another Internet Broker are thinking of making a move to Today's Brokers.
Frans Appels, director of Netprofiler: "Most brokers have made significant improvements in their site and trading platform in recent years. Due to the use of streaming prices and improved usability both the active and less active investors are better served."
About Netprofiler
Netprofiler is an online marketing agency in Amstelveen that specializes in measuring and improving online performance, usability research, search engine marketing and web analytics. The 15 consultants help companies to generate more online visitors, to increase the ease of use of websites and to improve the conversion on web sites. Netprofiler is a partner of Google Analytics, Omniture and WebTrends and works for clients like Microsoft, Nuon, Canon Europe, Senter Novem, TiasNimbas and World Wildlife Fund
About IEX
IEX is the largest financial community of the Netherlands. The websites www.iex.nl, www.debeurs.nl, www.guruwatch.nl, www.beloggen.nl, eurobench.com and various newsletters subscribers continuously inform about the latest stock market news, business news, opinions columnists and the latest investment products. IEX issues the IEX investment magazine with a circulation of 45,000 copies eight times per year.
