The Emergence of Online Brokers

The New York Stock Exchange (NYSE) was established about the same time as the LSE. The NYSE members charged for their services on the basis of a commission rate set by the Securities and Exchange Commission (SEC). The NYSE had the authority based on SECĀ“s permission to set the minimum commission rate. This fixed commission rate limited the competition among …

UrielThe Emergence of Online Brokers

Online Trading during the first years of the new millennium

Since the beginning of online trading the commission rate dropped from around $50 a trade down to around 1/5 of that and even some companies like Bank of America, Zecco and Saxo Bank offered commission free trading in stocks. These price slashes generated great growth in the industry according to Mc Kinsey & Co who states that in 1999 online …

UrielOnline Trading during the first years of the new millennium

History of the Financial Service Industry and Online Trading

In these series of posts, I will synthesize the history of the financial service industry. Firstly, I will look into how the financial market and online brokers emerged. In a later post, I will talk about how the online brokerage industry looks like today. As such, I will not examine the financial service industry as a whole, but rather how …

UrielHistory of the Financial Service Industry and Online Trading