Tradewell Discount Investing Results Suffering |
Tradewell Discount Investing
www.tradewell.com
Last month we reported how difficult it has proven for American Express to leverage its brand name in the area of online trading. Despite an estimated $30 million investment, they reportedly had only 10,000 accounts compared to the 750,000 of industry leader, Charles Schwab. This month comes a report from Financial NetNews that Tradewell has suffered similar results. According to the newsletter, Tradewell has only 1,039 accounts despite a $2 million marketing investment, an acquisition cost of more than $1,900 per account. This compares to a $75 acquisition cost for each of the 32,000 accounts booked in second quarter by E*Trade according to CFO Stephen Richards. AmeriTrade, parent of Aufhauser, Ceres Securities and eBroker, recorded acquisition costs of $312 for each of 24,000 accounts booked in the latest fiscal year, according to Pete Ricketts, Director of Corporate Development.
Contact: Steve Schoenfeld is CEO at Tradewell, 717.234.8484.
