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Schwab and -- getting slammed today both discount brokers.
Reporting a steep decline in customer trading during November's extraordinary volatility rocked the markets and people are frankly just scared.
But -- ambitious young rivals to the major brokerage houses.
-- -- investors rising anxieties into their gain joining me now is Michael were an -- he is CEO of online brokerage firm.
-- -- good to see you Michael it is a challenging if I mean first of all you have that the volatility of market then you have made off you have MF global -- -- We -- lot of challenges to get new customers.
Oh absolutely there's a lot of challenges I think this self directed investor has got a little skittish and little worried about the market so how do you draw the meant.
Well we job and then based on our offer what we -- trying to create is the most compelling offer we can peace time.
Powerful tools -- intelligence spectacular service.
-- half the price with major competitors offer.
And how is that succeed house -- business plan working out phenomenally well we're exceeding growth about four X with the industry averages on new accounts and on assets.
But under different -- to -- a revenue perspective investors are little skittish they don't like uncertainty and and after the volatility we've seen in the markets in August and the things that you mentioned.
There's -- McCain can be credibility in the trust.
A lot of cash is content to the sidelines you actually -- customers.
To bring in new customers right.
Well I don't really think that incentives have been around since banks have been offering appliances right -- -- -- you -- -- mining -- -- bank.
I think incentives work when customers are and loose in the -- when they've already made the decision that they're gonna go to a new broker relationship.
What it does this kind of accelerate that process something they've already started let me let me be specific -- of the folks out there -- no we're talking about you -- customers a hundred bucks if they bring in that some of their friends is that right.
Slightly different some of the other competitors do that what we do is a refer a friend programs so when.
A customer and we want to encourage him to become our evangelists.
-- tell their friends if their friend comes in will give a hundred dollars to our customer.
And a hundred dollars to the prospect that comes in and opens and each one gets a hundred bucks that's routes that worked out -- works out great because it's not the money like -- it's not the money -- -- doesn't hurt or he wouldn't be doing it certainly doesn't hurt.
But it's really tune in -- that conversation that the conversation comes up at the cocktail party -- the dinner table and people are talking about an online investing.
We want our customers to bring -- -- count.
And he -- and you're your private now have people been talking about an IPO.
Of course I think that's often our future really aspires to that for right now are very happy being a kind of come and who is your biggest competitor right now.
So we feel we compete with Scott -- E*Trade and Ameritrade primarily that's where we primarily -- counts from.
And let me ask get tough questions what do they do that you can't do yet.
So what do they do that we can't do yet I think it's really around -- size and their ability to have more leverage round margin and they can absorb losses much better than you can they absorb losses much -- yeah so does this market if if it continues to this kind of volatility much longer are you in trouble.
No I think we're very well capitalized -- we're very strict on risk management controls.
-- frankly we've done a study about volatility our customer base tends to skew very young.
And people below forty have more -- propensity to trade -- volatile markets.
We're introducing new trading platform -- -- next week actually that helps people take advantage of that volatility.
But that's younger traders game and it's echo back up the tech sector -- Conseco CEO Michael we're nearing Michael great to see it.
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