Retail Brokerage and Distribution Report—Canada Winter 2021
The Online Brokerage Competitive Landscape: Looking Back, Looking Ahead
For the Canadian online/discount brokerage (ODB) channel, 2020 will stand out as a banner year—indeed, the most successful on record by far. The feature reflects on the record growth in trading, assets and accounts and the role of COVID-19 in bringing significant numbers of investors into the channel for the first time.
Two emerging challenges are considered, the spectre of slower growth rates amid a maturing, competitive environment and more pressingly, how the channel will engage a newly onboarded generation of investors for the long term—convincing them to stick around when today’s exhilarating market conditions subside. The feature provides valuable insights for channel participants assessing potential paths forward for a business that is quickly starting to expand beyond its self-directed roots.
Moreover, it provides a compelling read for those assessing the growing competitive influence the channel is having in the Canadian wealth distribution landscape, as well as those assessing potential entry into the channel.