consulting firm in Hawthorne, California, averages three trades a month. Her online account is worth $25,000 and represents less than 1% of her total portfolio and has an annual growth rate of 14%, but she has good and bad days as a new online investor.
“My online trades represent play money and are directed toward my personal interest in e-commerce, technology and Africa,” she says. For her, drawbacks include the time it takes to monitor her account with consistent frequency, the inability to analyze data in a timely manner in order to make decisions (areas where Fowler still relies on her professional advisor) and the numerous e-mail and Internet scams designed to entice consumers to invest online.
Online investing can yield fast trades and quick cash, but it can also lead to an even quicker dip in your investment portfolio. So make sound choices before clicking that buy or sell button.
|
Who’s who on the road to eBrokerage |
|||||
|
|
Trade online |
Online, have broker, not trading |
Online, no broker |
Not online, have broker |
Not online no broker |
| Percent male |
70% |
56% |
56% |
51% |
44% |
| Percent female |
30% |
44% |
44% |
49% |
56% |
| Mean net worth |
$144,177 |
$144,179 |
$125,453 |
$216,476 |
$61,328 |
| Mean income |
$59,629 |
$57,889 |
$47,319 |
$47,856 |
$25,141 |
| Mean age |
39 |
43 |
38 |
52 |
49 |
| Number of trades per year |
7.86 |
3.8 |
N/A |
N/A |
N/A |
| Completed 4 years of college |
44% |
39% |
29% |
36% |
14% |
| Use PC at work |
78% |
67% |
62% |
43% |
28% |
| Source: Forrester Research Inc. | |||||
