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Strong equity market leaves online broking business flat

14 August 2014 4:16PM
The strong performance of the Australian sharemarket over the past year has not translated into more business for online brokers. Researcher Investment Trends found that the number of Australians using online brokers had not changed over the past 12 months.According to Investment Trends' latest Online Broking Report, 585,000 adult Australians invest through online brokers. It reported the same number 12 months ago.The report said there had been an inflow of about 46,000 new online investors each month this year but this growth had been offset by those who stopped investing."Fear levels have fallen but investors are not yet bullish," Investment Trends said in a media release.The big banks continue to dominate the sector. Commonwealth Bank's CommSec has a 59 per cent market share, ANZ's E*Trade has a 25 per cent share, Westpac Online Investing has a 13 per cent share and nabtrade has an 11 per cent share.The report did not provide any details about trading volumes but Commonwealth Bank offered some insight in its financial results presentation yesterday. CBA said it had 335,000 active CommSec customers (once upon a time it used to quote a customer number close to one million). It said it held market share over the past year.However, CommSec's combined interest income (from margin lending) and non-interest income (brokerage) was down three per cent year-on-year. Trading volumes were also down three per cent.

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