Matching client needs with firm strengths
The growth of online brokerages in recent years means there is a securities brokerage available to meet the needs of a myriad different client needs. The Intellidex Top Securities Brokers survey for 2022 ranks firms into what it calls archetype rankings. These rankings are designed to match the needs of clients with the most suitable brokers.
The survey classifies young investors under the age of 35 who save regularly from their incomes as largely self-directed. They typically interact mostly online, requiring a degree of educational guidance and low cost trading in return for relatively small monthly investments. Firms ideally suited to the young investor, according to the survey, includes PSG Wealth, ThinkMarkets, EasyEquities, QuickTrade, FNB Stockbroking and Portfolio Management and Standard Online Share Trading.
The survey classifies lumpsum investors as retirees or recipients of large-sum payouts from an inheritance or retirement savings to be invested in a broker account. Firms ideally suited to this type of investor include Sasfin Securities, PSG Wealth, FNB Stockbroking and Portfolio Management and Standard Online Share Trading.
Traditional investors are those older than 35 who regularly contribute to a portfolio. These are typically mid-career investors who have surplus income they regularly invest on the stock market. Firms suited to this type of investor include Rand Swiss, Afrifocus Securities, PSG Wealth, QuickTrade, Sasfin Securities, Herenya Capital, EasyEquities, Investec Wealth & Investment, Standard Online Share Trading, FNB Stockbroking and Portfolio Management and Absa Stockbrokers & Portfolio Management.
Executive clients with complex needs including large, concentrated equity exposures require firms able to provide financial engineering skills as well as financial advice. The survey says PSG Wealth, FNB Stockbroking and Portfolio Management and Standard Online Share Trading are suited to this type of investor.
Active traders are those that use index futures, contracts for difference or single-stock futures to trade. Their priorities include efficient executions and low trading costs. Firms suited to this kind of investor include ThinkMarkets, QuickTrade, GT247.com, IG and Standard Online Share Trading.
Social investors are those that save through stokvels and other group savings schemes. Firms such as EasyEquities, FNB Stockbroking and Portfolio Management and Standard Online Trading cater to these kinds of investors.
In addition to these archetypes, the Top Securities Brokers survey also considers the strengths of the different brokerage firms. When it comes to client support, including research and educational tools, Unum Capital, Sasfin Securities, Rand Swiss, Herenya Capital, PSG Wealth, Afrifocus Securities, Quick Trade and ThinkMarkets are the top performers.
Many of these same firms provide the best value for money. In this measure, Herenya Capital, Unum Capital, Rand Swiss, ThinkMarkets, EasyEquities, Sasfin Securities, Afrifocus Securities, QuickTrade, PSG Wealth and GT247.com come out tops.
When it comes to the available instruments and trading tools such as direct market access, ability to view market depth, live prices, charting, stop loss orders and limit order, firms such as Rand Swiss, Standard Bank, Unum Capital, FNB, PSG, Afrifocus, Sasfin, Herenya Capital, Independent Securities and IG are the top performers.