Clients rate their stock­bro­kers, and are mostly sat­is­fied

Financial Mail - Investors Monthly - - Cover Story -

28E CAP­I­TAL IS THE WIN­NER OF the 2017 Peo­ple’s Choice award.

This award is cov­eted as it is based purely on client opin­ions. This year 6,117 peo­ple par­tic­i­pated in an on­line sur­vey of clients, en­sur­ing a high de­gree of cred­i­bil­ity to the Peo­ple’s Choice scores. They also contribute­d to nu­mer­ous other cat­e­gories, where their opin­ions are in­cor­po­rated in the scores.

It was an ex­tremely tight race, with ev­ery one of the top 10 bro­kers rated “ex­cel­lent” by their clients.

28E Cap­i­tal, which ranked sec­ond last year, dis­places the win­ner of the past two years, DWT Se­cu­ri­ties. GT247/EasyEquiti­es main­tained third place. 28E pipped DWT by hun­dredths of a point. The top three all scored at least 9/10 from clients. 28E and DWT are both pri­mar­ily de­riv­a­tives-driven bro­kers that cater for ac­tive day traders.

Client com­ments were over­whelm­ingly pos­i­tive for both firms. Many 28E clients re­marked on the firm’s con­tin­ual quest to im­prove both the qual­ity of ser­vice and tech­no­log­i­cal ca­pa­bil­i­ties. One 28E client said: “I can­not em­pha­sise how nice it is to have a real ser­vice-ori­en­tated bro­ker. You can call in [and speak to] a hu­man and dis­cuss your trade ideas with knowl­edge­able peo­ple.”

An­other pointed out that the firm had be­come more ac­tive in terms of pro­vid­ing trad­ing ideas and more in­ter­ac­tive through What­sApp and email groups.

We base these scores on two ques­tions that we be­lieve are in­te­gral to as­sess­ing client sat­is­fac­tion lev­els.

We asked the clients to rank over­all qual­ity of ser­vice and how likely they were to rec­om­mend their bro­ker to friends and fam­ily.

Clearly SA’s re­tail stock­bro­kers are ex­cel­lent at keep­ing their clients happy. Less than one point sep­a­rates first place from 10th, re­flect­ing the fiercely com­pet­i­tive na­ture of the in­dus­try.

What’s no­table in this year’s rank­ings is that the bou­tique-type firms dom­i­nate: San­lam Pri­vate Wealth/iTrade is the only big player in the top 10. This at­tests to the smaller firms be­ing quicker to adapt to market con­di­tions and hav­ing more di­rect con­tact with clients.

How­ever, we do won­der whether clients of the broking di­vi­sions of the big banks are per­haps giv­ing lower rat­ings be­cause of poor ex­pe­ri­ences they might have suf­fered from trans­ac­tional or other bank­ing func­tions which are out­side the do­main of the stock­broking arms.

Over­all, how­ever, in­dus­try ser­vice lev­els are highly re­garded by clients. One third have been with their bro­ker for more than five years while 22% have been clients for less than a year, re­flect­ing both a healthy longevity of re­la­tion­ship and a good rate of new client sign-up.

Clients also be­lieve they’re get­ting good value for money, with 35% say­ing costs are “very af­ford­able” and 32% de­scrib­ing them as “af­ford­able”. Only 6.6% be­lieve they are ex­pen­sive.

Qual­ity of re­search of­fered by bro­kers is im­por­tant to clients — 26% use it ex­ten­sively while 60% look at it oc­ca­sion­ally. Out­side of their bro­kers, the ma­jor­ity (70%) of trad­ing ideas and in­vestor in­for­ma­tion come from the fi­nan­cial me­dia.

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