Fidelity, Schwab or E-Trade? Path-to-Trade analysis
From banking to trading, the world of personal finance is as varied as the customers who use these services. We have been analyzing the U.S. investment market for nearly a year by looking into the stocks consumers show interest in. Today, we have taken our analysis one step further, focusing on consumers’ Path-to-Trade activity on the leading trading platforms: E-Trade, Schwab and Fidelity. We found that E-Trade has the most engaged customer-base, which are 4-5x more likely to trade stocks. Read on for our full data-driven trading analysis.
Full funnel Path-to-Trade analysis
We analyzed three months of customer Path-to-Trade activity on Fidelity, Schwab and E-Trade, to detect relative market shares and full-funnel performance by new customer registration, activation and trades. Our data indicates that while Fidelity wins for top-of-the-funnel traffic, E-Trade dominates the rest of the funnel with the highest login and stock trading rates.
Here is the full breakdown of what we have found from the top-of-the-funnel all the way down to stock trading activity:
Fidelity attracts the most eyeballs, bringing in 63 percent of the visitors and converting a percentage of them into registered users. However, their customers are 44 percent less likely to log into their account and are the least likely to perform stock trades, compared to Schwab and E-Trade. These low login and trading rates indicate that users are visiting Fidelity for other purposes.
Schwab comes in second for market share, with nearly a quarter of the visitors to all three trading platforms. As for the rest of the funnel, Schwab has the highest login rate but its visitors are 40 percent less likely to register for a new brokerage account, demonstrating that Schwab is lagging when it comes to customer acquisition.
E-Trade may have the lowest share of traffic, but it has the most active audience. E-Trade visitors are the most likely to convert into registered customers and, most importantly, they are 4-5x more likely to perform a stock trade than Fidelity and Schwab customers.
Interestingly, E-Trade and Schwab’s login rates are comparable, however, E-Trade’s trade rate is more than triple that of Schwab’s, indicating that there is room for Schwab to improve the Path-to-Trade funnel post login.
Bottom line: A click-by-click analysis of the full Path-to-Trade reveals insights into every step of the funnel. Our analysis found that each of the three leading trading platforms has room to optimize a different aspect of their funnel. With the lowest share of traffic, E-Trade should focus on filling up the top-of-the-funnel. Schwab’s focus should be on increasing new customer registrations and trading rates. Fidelity needs to understand how to foster customer engagement to increase its low account login and stock trading rates and remain competitive.