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Please direct all media inquiries to J.D. Power and Associates Corporate Communications Department:


J.D. Power and Associates
Corporate Communications
2625 Townsgate Road
Westlake Village, CA 91361
Toll Free: (800) 274-5372
Phone: (805) 418-8000
Fax: (805) 418-8900
media.relations@jdpa.com


John Tews
Director, Media Relations
Troy, MI
(248) 680-6200


Syvetril Perryman
Media Relations Supervisor
Westlake Village, CA
(805) 418-8103


Andrew Teachout
Media Relations Specialist
Troy, MI
(248) 680-6200

 

Press Release
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Contact:
John Tews
(248) 312-4119
Anne Szczesny
(248) 842-7641
 
J.D. Power and Associates Reports:
Despite Differences in Trading Behavior among Self-Directed Investors,
Convenience is the Most Important Driver of Satisfaction among Each Type of Investor

Scottrade Ranks Highest in Self-Directed Investor Satisfaction

WESTLAKE VILLAGE, Calif.: 28 October 2008 — Convenience is the most important factor driving satisfaction among self-directed investors regardless of the trading channel used, according to the J.D. Power and Associates 2008 Self-Directed Investor Satisfaction StudySM released today.

The study measures customer satisfaction with investment firms based on performance in six factors: convenience; account offerings; trading charges and fees; information resources; trade execution; and customer service. Redesigned in 2008, the Self-Directed Investor Satisfaction Study (formerly known as the Online Investor Satisfaction Study) has been expanded to include investors who make their own investment decisions, rather than relying on advice from an investment advisor. 

Within the self-directed investment segment, the study classifies investors into four types:
  • Online Investors: These investors trade exclusively online and are more aggressive in their investments, compared with other types of investors.  Online investors interact with their firm primarily via the firm’s Web site and make trades frequently—a median of five trades each year.
  • Offline Investors: These investors trade exclusively via telephone or in person at a branch and are conservative with their investments.  Offline investors utilize the branch office almost exclusively and make occasional trades—a median of two trades each year.
  • Multi-Channel Investors: These investors trade both online and offline and are the most active traders among the various types of investors, making a median of eight trades each year.  Multi-channel investors have the most diverse portfolios and require diverse products and service offerings to serve their needs.
  • Non-Active Investors: These investors have not executed any trades within the past 12 months.  As is typical of “buy and hold” types of investors, there these investors perform very little day-to-day trading activity. 
The study finds that perceptions of convenience vary by trading segment. Investors who trade online view their investment firm’s Web site as the most critical interaction channel, while investors who primarily trade via the phone or in person utilize the branch office for most of their activities. 

“The nature of self-directed investing is such that investors have the ability to trade when they want and how they want, so it’s not unexpected that convenience is the most important aspect of overall satisfaction among all styles of self-directed investors,” said David Lo, director of investment services at J.D. Power and Associates. “However, recognizing and understanding the differences in trading behaviors among self-directed investors can lead to more satisfying investing experiences if firms tailor their offerings to a customer’s investment style.”

Scottrade ranks highest in self-directed investor satisfaction with a score of 787 on a 1,000-point scale, performing particularly well in trading execution and trading charges and fees. ShareBuilder/ING Direct (775) and Charles Schwab (773) follow Scottrade in the rankings.

The study also finds that highly committed investors are more than twice as likely to recommend their firm as are investors with lower levels of commitment.

“Achieving high commitment levels among self-directed investors can be especially beneficial to a firm’s bottom line,” said Lo. “Not only are highly committed investors more loyal, but they allocate a greater share of their wallet to their investment firm in terms of proportion of their assets, banking deposits and multiple product usage.”

The 2008 Self-Directed Investor Satisfaction Study is based on responses from 5,796 investors who make more than half of their investment decisions without the counsel of an investment adviser. The study was fielded between August and September 2008.

For more information, read an article or view self-directed investor firm ratings at JDPower.com.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on boat ratings, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE:  MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com/.
 

Media Relations Contacts:

John Tews
J.D. Power and Associates
Director, Media Relations
5435 Corporate Drive, Suite 300
Troy , MI 48098
USA
(248) 312-4119
john.tews@jdpa.com

Anne Szczesny
Brandware Public Relations
Atlanta , GA
(248) 842-7641
aszczesny@brandwarepr.com

 

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

 

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2008 Self-Directed Investor Satisfaction Study

The 2008 Self-Directed Investor Satisfaction Study measures customer satisfaction with investment firms based on performance in six factors: convenience; account offerings; trading charges and fees; information resources; trade execution; and customer service. Redesigned in 2008, the Self-Directed Investor Satisfaction Study (formerly known as the Online Investor Satisfaction Study) has been expanded to include investors who make their own investment decisions, rather than relying on advice from an investment advisor.

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