Investing
Merrill Lynch and Wells Fargo Last Again in Broker Survey
Published:
Last Updated:
J.D. Power fielded its 14th Self-Directed Investor Satisfaction Study in January and February of this year and released the results Thursday morning. The survey included more than 3,700 investors who make all their personal investment decisions without the counsel of a personal investment adviser. The average index score of the 10 firms included in the study was 763 out of a possible total of 1,000 points, and the average score was flat with the 2014 total.
While almost two-thirds of self-directed investors are happy with broker accounts that include just low-cost trades, fast and reliable trade execution, and access to market research, more than a third of investors are also looking for guidance from their brokers. Companies that provide that guidance get higher satisfaction scores from self-directed investors, according to a recent survey of investors.
ALSO READ: 4 Stocks to Own in Case the Stock Market Crashes
The top scoring firm this year is Charles Schwab & Co. Inc. (NYSE: SCHW) with a score of 801 out of 1,000 possible points. Schwab displaced Scottrade, which led the ranking last year with a score of 813 but dropped to fifth place in 2015 with a score of 783.
Vanguard ranked second again this year with a score of 794 (last year’s score was 805). Other brokerages that scored above the average were Fidelity Investments (791), T. Rowe Price Group Inc. (NASDAQ: TROW) (784), Scottrade, TD Ameritrade Holding Corp. (NYSE: AMTD) (783) and E*Trade Financial Corp. (NASDAQ: ETFC) (779).
Sharebuild from Capital One Finance Corp. (NYSE: COF) scored 756, just below the industry average.
J.D. Power’s director of the wealth management practice said:
Self-directed investors may not be looking to delegate managing their money to an advisor, but they do value access to guidance when they are ready for it, whether that means a financial planning tool they can use on their tablet, a webinar about saving for their children’s education or an actual human being who serves as a sounding board for ideas by phone or in a local branch. Firms need to make sure that their clients understand what’s available to them and how the overall value proposition relates to what they pay. In most cases, clients are getting a lot more value from their firm than just the ability to trade.
J.D. Power noted that the companies that maintain a guidance-based relationship with their clients achieve a sharply higher satisfaction score (828) than firms that do not foster such a relationship (656).
ALSO READ: 10 Stocks to Own for the Next Decade
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.