Schwab enters Australian market
Charles Schwab has had its eye on Australia’s financial market place for the past two years, it was revealed yesterday.
The US-based online broking giant, who yesterday rolled out its Australian services and opened its first service centre in Sydney, says interest in Australia began in 1998.
Schwab Australia chief executive Linda Sarinske says the choice of Australia by the group was based on the sophistication of Australia's investors.
"We've had our eye on the Australian market since 1998. We based it upon where we think the most savvy investors are coming from," she says.
"We have found that Australian investors are very quick adaptors of the technology, as well as there is an interest in financial markets and a willingness to learn."
Sarinske says the current competition in the online broking sector is immense. However, despite fellow online brokers, E*Trade, TD Waterhouse and Comsec breathing heavily on Schwab, the group will hold its ground.
"There is a lot of competition at the moment, but we're not planning a pricing war. We're not a cheap quick transaction service. Schwab Australia is in for the long haul," she says.
Sarinske says 54 per cent of Australians who invest in shares, however, a large percentage of these investors do not understand their investments. She says only 12 per cent of Australian investors understand the nature of their investments.
It is this 12 per cent that Schwab Australia hopes to target. Along with the opening of the group's investment centre, a place where investors can gain face to face advice from qualified trading experts, Schwab has also unveiled its Web site.
The site, www.schwab.com.au provides access to equities and derivatives trading services. Through the site, customers have easy access to the group's $30 trades 24 hours a day.
Other products include combined banking and trading accounts SchwabOne and Schwab Classic.
Schwab Australia has 150 employees and was established in February this year as a 50/50 joint venture between Charles Schwab and ecorp Limited. Charles Schwab Australia has more than A$600 million in assets under management.
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