E*Trade enters DIY super market
E*Trade Australia has formed an alliance with SuperEasy to offer investors a do-it-yourself superannuation fund online.
The alliance means investors can set up and administer their own self-managed super funds (SMSFs) for a fixed cost. In addition, they will have access to E*Trade Australia's real-time reporting, research tools and information.
The self-managed super funds sector is the fastest growing in the Australian superannuation market. According to the Australian Prudential Regulation Authority (APRA) figures, about 1700 funds start up each month. There is currently $48 billion tied up in SMSFs while Rice Kachor research suggests the figure could rise to $203 billion by 2006.
E*Trade chief executive Michael Deleray says the deal is not only a strategic revenue stream for the group, but also an innovative solution that will broaden offerings to E*Trade's customers, many of whom already have DIY funds.
Investors can set up a DIY super fund for $395. When they open an E*Trade Australia super account, they will also receive a further $50 off the set-up cost of the fund.
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