On line Trading Development in Italy. A Comparison Between the Main Net Stock Brokers

On line trading has arrived, also in Italy, at a salient phase, even if with a notable delay in comparison with other countries. In this article, we will describe the progress of this service from the opening, when Fineco and Directa pionereed the market in this way, up to our days, with particular reference to the comparison among the services offered by the numerous Italian banks and brokers currently working in the net (Connect, IMIWeb Trader, Caribanking, BG Investire, InBors@, Twice Trade, We@bank, etc.). After having visualized the actual development of the Italian on line brokers starting from the distinction between “Pure Internet Players” and “Legacy Businesses entering the Web”[1], we will also try to estimate their growth in these years. Moreover, we will direct our attention, in particular way, on the number of new “non banking competitors” trying to disintermediate the Italian banks in Internet with business models and strategies evolving in a rapid way. In order to provide a clear point of the situation, it is our intention to create a framework for the most important on line operators underlining the differences between number and typology of customers, the markets in which it is possible to operate and above all the number, the type and the quality of accessorial services like financial news, historical data, charts, newsletters, typology of bonds and shares offered, kind of commissions applied, the possible presence of a monthly rent to agree the services, the approach to the security problems related to technology-based services (WAP and GPRS) [2]. In conclusion, the aim of this paper is to provide an overview of the Italian on line trading market - which is still “cost based” (with the progressive reduction of the commissions) but shifting towards the offer of “value based” services - giving the online investor a way to find the right Internet broker for his/her specific needs through “cross-border” broker comparisons.