Private investors prefer traditional brokers says survey

Private investors prefer traditional brokers says survey

UK private investors still prefer personal brokerage services over execution-only Internet delivery according to a survey conducted by TCA Synergo.

Half of all the respondents to TCA's Tarot2000 Index, carried out in November 2000, plump for broker consultation as their favoured method of buying shares, and of those who regularly invest in shares or unit trusts, 39 per cent opt for the peace of mind and personal touch of dealing face-to-face.

Simon Tizard, commercial development director at TCA Synergo comments: "With so many private investors having had their fingers burnt back in March 2000, and the resulting lack of confidence in today's bear market, it is perhaps unsurprising that people are turning to tried and trusted sources for advice. This trend has resulted in what can only be described as a renaissance for traditional brokers."

According to the survey, mobile share-trading - using WAP technology - has failed to make significant inroads, with not a single respondent using a mobile device to purchase their shares. Over-enthusiastic marketing, high costs, and restricted services are cited as limiting factors hampering WAP uptake.

The survey holds out more hope for proponents of digital TV, with a quarter of respondents citing the 'in your living room' aspect as a major benefit of interactive television. However, only 15% think digital TV will be able to provide the necessary levels of security to conduct trades.

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