Ameritrade To Tap Into High Net Worth Market With Broker, Asset Allocation Services

Philip Morton, InvestorsOffshore.com

13 March 2001

At a time when online brokerages are experiencing a downturn in their business levels, US broking giant Ameritrade is to launch a new programme to attract high-net-worth individuals. Ameritrade Plus will offer select clients the services of a broker and asset allocation advice, and according to a spokeswoman, it is designed to bring in the "less active traders who have higher than average assets."

The company's vice president of marketing, Ann Nelson, said that Ameritrade Plus is part of a strategy to divide up clients and extend its brand and product range. The firm sees access to brokers as a valuable tool for investors, who can have their investment decisions validated by an expert. The asset allocation package will include Web-based tools which individuals can access on the firm's website. The minimum investment for Ameritrade Plus, and the pricing, has not yet been determined, and it has not yet been revealed when the new services will be available.

Currently Ameritrade is all for branching out in different directions, no doubt to keep investors interested. As one of the major American brokerages, Ameritrade is in a strong position, but is not resting on its laurels and needs to keep up with the competition. Through recently-acquired Tradecast Securities, it plans to offer services to a different group - active traders seeking to use a direct access platfom.

The high net worth investor has not been a core segment for Ameritrade, but it is hoped that the new asset allocation and advisory service will retain the affluent clients that it does have. This is particularly important as competitors such as Fidelity, Charles Schwab and E*Trade also have attractive services available to the high net worth individual.

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