2. Comparative Analysis on On-line Brokerage Business

2-1. e.Schwab (www.eschwab.com)

e.Schwab is Charles Schwab is an all-electronic trading subsidiary of Charles SCHWAB & CO. . The company proposes a 24-hour discount automated brokerage service. Stocks, funds, and other securities are traded for a flat fee. e.Schwab brings together the latest in interactive computer technology and information delivery systems to meet the specialized needs of on-line investors. It also manages customer trading and account services on-line while enjoying the security and reliability that comes with trading on one of the leading electronic brokers' site.

Through the Web or e.Schwab's software, e.Schwab gives investment on-line services Ð including real-time quotes, news and research, while trading at Schwab's relatively low commission rates.

Price

Comparing to commission fee of traditional brokerage companies, e.Schwab offers deep-discount commission schedules in the brokerage industry. However, its fee is not comparable to the fee of E*TRADE or eBroker.

• $29.95 for stock trades up to 1,000 shares, and 3 cents a share for trades over 1,000 shares.

• Save 20% with Web Trading Place orders or check customers1 balances, positions and order status 24 hours a day. Plus get the latest market news and free unlimited delayed quotes & historical charts.

• Save 10% when customer trade with StreetSmart or Telebroker StreetSmart software gives customer complete securities trading capabilities...plus Wall Street news and research.

Telebroker offers 24-hour automated access to Schwab account. Get quotes, place trades and check account information from any touch-tone phone.

Services

Unlike traditional brokers, on-line brokerage companies support a minimal staff. Then, generally, customer services are streamlined. However, among on-line brokerage companies, e.Schwab carries relatively various kinds of customer services.

• Personal service is available at over 200 e.Schwab offices nationwide.

• Automatic Investing Services

1) StockBuilderTM Dividend Reinvestment (Compound returns by automatically reinvesting stock dividends)

2) Schwab MoneyLink (Keep Schwab account growing with automatic deposits)

3) Schwab Automatic Investment Plan (Build mutual fund investments easily and automatically)

• Planning and Information Services

Over 200 offices nationwide provide face-to-face help and personal service.

1) Schwab AdvisorSourceTM (A referral service for investors who want professional money management and have $100,000 or more to invest)

2) Services for Stock Investors (Make more-informed decisions with the latest market intelligence)

3) Services for Mutual Fund Investors (A wealth of information on over 1,100 mutual funds)

4) Services for Fixed Income Investors (Services to select a bond; reports to keep informed), etc.

• Help Managing Investments Service

Services that make it easier to track the performance of investments.

1) Mutual Fund Average Cost-Basis Report (calculate the taxable gains or losses on certain mutual fund redemptions)

2) Clear Easy-to-Read Statements

Security and Protection

1) Web security

e.Schwab provides with a Web trading environment that is private and secure. That's why e.Schwab uses state-of-the-art security technologies to ensure that the transmitted data is secure.

For any trade or provide personal information (such as account number, password, orders, etc.), e.Schwab encrypts it using Secure Socket Layer (SSL) technology. To support this technology, customers need to have an SSL-capable browser / Netscape Navigator 2.0 and higher, Microsoft's Internet Explorer 3.0 and higher, and AOL 3.0 for Windows.

2) Account Protection

Charles Schwab & Co., Inc. provides one of the highest levels of asset protection in the brokerage industry Ð up to $75 million of customer account protection for each account Ð at additional cost. While no one can protect against losses due to market fluctuations, the Securities Investor Protection Corporation (SIPC) provides up to $500,000 with a limit of $100,000 for claims in cash to protect assets such as stocks, bonds, mutual funds, notes, debentures, warrants, rights, options, money market funds and certificates of deposit in accounts that customer hold "in a separate capacity" (for example, as custodian, joint tenant or sole owner). In addition, Aetna Casualty & Surety Company of America provides up to $74.5 million of protection for securities only.

Payment

In order to open an account customers should initial deposit(minimum deposit is $5,000 for Investment, Custodial or Trust accounts. $2,000 for IRAs. Schwab MoneyLink Build assets in Schwab account automatically. Add to the investment cash in Schwab account without waiting for payments, bothering to write checks, or visiting bank or savings and loan. The Schwab MoneyLink Transfer Service® safely and accurately transfers funds into Schwab account from regular paycheck, government check or account at another financial institution.