15.963 Electronic Commerce and Marketing

Internet business can propose relatively low price services and products by circumvending intermediates and saving costs. That is one of the most significant advantages of the Internet businesses. Among Internet businesses which utilize such a strength, we focus on the brokerage business on the Web.

In this project, we analyze lately trends of this business from the view of the market size, market growth rate, and competitiveness, exemplifying concrete cases, such as the E*TRADE, e.Schwab, and eBroker. Then, we outline the future development of this business.

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1. Analysis of The Brokerage Industry and Electronic Trade

1-1. Characteristics of the On-line Brokerage Business

(Table 1: Cost Structure of Brokers)

(Table 2: On-line vs. Full Service Brokerage Users)

(Figure 1: Internet Brokerage Trade Growth)

2. Comparative Analysis on On-line Brokerage Business

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

2-2. E*TRADE(www.etrade.com)

2-3. eBroker (www.ebroker.com)

(Table 3: Commission Fee of On-line Brokers)

3. Conclusion