Best and Worst of Online Brokerage Web Sites

User Centric, Inc., a global user experience research and design firm based in Chicago, recently evaluated the user experience of online brokerage Web sites from the vantage point of the new investor, someone who may be shopping around for an online brokerage company.  After reviewing eight of the top online investing web sites, Fidelity Investments was rated as providing the best user experience for the new investor, while E*TRADE was rated as providing the worst user experience.  Guidelines for online brokerage web sites were developed to maximize the new investor’s user experience and to ultimately attract and retain new customers.

Users’ expectations for transaction Web sites have evolved to expect these sites to also be sources for learning and researching.  As such, companies are migrating away from a purely transaction-based Web site to a Web site that now includes some level of knowledge sharing, commonly implemented as a “Knowledge Center” or “Resource Center”.  This type of resource can help develop customer trust and loyalty that can translate to increased transactions.

User Centric’s evaluation concluded that the new investor’s user experience is directly related to the amount of information and tools companies provide up front, without having to register and create an account.  The amount of information and tools varied widely from site to site, creating a frustrating user experience on some sites. 

The following best practices should be considered when designing online brokerage sites for new investors to maximize their users’ experiences:

1. Ditch the purely transaction-based model - User expectations have evolved from using sites to simply conduct transactions to now expecting transaction sites to be a source of learning.  Provide “Knowledge Centers” where users can continue to learn about investing, regardless of their investment savvy.
2. Up-front information builds trust and confidence - Users are less likely to provide sensitive personal information—like Social Security Numbers—when they know little about a site’s offerings.  Providing informational content and tools up-front builds a user’s trust and confidence. 
3. Trust and confidence lead to transactions - If users come to rely on a site for information, they are more likely to use that same site to complete transactions.  Sites like E*TRADE require users to take a “leap of faith” before registering, while sites like Fidelity Investments rely on the quality of information and content as driving conversion.
4. Multiple methods of information delivery is key - Presenting information across different mediums will appeal to the widest range of users.  Some users may prefer reading information directly on a Web page, while others may prefer to watch multimedia, while still others may prefer to download Podcasts.\
5. Know your audience - Targeting specific user demographics may be clearly strategic, such as Sam Waterston who appears on TD Ameritrade’s home page; however, remember that targeting specific user demographics may also appeal less to other demographics.
6. Don’t forget about usability! – Throughout the evaluation, numerous usability issues, including important content contained below the page fold, poor affordance of links and buttons, and inconsistent terminology, were uncovered.  Remember that the quality of the user’s interaction with a Web site is as critical to user registration and transactions as the content and tools provided to users.

For User Centric’s full evaluation, including web sites evaluated and an expanded article, download below: