J.D. Power and Associates Reports: Fidelity Ranks Highest in Investor Satisfaction With Online Trading Services; Popularity of Online Trading Continues to Increase

Business Wire, August 14, 2000

Business Editors

AGOURA HILLS, Calif.--(BUSINESS WIRE)--Aug. 14, 2000

With competition intensifying in the online trading market, Fidelity Brokerage Services ranks highest in the J.D. Power and Associates 2000 Semiannual Online Trading Investor Satisfaction Study(SM) released today.

Fidelity shows particular strength in the area of customer service. The firm is followed closely by Merrill Lynch and American Express, which tie for second. Following the tie for second, in rank order, are Datek Online, DLJdirect and Schwab, respectively.

The study shows that the number of households conducting online trades has increased by 22 percent in the last six months. Second, the number of investors who use multiple online trading services has more than doubled during this same period -- this driven largely by those who report conducting 36 or more trades in a six-month period.

Another important finding is that customer service continues to have the most significant impact on online traders' overall satisfaction with their online trading service. Additionally, the impact of customer service increases among more active traders.

For example, customer service accounts for 26 percent of overall online trading satisfaction, while it accounts for 42 percent of the satisfaction of those who conduct 60 or more online trades in a six-month period. The average online trader reports conducting 18 online trades in a six-month period.

"In highly competitive markets, customers put a premium on service," said Nancy Salk, research director at J.D. Power and Associates. "It is no surprise that the three firms at the top of the ranking are noted for their customer service and support. With greater product and service usage, customers demand greater support."

The study further shows that while respondents reported fewer serious problems than in 1999, those who did report a problem indicated greater dissatisfaction with the problem resolution. The most frequently reported problems were related to technology.

The six drivers that comprise investor satisfaction with online trading services and their corresponding impact are customer service, 26 percent; information/education, 19 percent; integrity/reputation, 19 percent; processing, 17 percent; portfolio management, 12 percent; and fees/commissions, 7 percent.

Conducted independently by J.D. Power and Associates, the 2000 Online Trading Customer Satisfaction Study is based on responses from a national sample of 2,079 online investors. The study is conducted semiannually and is designed to provide online brokerage services with actionable information to better understand the expectations, needs and desires of today's online traders.

With headquarters in Agoura Hills, J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on actual customer responses from millions of consumers annually.

J.D. Power and Associates can be accessed through the Internet at www.jdpa.com. Media e-mail contact is michael.greywitt@jdpa.com.

Note: This news release is provided for editorial use only. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates survey results without the express prior written consent of J.D. Power and Associates.

                      J.D. Power and Associates
                    2000 Semiannual Online Trading
                   Investor Satisfaction Study(SM)

                  0                        100        105       110
Fidelity ....................................................... 109
Merrill Lynch  ............................................... 108
American Express ............................................. 108
Datek Online ............................................... 107
DLJdirect ................................................ 106
Schwab .............................................. 104
Ameritrade ...................................... 102
Scottrade ....................................... 102
T. Rowe Price ................................. 101
Morgan Stanley/
 Dean Witter ................................ 100
Industry average ............................ 100

Finishing below industry average, in alphabetical order, are: Dreyfus,
E*Trade, SURETRADE and Waterhouse.

Source: J.D. Power and Associates 2000 Semiannual Online Trading
Investor Satisfaction Study(SM)

Charts and graphs extracted from this news release must be accompanied
by a statement identifying J.D. Power and Associates as the publisher
and the J.D. Power and Associates 2000 Semiannual Online Trading
Investor Satisfaction Study(SM) as the source. No advertising or other
promotional use can be made of the information in this release or J.D.
Power and Associates survey results without the express prior written
consent of J.D. Power and Associates.