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2 big brokers go to Net
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February 15, 1999: 8:08 a.m. ET
Merrill, Paine Webber set to offer online trading to some customers
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NEW YORK (CNNfn) - Two of the nation's biggest brokers - Merrill Lynch & Co. and Paine Webber - are set to offer online trading to some customers, according to published reports.
Merrill, the nation's biggest brokerage, and No. 4 Paine Webber, have apparently been reluctant to offer online trading because the firms are worried about alienating their brokers, who rely on commissions from traditional trades.
Online commissions go as low as $5 a trade, well below the lowest rates charged by discount brokers. The nation's biggest discount broker, Charles Schwab (SCH), moved aggressively to the Internet last year and has become the leader in online trading.
The moves come as more and more people move to trade online. Industry experts say 10 million brokerage accounts will be able to trade on the Internet by year-end, nearly double the number now.
It also comes as regulators wrestle with how, or whether, to limit online trading after a sharp rise in the number of complaints last year.
According to the reports, Merrill plans to offer Internet trading to 55,000 customers, or about 1 percent of its account holders, starting next month. Merrill customers currently can track their portfolios and transfer funds between Merrill accounts online but cannot trade there.
Paine Webber also plans to offer a small group of customers the ability to trade online starting in the second quarter, according to USA Today.
Officials for the brokers were unavailable to comment.
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