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Barclays takes on Schwab
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March 25, 1999: 9:44 a.m. ET
U.K.'s largest retail broker launches online trading service
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LONDON (CNNfn) - Barclays, the U.K.'s largest retail brokerage, launched its online, real-time Internet dealing service Thursday, and boasted it would take the country's number one spot from market leader Charles Schwab within 12 months.
Tom Sheridan, managing director of Barclays Stockbrokers, predicted the new service will have 10,000 users by the first quarter of next year.
He said the service will quickly overtake the country's leading online trading system, offered by U.S. broker Charles Schwab, which currently has around 9,000 Internet users in the U.K. "Within a year's time we will be at the front in terms of volumes," Sheridan told CNNfn.com.
Barclays has around 1 million retail clients in total, averaging between 4,000-5,000 pounds per deal. Sheridan said the value of online deals will "perhaps be slightly higher."
He claimed the new service has distinct advantages over its rivals, as it provides the lowest, real-time prices and confirms the dealing price instantly.
Barclays said it didn't rush to launch an online service to compete with Charles Schwab, which went live in the U.K. last year, because it wanted to ensure it had the right technology.
It took 18 months to design the search engine, Price Improver, which is designed to scan "several market makers" to get the best price. "This is something the other guys don't do," Sheridan claimed.
Barclays said an independent audit of Price Improver found it got a better price than the Stock Exchange on more than 50 percent of deals.
In the first phase, the online service will be open only to users with share certificates, but it will be extended to nominee accounts by October. In the U.K., two-thirds of shareholders still hold certificates and Sheridan said research shows they "do not want to give them up."
Online registration is free and clients can start using the service immediately. The minimum charge is 17.50 pounds ($28.50) per transaction. 
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Barclays
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