Till date, most brokerage firms have been only eyeing to get your investments whether they belong to mutual funds, stocks, options or IRA’s. However the 2007-09 Recession has brought a lot of permanent changes in American Economy. The savings rate of American consumer has risen to 4.4%. This is almost double the number that was there 2 years back. It has also made the American consumer to move on a path of rapid de-leveraging.
Why do discount brokerage firms prefer savings products?
All these changes had to play their role in the discount brokerage firms do business. The results can be seen by the introduction of large number of savings products like money market accounts, CD’s by discount brokerage firms like E-trade. These help the brokerage firms in 3 ways:
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Overall, the analyst at comparebroker is of the opinion that this is a good thing for American consumers since it brings choice competition in this market. People now do not have to rely on big banks or their small credit unions for savings. They can actually go to brokerage accounts for their savings needs to. Open E-trade account today to know how.
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