Analysis of Online Equity Brokerages in Pakistan

Abstract

Companies are excited about reaching more consumers at low operating costs. The Internet connects huge number of users and is the fastest growing worldwide communication resource. It provides a standard for information exchange and transcends normal communication media. The attractiveness of doing business on the Internet stems from its rapid growth, global reach, and superior communications capabilities. As a market it provides a pool of techno-savvy consumers that are well educated. The Internet is a world wide network; therefore financial companies can globalize their companies in order to deal with portability issues in other International financial markets. Hardly 5-6 brokers in Pakistan are offering internet trading facilities. Few giant brokers such as Jahngeir Siddiqi and Arif Habib are also planning to go online. In foreign countries online trading includes both trading and consultancy, where as, Pakistani E-brokers online provides online trading, which includes market watch, research portals, weekly reviews, morning briefings, margin trading, pocket watch, stop loss orders and limit orders. Financial Markets are changing dynamically and becoming an intense environment that faces a strategic challenge of "e brokerage". Changing the market situation and opening the door for new competitors to enter the industry. But competitive advantage can be achieved by possessing technology, access to the clientele or knowledge of the clientele. The conceivable new competitors that meet these requirements are, for example, portals or especially financial portals that can attract cabernets with additional services and thus generate clients. This research report plunges into both exploratory and descriptive study. Information contain in this report are qualitative collected through observation and interviews with brokers, investment bankers and I.T consultants . And on the other hand reports major segment consist of recommendations and upcoming IT applications applicable in financial markets to help brokers realize the potential of online trading market.