Barron's March 12, 2001

Survivors on the Online Island
The harsh market climate makes Web brokers work harder for you.
By Theresa W. Carey

Survivor describes not only a hit television show but what online investors and brokers have been through in the past year. As the FINRAaq has been sliced by more than half, the breakneck growth of online trading has gone into reverse. But nobody's been forced to eat rats. Indeed, the survivors have benefited from their harsh experience of the last 12 months. Our sixth annual survey of online brokers finds continued incremental improvement in the four occupying the top tier, a marked bunching of many brokers just below the very best, and respectable performance even among most of the also-rans. The competition clearly has gotten fiercer with the slump in online transactions -- from just under a million per day in the second quarter of last year, to 850,000 per day in the third quarter, with only a small recovery to a 900,000 daily average in the final three months of 2000, probably because of tax-loss selling -- according to a report by J.P. Morgan Securities.

New online accounts continued to grow last year, albeit at a more moderate 53% rate, to 19.3 million, down from 1999's heady 73% increase. But the average account was less active, with an average of 2.9 trades per quarter in the final three months of 2000, down from five per quarter a year earlier. And poorer as well; the average online account was down to $49,000 in the fourth quarter from $70,200 a year earlier.

In response, brokers are offering lures, such as free trades, airline miles or cash rebates, to attract new customers. More substantively, most have tried to improve their infrastructure as well as the Websites themselves. A continuing area that needs improvement, however, is portfolio analysis and tax accounting. Too many online brokers rely on offline means of analyzing a portfolio -- exporting the data to a personal finance program or spreadsheet -- and sometimes requiring customers to perform data-entry chores, rather than transferring the information directly, even though they have the numbers available.

But the brokers apparently have heard the hue and cry from Barron's readers who called for better customer support. Over the past year, we've asked readers to comment about their online brokerage experience and to answer specific questions to help guide us in our reviewing efforts. Our thanks to the hundreds of respondents who helped us hone our rating system.

We've rated 23 Web-based brokers, including the top 15 in terms of trading volume, plus another eight of interest to Barron's readers. We're well aware that there are about three times as many online brokers out there. But, according to J.P. Morgan's data, the top 10 accounted for 95% of assets and 90% of the trades online. (We'll also look at direct-access brokers at a later date.)

We assumed typical Barron's readers (if there are such persons) could avail themselves of benefits for high account-balance holders -- over $100,000 in assets -- and make three round-trip trades per month. We made significant changes to our rating system, evaluating the brokers' offerings and performance in six areas, assigning a point value of 0 (low) to 5 (high) in each category. We then weighted the results according to the presumed importance to investors, adding to two the measures, and halving another.

The best possible rating Barron's could bestow is Five Stars -- which we have yet to award. Four brokers did cop Survivor's equivalent of a $1 million prize -- a Four-Star Rating. They are CSFBdirect, the recently renamed DLJ Direct, which barely edged out last year's winner, National Discount Brokers; industry leader Charles Schwab, which has moved up in this year's standings; and lesser-known newcomer, J.P. Morgan Online.

Ten brokers, a Barron's record, earned an estimable 3 1/2 Stars: Wall Street Electronica, Scottrade, Morgan Stanley Dean Witter, TD Waterhouse, Merrill Lynch, E*Trade, Fidelity, Quick & Reilly, A.B. Watley's "Watley Trader" and Mr. Stock. Each has strengths that will appeal to knowledgeable investors, but also a drawback or two that drop it down a notch -- and those minuses may not matter to you. The rest of the field was more bunched together this year; even the bottom-ranked broker got 2 1/2 Stars. A year ago, most of the surveyed brokers got three stars or less, and one broker earned a lowly single star.

What would it take to get the so-far unobtainable Five Stars? For starters, clearly written reports updated in real-time, plus price improvement on limit orders. Many readers wrote in to object to payment for order flow, so our rating system this year penalizes brokers who accept such payments. Proprietary research, well-organized links to third-party research, and great customer service also would be musts.

We looked for a streamlined order entry process, minimizing (or eliminating) the number of verification screens by utilizing field-by-field checking during data entry, while maximizing the amount of data available at the time of the trade. A real-time quote, presented before the order is entered, is essential.

Drop-down list boxes, or links to trading screens from a positions report or a research window, eliminating the need to enter ticker symbols, are a major plus. For example, if you select "Sell," there should be a drop-down box with the ticker symbols of issues in your portfolio, as well as the number of shares currently held, to avoid data-entry errors and inadvertent short sales.

We'd like to see an easy-to-read verification screen that is more than an echo of the order entry screen; that spells out the name of the security being traded, and shows the total value of the trade, including commission charges.

Final requests: an instant link to the status of the order, or a pop-up confirmation screen, followed by real-time updating of the trader's portfolio, plus portfolio analysis reports, with links to news and research, as well as transaction history going back at least 90 days. Readers also have emphasized the importance of tracking the tax consequences of each trade.

We ranked the brokers in six key areas, awarding or subtracting points in numerous sub-categories: Trade Execution Process: Reader feedback inspired us to focus on the process of placing and confirming trades, which can't be ascertained by using a demo. We broke the points awarded down into six sub-categories:

Trade Execution Process: Reader feedback inspired us to focus on the process of placing and confirming trades, which can't be ascertained by using a demo. We broke the points awarded down into six sub-categories:

A real-time quote on the trading screen earns one point. Partial credit was given to brokers that display the real-time quote and then force a move to the trading screen.

The quality of the trading screen itself was worth two points. A well-organized screen that helps the investor avoid data entry errors, and locates potential problems before they result in expensive effects, is key.

Brokers offering price improvement for limit orders received 1/2 point. Brokers that accept payment for order flow lose 1/2 point.

A pre-filled order entry screen was worth up to one point. We looked for the ability to click on a trading link while viewing a positions report, and have the order entry screen set up for the investor. The full point went to brokers who filled in the number of shares available in the investor's account when placing a Sell order.

Easily accessible order status reports and pop-up confirmations were worth up to 1/2 point.

We executed equity trades during market hours, performing a market buy and a limit sale of a NASDaq stock. Following the market buy, we evaluated the execution and portfolio reports. After the limit sell, we examined the open order reports and looked at ways for the trader to follow the progress of the order.

We also examined the mutual fund and options entry screens, though we did not place orders there. A "5" in this category means the order entry and execution process flowed easily from one step to the next, with real-time information available when needed. The availability of price improvement strategies and the absence of payment for order flow are necessary to attain a "5." We added 25% to this score to emphasize its importance to Barron's readers.

Ease of Use: How easy was it to navigate around the site? Does the layout of the site make sense and minimize the number of mouse clicks it can take to get from one place to another? Sites that keep you just a mouse click or two away from any other area get higher rankings than those that require navigation through an online obstacle course. A "5" in this category means the site was easy to use, well designed, and doesn't bog down when moving from screen to screen.

Range of Offerings: In past years, we've combined this category with others, but readers have prompted us to give it its own place in the sun again. We awarded points for equities that can be traded online, with partial points given for those that can be traded with the broker, but only offline.

Points were given for the ability to trade stocks long and short, mutual funds, bonds, simple options and complex options. A fraction of a point was awarded for other online investing opportunities, including CDs and banking services. A "5" in this category means you can execute all of these transactions online.

Research Amenities: This category measures the quality and accessibility of proprietary research, third-party research, quotes and charting. We assigned up to one point for proprietary research available only to account holders, also determining whether additional goodies are given to those with large accounts. Up to two points were awarded, depending on the third-party research available and how well it was integrated into the brokerage's site.

Quotes and charts earned up to two points also, with the higher rating going to brokers with access to real-time streaming quotes, powerful charting capabilities, and Level II quote accessibility. The brokers who received the highest points in this category gave exceptional research and quote services to high-account-balance holders.

Reports and Customer Access: This category measures the quality of portfolio analysis reporting (up to one point); the quality of tax reports available, including how far into the past transaction history is posted (up to 1 1/2 points); and the availability and quality of online and offline help (up to two points). Brokers received 1/2 point for having wireless trading access.

Online help includes live chat capability, frequently asked question files, and investor education. Offline help was assessed through the assistance of a group of friends, who made random calls to customer service asking relatively intelligent questions. (I've found that certain brokers tend to be extra nice to anyone who calls up claiming to be Theresa Carey.) We added 25% to the score in this category, emphasizing what Barron's readers want: How much am I worth, what are the tax consequences of my trades, and what can you do for me right now?

Costs: This year, we looked at commissions for stock and options trades, and margin interest rates. Higher points are assigned to lower costs. We looked at the cost of three round-trip stock trades, assuming one side of the trade was at market and one side was a limit order. Up to three points were awarded for stock commissions. We also looked at the cost of trading 10 options contracts, with one point going out in this category.

Last but not least, up to one point could be earned for lower margin interest rates on balances of $25,000 and $50,000. A "5" in this category could be earned by a broker with commissions of under $50 total for three round-trips, commissions of under $50 for 10 options contracts, and margin interest rates under 7.5%. We reduced the weight of costs in the overall ranking by 50% to reflect the importance of trade quality and service over price.

By just a hair, CSFBdirect (formerly DLJ Direct), which was on top of the heap in 1998 and 1999, returns to the top spot in 2001. Now owned by Credit Suisse First Boston following last year's acquisition, just the name, logo and colors have been changed. DLJ Direct account holders can still use their existing log-in IDs and passwords.

The easy-to-use Website gives customers access to all kinds of equities, and the research offered to high-end account holders is hard to beat. The main functional areas of the site are accessible from a menu represented by tab bars across the top, which opens up additional choices on the left side of the screen. You can trade on the Web, via touch-tone phone, using a wireless device, or by contacting a live broker for the same commission: $20 for market or limit orders.

CSFB's order entry pages haven't changed much in the last few years, but they have added the ability to view a real-time quote before placing an order. Executions are announced using the Alerts! feature, and on the order status page.

Customers with Windows PCs get access to CSFB's MarketSpeed software, which provides pop-up confirmation notices, streaming quotes, news, and improved charting. CSFB's lack of a Mac version, a phenomenon we've noted in the past with other direct access platforms, is a sore point with one Barron's reader, Blair Zajac.

Portfolio holdings can be viewed in real-time, though customers who don't qualify for Preferred (over $100,000), Select (over $1 million) or Active Investor (more than 48 trades per year) status dip into their quote bank to do so -- one of our main quibbles with the site. Perusing the amenities available to customers makes it clear that CSFB is looking for high rollers and is willing to spend to keep them. Account holders with less than $10,000 deposited, by contrast, don't have access to wireless trading, AssetMaster (debit card, money market sweep, etc.). A few goodies kick in when an account hits $100,000, but the best are reserved for those with over $1 million. Additional research is free, as are streaming quotes and a personal broker.

Reports detailing realized and unrealized gains and losses help investors keep tabs on portfolio performance, as well as the tax impact of trades. One helpful report is the Cash Flow summary, which estimates your projected income for the next six months from dividends, bond coupons and mutual fund distributions. Elite account holders can get additional research and discounts on commissions, but options traders might prefer a less expensive site.

Two brokers finish in a near-tie for second place. Charles Schwab's ranking comes as a surprise, given our past criticism of its labyrinthine Website with its less-than-stellar design and high commissions. The industry leader -- accounting for one out of five online trades in the latest quarter, according to J.P. Morgan -- Schwab obviously has been laboring away streamlining the site, making its wealth of services more easily accessible to account holders.

Schwab has also finally eliminated a major block to breaking into the highest tier in the Barron's rankings: overnight updating of account balances and performance reports. Trades are immediately reflected in Schwab position reports, and Schwab recently started providing real-time account balances as well. Portfolio performance reports, however, reflect the results of trades after an overnight update. High-account-balance holders get access to Schwab's Signature Services, which include additional research.

Schwab customers can trade a wide range of equities online, and futures trading is now available through a partnership with Lind-Waldock. When placing a trade of a stock held in your account, you can click on the "Trade" button from the positions report and get a pre-filled order entry screen. Active traders qualify for lower commissions, and access to Schwab's "Velocity" software.

Last year's champion, National Discount Brokers, still offers all the benefits that put it on top last year: information-packed trading screens, pop-up execution reports, real-time portfolio updates, and portfolio analysis reports that can keep the trader up to date on changes in asset values.

Investors sensitive to the tax impact of their trades will appreciate NDB's Tax Center and "Schedule D-efense," which allows them to download account history into an Excel spreadsheet, designed to make Schedule D tax calculations. NDB's "same side, same day" pricing permits multiple trades in a single stock on the same side (all buys or all sells) on a particular day for a single commission, plus $3.95 for additional trades. By contrast, several readers complained about other firms charging separate commissions when a large order is executed in multiple blocks.

Concierge customers at NDB (with over $1 million on account or 30 or more trades per month) get increased service, Level II quotes, additional research, and reduced margin rates, among other benefits. The firm recently added "NDB Speak," which lets your computer read you your account balances and other interesting information -- which you might want to forego if you trade in a not-so-private office. Another recent addition, RiskMetrics, gives indications about the volatility of your investments and of your overall portfolio.

What hurt NDB this year was the inability to trade bonds online (they're available offline only), and the relative clutter of the site itself. There's so much information available that it's often buried and difficult to find. Still, we like the ability to route an order through an electronic communications network, or ECN, and the way the trading screen is accessible from just about every spot on the site.

J.P. Morgan Online also earned Four Stars in its first appearance in this review. J.P. Morgan's Internet-based trading and advice service won't win over any Datek fans or day-trading junkies, but it might soothe high net-worth investors who want a combination of hand-holding and free rein when it comes to investment management. The site currently is in transition to version three from version two, which will combine services from the J.P. Morgan, Chase and Hambrecht & Quist, which have been merged under one roof in recent years. We got a sneak peek at the new offerings to be unveiled in a few weeks, and have based our score on the enhanced research abilities.

Morgan Online's excellent portfolio evaluator and tracking program can keep tabs on all your investments, no matter where they're held, via a Yodlee-powered account consolidation. The evaluator will give you an in-depth asset-allocation worksheet, including specific advice to rebalance your portfolio. The downside: Your accounts with financial institutions that are not linked to account aggregator Yodlee will have to be entered manually. Your J.P. Morgan-based transactions are automatically accounted for in the portfolio analysis. If any of your holdings, whether Morgan-based or elsewhere, are the subject of J.P. Morgan research, you'll be alerted to a report when you look at the portfolio screen.

You can even import your portfolio holdings into a calendar, which will display the dates of earnings announcements, stock splits, and other items of interest. The site includes a good employee stock option tracker that monitors tabs on the value of the options, and lets you set trading alerts as well. The mutual-fund screener is also excellent.

Morgan Online is not beating the drums to increase its client base through advertising and promotions. It has, however, changed its pricing structure, eliminating the annual fee of $2,500 but charging for some advice features and portfolio diagnostics. Stock trades are $30 each. The trading screens are easy to use, though they lack the ability to enter a trade from the portfolio view. Account holders can grant limited access to a financial planner, accountant or family member if they'd like to collaborate with other interested parties.

Nearly half of the brokers reviewed this year fell into the 3 1/2-Star category. Each has a particular strength, but also lacks one or two items that keep it out of the top tier. If you don't need everything in one place, or have a particular investing style, one of these brokers will serve you well.

If there was an award for "Broker Most Responsive to a Barron's Review," it would have to go to Wall Street Electronica. After having reviewed this site just a few weeks ago for Barron's Online ("Wall Street Electronica Adds Service to Tech Savvy," February 15), the broker already implemented a half-dozen changes based on our criticisms.


Wall Street offers three levels of service, depending on how much human assistance you'd like. Commissions for online orders are the same for each of the levels (fully automated, Valet or Full Service); having a human place an order for you invokes a $20 surcharge plus a per-share fee. One area where WallStreet*E stands out is options order entry. Spreads are automated; you can execute both parts of the transaction on the same screen. You can also trade naked puts and calls, and trade options on margin. Broker/dealers can license WallStreet*E's services and provide their customers with online brokerage access, and can also manage multiple accounts.

WallStreet*E is not trying to be the cheapest online broker; indeed, in some cases it's among the most expensive after per-share fees are tacked onto the base commission. But its built-in error checking during order entry is well done, as is its real-time buying power and margin debt calculations.

Scottrade lands into the 3 1/2 Star group thanks to its range of offerings online, and its low fee structure, and my ability to borrow a neighbor's account. (Scottrade declined to answer my requests for a test account.)

The broker recently added online bond trading to its mix of services, and its commission structure ($7 trades) and margin fees are among the lowest around. It's beefed up research offerings in the last year, but this isn't a one-stop shop for news and charting junkies.

Still, the Scottrade site is very easy to navigate, with the list of items (such as trading and research) arrayed along the top of the screen using the familiar folder-tab metaphor, offering quick access to what's available. The Active Streamer is a relatively new feature, pushing real-time quotes onto your screen. Scottrade also offers an extensive list of unit investment trusts.

For an additional $10, you can place trades with a live broker, and account holders are assigned a personal broker so they don't have to wait in a long phone queue when there are questions or concerns.

Morgan Stanley Dean Witter Online, next on the list, is one of the few that hasn't made many changes in the last year. It's added the ability to transfer money into and out of your account online, using eCheck Secure. The trading screens have actually regressed a bit; you can't get a real-time quote while entering your order. But the research reports are good, as are the industry analyses accessible by customers.

We like the municipal bond search capability, as well as the stock screener. Still, MSDW needs to pump up its offerings, including real-time portfolio and buying power reports, to stay even with the rest of the online tribe.

At TD Waterhouse, the goodies kick in for active customers. If you make 36 trades in a calendar quarter, you qualify for Select status, which brings you lower commissions, streaming quotes, and real-time portfolio reports. Research is on the light side, and portfolio-analysis reports need to be improved, but the service is easy to navigate. We like the ability to view monthly statements for the last three years. Waterhouse's planning sections, with specific recommendations for small business, college savings, retirement, and so on are well done.

Sheldon Cohen, a Barron's reader from Knoxville Tennessee, wrote to complain that a recent change in handling mailed-in funds results in an eight-day lag between the time the check leaves his house and the appearance of the money in his Waterhouse account. "Owing to the three-day rule, this means that if I want to cover a purchase I have to mail the check 4-5 days before the purchase, which precludes buying a stock on sudden weakness…I'm satisfied with their online service, but not their off-line infrastructure." Non-IRA accounts can get around this problem by using TD Waterhouse's "TransferDirect" feature, which enables online transfer of funds from a personal checking account, and makes the money accessible in two days.

Merrill Lynch Direct slipped 1/2 star this year owing to how we rate the trading experience. Though its research and reports are top-notch, the trading screen needs improvement. Merrill recently added online options trading to its lineup, but complex option trades still have to go through a broker. Merrill Mobile is flexible and offers more than just wireless trading and quotes.

Both Merrill and E*Trade, the next broker on the list, offer extensive banking capabilities to their customers. E*Trade, the No. 2 broker in terms of trading volume and No. 3 in numbers of accounts, has also added a tax tracking feature, GainsKeeper, to the site. High-account-balance holders at E*Trade get preference for initial public offerings, but they're still tough to come by. Our telephone researcher sat on hold waiting for an answer at E*Trade for a total of an hour over three different calls, which knocked its "Customer Access" rating down.

Fidelity Investments, which has the most online accounts -- 4.93 million versus Schwab's 4.3 million -- has made a big push in customer service in the last year. In addition to its wide range of wireless services, Fidelity has focused on two key areas: research and account consolidation. Fidelity executives found that their firm's customers were going elsewhere for research, and then returning to place trades, so they added numerous tools and content to keep them in one place. Portfolio analysis reports are still a weak area for Fidelity, however, and the trading screens need an overhaul.

Quick & Reilly, which now includes the recently eliminated Suretrade, steps into the next spot with its well-designed order entry screens and execution reports, long list of tradable equities, and terrific third-party research and charting capabilities. It loses points because of a lack of portfolio analysis and tax reporting on the site. There is no wireless access either.

The last two spots in the 3 1/2-Star group go to A.B. Watley's "WatleyTrader" and Mr. Stock, two sites that appeal to frequent traders looking for low commissions. Watley customers can use the same account login for their Ultimate Trader platform, a direct-access service we plan to review in the near future. Light on research and portfolio and tax reporting, Watley nonetheless is a good site for frequent stock and options traders. And trade they do: an average of 98 times in the last quarter, according to J.P. Morgan.

Mr. Stock is something of a misnomer in that it is clearly aimed at the options trader, who will be pleased by the complex strategies that are automated (spreads, straddles, buy/writes.) Informative messages are provided while a trade is executing, including partially filled and partially rejected. A live broker reviews orders before they're sent to the exchange, but the delay is short -- apparently unnoticed by some of the broker's clients.

There's little to distinguish Mr. Stock for trading equities, except that it is one of the few that implement pre-filled order tickets well; when you click on a holding in your portfolio, a Sell order pops open, complete with the number of shares you currently own in the "Quantity" field.

Six brokers ended up in the Three-Star category, with offerings that will appeal to certain niches. Ameritrade, one of the fiercest competitors on the island, is adding research capabilities to its site, but the layout of the site makes some of them hard to find. We like the "Trade" button on the quote screens, which brings up an order entry screen with the ticker symbol already in place. Introduced last week, Ameritrade's Mutual Fund Finder lets you seek out among the funds offered by the broker one that meets your specific criteria. Ameritrade falls short in a common area: portfolio reporting and tax accounting.

Web Street Securities, Mydiscountbroker.com and newcomer RJT.com feature low fees and amenities that are designed for the frequent trader.

Web Street's range of offerings is extensive, but the site suffers from a somewhat muddled design that makes it difficult to wend your way from one spot to the other. Like National Discount Brokers, Web Street's trading screen is always open while you're on the site, but weak portfolio reports and a lack of tax help hurt it. High-account-balance holders get access to premium research.

Customers of Mydiscountbroker.com can't short stocks short or buy mutual funds, but other orders are filled quickly and the online help is terrific. There isn't much help for tax planning, but you can find articles in the Tax Center about investment issues.

At RJT.com, you'll find low costs and a very well laid-out trading screen, but not much in the way of portfolio analysis or tax help. This is clearly a site aimed at the self-directed investor who does research elsewhere, and accounts for portfolio changes offline. That's not too surprising inasmuch as RJT.com's customers are the most frenetic on the online island -- averaging 182 trades a quarter.

Wall Street Access and Datek Online, two very different brokers, comprise the rest of the Three-Star field.

Wall Street Access is geared for heavy options traders, and has additional research and other benefits for high account balance holders. Its phones are answered quickly, and you can opt routing an order to a specific ECN. Reports could be much improved, though, and this broker's rankings suffer from an inability to trade bonds or mutual funds online.

Datek's trading screens shine, especially with the addition of the Level II Streamer, but the site is difficult to navigate otherwise. Research offerings are disconnected from current holdings. With a site redesign, and improvement to portfolio reports, Datek, the No. 3 in trading market share, could move up the Barron's charts, with a bullet.

Earning 2 1/2 Stars are eDreyfus, SiebertNet and American Express Brokerage. Each has a major weakness that brings its overall score down.

In eDreyfus' case, the process of entering an order has major flaws. You enter a ticker symbol before going into the trading screen, but if you decide to trade something else and change the ticker symbol on the order entry ticket, you get an error message. Though you can trade most equities online (except for complex options), the site itself is poorly laid out and navigation is difficult.

Muriel Siebert's site, SiebertNet.com, has a good order-entry screen and fast executions, and the telephone help is terrific. But the research offerings are disconnected from portfolio holdings, and many are available only at a fee. Portfolio analysis here requires additional data entry, as you type all your trades into a third-party program. SiebertNet's brokers will handle your large orders personally, working to get you better prices.

American Express found out the hard way that offering free trades didn't pay. It has changed its policy to giving a limited number of free trades to high rollers, which hurt points awarded for Costs. And it's also the only broker that makes it almost impossible to view a real-time quote before placing an order. Though you get a quote on the confirmation screen, that's not much help when placing a limit order. AmEx has a limited universe of equities tradable online, which hurts its Range of Offerings rating.

While these survivors have demonstrated their mettle, we'd still like to see further improvements. Start with logging into the site: please let us define a customer name that isn't an impossible-to-remember string of numbers and letters. And while you're at it, take a look at the location of your log-in button and make it more obvious.

And to reiterate, portfolio analysis and tax reports have to improve. One customer support rep sighed during our conversation, "I wish you could see these reports online. It would make my job easier." The lack of clear information regarding cost basis (especially of mutual funds) means many investors end up having to plead for help at tax time.

Personalization of the site, so that items of importance to the customer are easily accessible, is a meaningful benefit. While many brokers are adding amenities that they hope will make their sites "stickier," they still send their customers out across the Internet to perform some basic research. How about letting customers add their own links to the broker's site so they stay inside the frame and can quickly place a trade when necessary? I'd like to see brokers integrate their research offerings more tightly into a customer's current holdings. Some brokers do a decent job of this, but many require their customers to type ticker symbols into numerous different screens.

Will there ever be a Five-Star broker? We can dream, and we'll keep pushing the ideas our readers send us. Even our top-ranked online brokers fall short in some respect.

And if experience is any guide, this year's Four-Star online brokers probably will be afflicted with a sort of winner's curse in the days just ahead. Almost invariably, we hear about difficulties reaching our top-ranked brokers right after we publish our annual rankings as new customers flood them with account applications and transfers. It's more like getting tickets to a hit show than watching a top-rated TV series. But, then again, nobody pursues the competitors who get voted off the island.