Research Demonstrates Active Investor Market is an Emerging Growth Opportunity for Online Brokerage Firms

Celent estimates Active Investor market will reach 16 million investors by 2012

Scivantage and Celent team up to deliver Webinar discussion on technology and the emergence of the active investor

JERSEY CITY, N.J., July 12, 2010Scivantage, a leading provider of Web-based, front- and middle-office technology solutions to the financial services industry, and Celent, a research and consulting firm focused on the application of information technology in the global financial services industry, have released a report on the emerging opportunity within the active investor segment.

The active investor, a self-directed investor that trades between 3 to 10 times per month and relies on technology to support their investment experience, represents a significant growth opportunity for online brokerage firms, according to the latest Celent Research Note titled, “The Self-Directed Investment Market: A Focus on Active Investors”. With continued market uncertainty, an increasing number of retail investors are moving away from managed brokerage relationships and opting for the self-directed model in order to take a more hands-on and active role in the management of their investment future. Celent estimates that by 2012, the active investor market will reach 16 million investors, making up 40% of the self-directed market.

Some of other findings in the report include:

  • Active investors represent a significant opportunity for firms, with a projected growth rate of 9% by end of 2010.
  • Access to sophisticated investment products as well as market volatility will encourage the active investor segment to grow at a faster rate than the traditional investor segment.
  • Higher trading volume and use of complex trading strategies make the active investor a very profitable segment for online brokerages.
  • Online brokerages will need to enhance their platforms to remain competitive; the most important areas will include more sophisticated trading tools, enhanced educational materials, more social networking features, improved mobile access and improved usability.
  • Once a product for the sophisticated trader, options are becoming increasingly popular among all investors.

“For the active investor segment, the investment experience has become less about the speed and cost of the transaction and more about the quality of service, access to robust functionality and the overall convenience to proactively manage their investments, at anytime and from any place,” said Isabella Fonseca, a senior analyst within Celent’s international group and author of the report. “Those firms that are willing to invest and adapt to client demands will be future industry winners.”

“With advancements in mobile technology and premium trading tools to automated customer service capabilities, technology continues to change the way investors manage their investments and interact with their brokerage provider. Active investors are a driving force behind many of these innovations,” said Joe Stensland, Senior Vice President, Marketing and Products, Scivantage. “Scivantage is committed to being at the forefront of this emerging trend by providing industry-leading solutions which enable our clients to gain a competitive edge.”

To showcase and further discuss the findings in the report, Scivantage and Celent will hold a Webinar titled “Online Brokerages: Technology and the Emergence of the Active Investor” tomorrow, Tuesday, July 13, 2010, at 4:00pm EDT.

The full report, titled “The Self-Directed Investment Market: A Focus on Active Investors” is available at

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

About Scivantage

Leading financial institutions depend on Scivantage for essential front- and middle-office applications that deliver transaction-critical data, automate key business processes and drive operational efficiencies. Scivantage’s proven, back-office independent brokerage solutions offer a powerful suite of applications that span the workflow of financial professionals and support the complex investment needs of the retail investor. From online trading and event notification management to automated account opening, maintenance and funding, Scivantage enables financial institutions and financial professionals to dramatically reduce operational costs, strengthen customer relationships and improve productivity. For more information, please or contact us at +1.866.724.8268.

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Posted in Press Release.