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Analysts urge caution as Net brokerages thrive

As online brokerages speed ahead with new offerings and reduced fees for trades, some analysts warn that the trading boom may not last.

CNET News staff
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CNET News staff
 
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As online brokerages speed ahead with new offerings and reduced fees for trades, some analysts warn that the trading boom may not last.

"Brokers that insist on catering to [people who trade stocks daily or weekly] are going to be fighting for a smaller and smaller market--not just market share,"

- Chris Musto, Gomez Advisors analyst

 
Online brokerages: grow or wither?
Web users have been signing up in droves with online brokerages, but analysts warn that they also will be quick to stop trading if the market sours, leaving some brokerages floundering.

Schwab execs sell two million shares
The Internet brokerage's co-chief executives, Charles Schwab and David Pottruck, sold more than 2 million shares of the company's stock in the past week, the Washington Service says.

DLJdirect offers trading in the U.K.
The Internet brokerage of Donaldson, Lufkin & Jenrette says it will offer online securities trading in the United Kingdom, as more and more securities firms tap into the growing demand for investing through the Internet.

Schwab's Net trading site down for an hour
Charles Schwab's online-trading system crashes for one hour until it is switched to backup computers.