J.D. Power's annual survey released today shows that voluntary investor satisfaction remains unchanged, indicating that investor satisfaction with voluntary tools is not neatly tied to a strong stock market.
According to J.D. Power's 2024 U.S. Voluntary Investor Satisfaction Study, overall satisfaction for “do-it-yourself” investors in 2023 was 708 out of 1,000. His satisfaction rating increased by 1 point from 2023, but remained the same in 2021. JD Power found that satisfaction was highest among active traders and lowest among investors who used buy-and-hold strategies.
“Trust will be a key variable as brokerages strive to attract the growing number of millennial and Gen Z DIY investors,” said Kapil Vora, senior director of wealth intelligence at J.D. Power. Stated. “Currently, trust levels are flat and until companies find ways to better connect with investors, they will struggle to build the relationships needed to differentiate and add value beyond just their digital capabilities.” I will.”
This is the 22nd year of J.D. Power's independent investor survey. According to J.D. Power, the 2024 survey included responses from January 2023 to January 2024 from 9,875 investors who made all investment decisions “without the advice of a full-service, dedicated financial advisor.” It is included.
Fidelity received the top rating among independent trading platforms for investors looking for guidance in their trading decisions, ranking at 708 points, with Charles Schwab ranking just behind with 707 points. Vanguard and TD Ameritrade were tied for 3rd place with 702 points (although he is a TD Ameritrade customer since he moved to Schwab in 2023).
For DIY investors, the currently dormant TD Ameritrade takes the top spot with 722, with Charles Schwab and Vanguard tied for second with 717.
While satisfaction among DIY investors has stagnated over the years, satisfaction among self-directed investors who seek guidance from an app of their choice will increase by 15 points from 685 to 700 between 2023 and 2024. (Overall satisfaction for this group was 692 in 2021 and 719 in 2022).
J.D. Power identifies respondents as either individual investors who can contact the company for information without seeking the help of a licensed financial advisor, or with the assistance of a licensed financial professional (often in a call center or Investors are divided into self-directed investors who seek guidance (through centralized management). unit).
Craig Martin, Executive Managing Director and Head of Asset and Loan Intelligence at J.D. Power, found these increases in self-directed trader satisfaction noteworthy.
“One area where we are seeing increased demand across all categories of investors, including those who have historically been characterized strictly as DIY, is for some degree of personalized guidance and support.” he said. “Many companies currently lack that guidance.”