| 24 July 2009

An interesting article from Rachel Chang over at Reuters covering the huge influx of capital to online brokers. Many investors with accounts at traditional firms expected more from their advisers. As the markets tanked and investors watched their portfolios dwindle, more and more started looking for ways to gain more direct control over their accounts.

According to the article, since the start of the financial implosion over $30 billion flowed into TD Ameritrade (AMTD) and Schwab (SCHW) alone. This news comes as no surprise given the results we just reported during earnings season. But it is interesting to note that at the same time more than $100 billion flowed out of traditional brokerage accounts.