Odd Lots The Evolution Of The Online Brokerage Business
Mar 18, 2019
Chris Larkin, Senior Vice President of Trading at E*Trade, shares his insights from the online brokerage industry, tracing its evolution since the tech bubble of the late 90s. He discusses how innovative technologies have transformed trading, emphasizing the shift from speculative stock picking to passive investment strategies. Larkin highlights the rise of Electronic Communications Networks (ECNs) that revolutionized order execution and the changing motivations of individual investors. This dynamic landscape showcases how brokerages are adapting to meet diverse trading needs.
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Joe's Trading Start
- Joe Weisenthal got interested in markets in the late 90s after turning $2,000 into $20,000 trading tech stocks.
- This personal experience sparked his interest in the online brokerage business and its evolution.
Shifting Investment Culture
- The pervasiveness of stock trading in the late 90s, similar to the crypto craze, drove cultural obsession.
- Today's mantra of passive investing contrasts sharply with that era's focus on individual stock picking.
Early Days of Trading
- In 1991, Chris Larkin started at Waterhouse Securities, where trading was manual and information scarce.
- Clients had to call for quotes and place orders, highlighting the stark contrast with today's technology.