Research and news coverage are available on the internet for free but if you have all you need on your broker’s site, it saves you having to switch between sites.
Brokers typically offer both research and do-it-yourself selection tools with access to raw data. There is demand for either approach, according to Rawlings. Brokers agree that investors are becoming more self-reliant and that research plays a large part in it.
The quality of brokers’ research facilities has improved over the years and access is often free of charge. Some brokers offer the basic research free but charge for a premium service. Investor interest in charting facilities is growing.
Level I and II data
Level I data on screen provides basic price data, including the best bid and offer price. Level II data provides individual market maker prices as well as details of pending buy side orders. It enables traders to check on the depth of liquidity in the market and gives them a better feel for how the stock is doing. Access is available from financial websites or brokers.
Brokers are agreed that Level II data is a growth area. At present there are inconsistencies in quality as well as in the monthly charge. I know of one low-priced Level II provider that uses one licence for a number of subscribers, which means that in busy periods some must queue for access.
