As was only to be expected, the commercial war between banks is now being fought out on the Internet, much to the delight of users. The cost of commissions for stock market intermediation is falling, while the quality and diversity of the services offered are climbing steadily. The goal of financial institutions and online brokers is to win over small and medium investors, and the market is helping them to achieve it, since trading shares on the Internet is cheaper than the traditional method. And transactions can be made at all hours of the day and night, practically in real time, which adds convenience to the already powerful argument of price.

Commissions are the primary source of revenue for online brokers, although there are other sources too, like online advertising and e-commerce activities. That is, cyberbrokers do not only stick to their knitting, but they also turn their hand to other activities like creating content for the site users, or offering a wide range of online financial products to their customers.

The automation of processes and the use of the Internet as the main vehicle for transactions means companies can save thousands of millions of pesetas in communications expenses. Sending e-mails to answer customers� questions is much more economically viable than the personalised systems used by offline brokers. To give an example, a fund managing assets worth a thousand million dollars a year generates annual snailmail costs of some 300,000 dollars. Similarly, while one member of a traditional customer service department is able to handle a maximum of 400 accounts, an Internet broker can push this figure up to 2,500 accounts. All of which means that online services are up to six times more efficient.

Online brokers do not just carry out their customers� orders but also offer advisory services concerning securities. Among the leading Spanish companies in this type of added value services is Techrules, a Spanish firm which bases its success on a mathematical and statistical method, totally shunning any market rumours or feelings. This means that in one second this Internet company can control more than 20,000 assets from all the world�s stock markets, which is simply beyond the scope of any human broker in the sector.
Among the most tempting offers to be found in this young market was made by the bank Uno-e with its Cuenta Freequence (Freequence Account), which enabled the investor to buy any shares on the Spanish continuous market with a commission of just 0.1%.

These online services, linked to financial institutions, are serious competition for the "flesh and blood" brokers, since the latter are not authorised to open accounts associated to stock market investments nor to augment their services with other complementary activities such as making transfers or setting up standing orders, to give just two examples.

The same thing happens with communication media companies which act as online financial intermediaries; they can�t compete on an equal footing with financial institutions either. Deutsche Bank, the leading European bank in terms of turnover, has no intention of letting any commercial opportunity go by, and has thus recently announced that it is setting up an Internet share trading service in Spain. This online broker will allow the bank�s customers to trade in real time on the main European and American markets. The service will also offer a free customised news and alert service (by both mobile and e-mail) for their customers. The bank expects to double its current tally of online customers and reach a total of 20,000 subscribers.
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�A recent study, carried out by the BlueSky International Marketing firm of consultants, has had nothing but praise for Ebankinter, to the point that it has dubbed it the "number one stockbroker in Spain". According to the consultants, the study examined in exhaustive detail five hundred aspects of each website (such as speed, user friendliness, efficiency, browsability, customer service) before placing Ebankinter at the head of all the sites, followed by Patagon (SCH), DBNet 24 (Deutsche Bank) and Selftrade Spain.

The main advantages of online investment are as follows:
1. Cheaper prices. The virtuality of online services allows companies to reduce many fixed costs. These savings can then be passed on to investors in the form of lower commissions than traditional broking companies can offer.

2. Access to a wide range of products and markets in real time. This means that you can diversify your portfolio -both in terms of assets and in markets- thereby minimising risk.

3. Instant information, analysis and studies. By e-mail, mobile short messages or over the Internet itself, you can keep informed, get advice, watch what the experts say, and thus be able to take informed decisions with all the information at your fingertips.

4. Real time execution. You are only a mouse-click away from ordering any trade, practically in real time. In a matter of seconds money flows from one package of securities to another, leaving a trail of earnings which would be the envy of any investor from just a decade ago.

5. Ease of investment. At home in your slippers, in front of the PC, at any hour of the day or night, you can move your money and track your investments on the screen.