Older investors more likely to use traditional brokers

August 13, 2009 | By Kim Walker

A 2008 Gartner survey showed only 17 percent of “pre-booomers,” those 63 years old and above, using online brokerages, compared with 29 percent of “Gen X”ers – those age 33 to 44.

Demographics point to growth for online outfits, because their users are those who have come of age with the Internet, according to this article in the New York Times. For this reason, boomers are also more likely to shift to online brokers particularly given the lack of confidence in brokerages as a result of the financial crisis.

Younger investors want instant access and execution, and can get more information on their iPhones than brokers could get 10 years ago.