The online sharedealing market has always been hyper-competitive in the UK . Flat rate fees have become the norm and some brokers even offer free dealing from time to time. But without the trade volumes enjoyed by the US brokerage sector, UK brokers were always prey to wafer thin margins. And so Hoodless Brennan's withdrawal from the retail online dealing market comes as little surprise. Sub-£10 dealing fees eventually became unsustainable in a consolidating market where deep pockets and strong brands are a must for survival.
Read my Interactive Investor feature "What is the future for online stockbrokers?" for an analysis of the sector.
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