In Online Trading, Salomon Takes the Road Less Traveled

Solly's getting the word out: The discount-brokerage business may be fine for some full-service firms, but it isn't for Salomon Smith Barney.

The full-service brokerage unit of Citigroup (C Quote) isn't making plans to offer cheap online trades, unlike Wall Street rivals Merrill Lynch (MER Quote) and Prudential. Instead, during the first quarter the company's brokers will start sending customers to Citibank's discount-brokerage service, Direct Access, which charges $20 for most trades.

Instead of facing the cannibalization issue head-on, as other traditional brokerage firms have done, Solly is leveraging its role as part of a financial services conglomerate to keep its customers -- and its 11,000 brokers -- happy.

Separate but Equal

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