Discount Brokerage Market Size
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 24.24 Billion |
| Market Size (2029) | USD 32.89 Billion |
| CAGR (2024 - 2029) | 6.29 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | South America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Discount Brokerage Market Analysis
The Discount Brokerage Market size is estimated at USD 24.24 billion in 2024, and is expected to reach USD 32.89 billion by 2029, growing at a CAGR of 6.29% during the forecast period (2024-2029).
Discount brokerages have become increasingly popular among investors due to their low-cost structures and accessibility. Discount brokerage services are in high demand as it is simple for people to now manage their money due to technological advancements and internet trading platforms. The discount brokerage market has been greatly influenced by technological advancements.
Online trading platforms have become more sophisticated, offering intuitive user interfaces, real-time market data, advanced charting tools, and mobile accessibility. Investors may now conduct transactions and manage their portfolios more easily due to these technological advancements. Some discount brokerages have ventured into the robo-advisory space, offering automated investment management services. Robo-advisors use algorithms and computer models to offer tailored investing advice according to a person's risk tolerance and financial goals. This hybrid model combines the cost advantages of a discount brokerage with the convenience of automated portfolio management.
Discount Brokerage Market Trends
Increase in Enterprise Market is Fuelling the Market
As the enterprise market expands, more companies may offer employee stock options as part of their compensation packages. This may result in increased demand for brokerage services among employees who want to exercise their options or sell their vested shares. With the growth of the enterprise market, companies may expand their employee retirement plans, such as 401(k) or pension schemes. Enterprise companies often adopt equity compensation platforms to manage employee stock grants, stock options, and other equity-related incentives. These platforms can integrate with discount brokerages to provide a seamless experience for employees to manage their investments. This integration can drive the growth of the discount brokerage market as more enterprises adopt such platforms.
Rise of Discount Brokerage Market in Asia-Pacific
The region has witnessed a significant increase in internet penetration, particularly in countries like China and India. This has facilitated the growth of online trading and enabled more individuals to access discount brokerage services. The advancements in technology, particularly in the area of financial technology (fintech), have made it easier for brokerage firms to offer online trading platforms. Many investors in the Asia-Pacific region are cost-conscious and seek competitive pricing for their investment activities.
Some countries in the Asia-Pacific region have undertaken market liberalization measures, allowing increased participation of foreign investors and encouraging competition in the brokerage industry. This has resulted in the entry of new players, including discount brokerages, offering innovative services. The number of retail investors in the Asia-Pacific area has increased, driven by a growing middle class, rising income levels, and increasing financial literacy. Discount brokerages cater to this expanding retail investor base by providing accessible and affordable investment options.
Discount Brokerage Industry Overview
The discount brokerage market is consolidated, with few players leading the market. Some of the major players in the global market include Interactive Brokers, TD Ameritrade, Charles Schwab, ETrade, and Fidelity Investments, among others. In the study period, market players were also involved in mergers & acquisitions and partnerships focused on expanding their presence in the market. During the forecast period, the market offers growth prospects, which are anticipated to intensify competition. However, mid-size to smaller businesses are expanding their market presence by landing new contracts and breaking into untapped sectors thanks to product innovation and technology improvement.
Discount Brokerage Market Leaders
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Interactive Brokers
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TD Ameritrade
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Charles Schwab
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ETrade
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Fidelity Investments
*Disclaimer: Major Players sorted in no particular order
Discount Brokerage Market News
- September 2023: HDFC Securities launched the discount brokerage platform Sky. Through a single fintech platform, the app provides users with a wide range of trading and investment possibilities, including global equities, IPOs, Indian stocks, ETFs, mutual funds, futures and options, currencies, and commodities.
- September 2023: Ujjivan SFB partnered with SMC Global Securities to extend online trading services to the bank’s clientele.
Discount Brokerage Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Low-cost Trading Fee is Driving the Market
4.2.2 Increasing Popularity of Self-directed Investing
4.3 Market Restraints
4.3.1 Intense Competition among Discount Brokerage Firms
4.3.2 Potential for Technological Limitations
4.4 Market Opportunities
4.4.1 Expanding the Range of Investment Products and Services
4.5 Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Technological Innovations in the Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Mode
5.1.1 Online Discount Brokerage Service
5.1.2 Offline Discount Brokerage Service
5.2 By Application
5.2.1 Individual
5.2.2 Enterprise
5.2.3 Government Agencies
5.3 By Services
5.3.1 Order Execution and Advisory
5.3.2 Discretionary
5.3.3 Online Trading Platforms
5.3.4 Education and Investor Resources
5.4 By Commission
5.4.1 Commission-free Brokers
5.4.2 Fixed Commission Brokers
5.5 Geography
5.5.1 North America
5.5.1.1 United States
5.5.1.2 Canada
5.5.1.3 Mexico
5.5.1.4 Rest of North America
5.5.2 Europe
5.5.2.1 Germany
5.5.2.2 United Kingdom
5.5.2.3 France
5.5.2.4 Russia
5.5.2.5 Spain
5.5.2.6 Rest of Europe
5.5.3 Asia-Pacific
5.5.3.1 India
5.5.3.2 China
5.5.3.3 Japan
5.5.3.4 Rest of Asia-Pacific
5.5.4 South America
5.5.4.1 Brazil
5.5.4.2 Argentina
5.5.4.3 Rest of South America
5.5.5 Middle East
5.5.5.1 United Arab Emirates
5.5.5.2 Saudi Arabia
5.5.5.3 Rest of Middle East
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Interactive Brokers
6.2.2 TD Ameritrade
6.2.3 Charles Schwab
6.2.4 ETrade
6.2.5 Fidelity Investments
6.2.6 Robinhood
6.2.7 Vanguard
6.2.8 Ally Invest
6.2.9 Firstrade
6.2.10 DEGIRO*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Discount Brokerage Industry Segmentation
A stockbroker that executes buy and sell orders with minimal or no commissions is known as a discount broker. This report aims to provide a detailed analysis of the discount brokerage market. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights into the various product and application types. It also analyses the key players and the competitive landscape. The discount brokerage market is segmented by mode (online discount brokerage service and offline discount brokerage service), application (individual, enterprise, and government agencies), services (order execution and advisory, discretionary, online trading platforms, and education and investor resources), commission (commission-free brokers and fixed commission brokers), and geography (North America, Europe, Asia-Pacific, South America, and Middle East). The report offers market size and forecasts for the discount brokerage market in terms of revenue (USD) for all the above segments.
| By Mode | |
| Online Discount Brokerage Service | |
| Offline Discount Brokerage Service |
| By Application | |
| Individual | |
| Enterprise | |
| Government Agencies |
| By Services | |
| Order Execution and Advisory | |
| Discretionary | |
| Online Trading Platforms | |
| Education and Investor Resources |
| By Commission | |
| Commission-free Brokers | |
| Fixed Commission Brokers |
| Geography | ||||||||
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Discount Brokerage Market Research FAQs
How big is the Discount Brokerage Market?
The Discount Brokerage Market size is expected to reach USD 24.24 billion in 2024 and grow at a CAGR of 6.29% to reach USD 32.89 billion by 2029.
What is the current Discount Brokerage Market size?
In 2024, the Discount Brokerage Market size is expected to reach USD 24.24 billion.
Who are the key players in Discount Brokerage Market?
Interactive Brokers, TD Ameritrade, Charles Schwab, ETrade and Fidelity Investments are the major companies operating in the Discount Brokerage Market.
Which is the fastest growing region in Discount Brokerage Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Discount Brokerage Market?
In 2024, the South America accounts for the largest market share in Discount Brokerage Market.
What years does this Discount Brokerage Market cover, and what was the market size in 2023?
In 2023, the Discount Brokerage Market size was estimated at USD 22.72 billion. The report covers the Discount Brokerage Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Discount Brokerage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Discount Brokerage Industry Report
Statistics for the 2024 Discount Brokerage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Discount Brokerage analysis includes a market forecast outlook for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
