Online Brokerage Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 6.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | South America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Online Brokerage Market Analysis
The E-brokerage market has generated a revenue of USD 10.1 billion in the current year and is poised to achieve a CAGR of 6.5% for the forecast period.
E-brokerage or an online broker is one who deals with clients through the Internet rather than at a physical location. Those active in internet trading will frequently contact these specialists or organizations to help them buy and sell shares.
The COVID-19 outbreak has resulted in major financial market falls and raised financial market dangers all around the world. Central banks and governments have thrown their policy tools into the market and launched never-before-seen assistance programs. As the COVID-19 epidemic progresses, investors boost their trading operations, both at the extensive and intensive margins. The number of investors who open their first account with the broker grows, while veteran investors increase their average trading activity. As the number of COVID-19 instances doubles, investors' weekly trading increases considerably. Investors establish additional stock and index positions, but do not shift to safe-haven (gold) or particularly "risky" assets (CFDs on stocks, cryptocurrencies).
Brokerages are fairly diversified. Along with fulfilling orders, the players offer other investment strategies and other financial advisory services. A big chunk of their topline comes from filling buy and sell orders from clients. Commission and fee-based revenue come from the principal transactions. Along with it, interest income earned from investments and dividends, investment banking revenue through underwriting, and advisory services. The companies in this industry have varying levels of debt. Large brokers doing significant investment banking business often carry heavy debt burdens. While conservative companies are those who tend to depend on commissions and hold lighter debt balances.
Online Brokerage Market Trends
Zero commission in United States equity markets change market dynamics
United States Securities Acts Amendments of 1975 ended fixed trade commissions. Since then the equity commissions have been on a downward trend for both institutional and retail clients. This culminated in zero-commission trading for retail investors in the United States. For a few years, the mobile app-based brokerage Robinhood Markets Inc. has offered free trades and a USD 0 minimum balance to draw in millennial investors. And big financial-services companies have been cranking out other kinds of free offers. Fidelity Investments Inc. initiated index funds with zero fees, and JPMorgan Chase & Co. rolled out a service that offered clients 100 commission-free stock and ETF trades in their first year.
Brokerages also make money by catering to investment advisers, loaning customers cash to buy stocks on margin, and lending out securities to short sellers hoping to profit on a decline in prices. One of the greatest sources of revenue for brokers is to invest or loan out the money clients don't have in play in the market which is put into banking subsidiaries of brokerage houses. The revenue loss from implementing zero-commission can be covered by the surge in customer base. The revenue breakup of a few major brokerage houses indicates the hidden potential of such other sources of revenue for brokers.
Online Trading Platform is driving the growth of the market
The development of technology plays a crucial role in the development of the global online trading platform market. Digital technology is advancing at a rapid pace, and online trading platforms have actually developed in terms of sophistication, usability and feature richness. In addition, improvements in internet connectivity, mobile technology, and trading software are providing the market profitable development opportunities.
The demand for customized trading platforms is expected to grow as end-users, including government and non-profit banks, increase their demand for customized trading solutions. ETPs can make a significant contribution to the growth of government securities markets at times when trading volumes have reached or are on track to reach a certain minimum critical mass.
The industry is expanding as trading platforms are increasingly adopting blockchain and artificial intelligence technologies to improve their accuracy and efficiency. The combination of automation, algorithms, and high-fidelity trading has also been driven by increasing trends in electronic trading, which aims to simplify the trade execution, improve efficiency, and enable advanced trading strategies, thus supporting market development.
Empirica introduced its trading algorithm called Volume-Weighted Average Price (VWAP). It is capable of lowering the impact on the market price by using a pre-computed schedule for implementing a bigger order.
Online Brokerage Industry Overview
This industry's competitive environment is fairly fragmented, with the participation of well-known brands as well as some regional and local businesses. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.
Online Brokerage Market Leaders
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Fidelity Investments
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Charles Schwab Corporation
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E-Trade
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Interactive Brokers
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Etoro
*Disclaimer: Major Players sorted in no particular order
Online Brokerage Market News
- May 2022: Interactive Brokers partnered with TradingView. The new partnership was like a win-win for all parties, particularly for Interactive broker clients as they were now trading directly from their TradingView workspaces and charts.
- May 2022: Fidelity International partnered with Canadian FinTech company, Conquest, as the exclusive distributor of its financial planning software, 'Conquest Planning' to the UK independent advice market.
- August 2022: eToro, a multi-asset social investment network, has struck a formal agreement to buy Gatsby, a fintech firm that also hoped to compete with Robinhood, for USD 50 million in cash and common shares.
Online 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 INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Insights into Technological Advancements in the Industry
4.5 Insights on Various Regulatory Trends Shaping the E-Brokerages Market
4.6 Value Chain / Supply Chain Analysis
4.7 Porter Five Forces
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitutes
4.7.5 Intensity of Competitive Rivalry
4.8 Impact of COVID-19 On The Market
5. MARKET SEGMENTATION
5.1 Client
5.1.1 Retailers
5.1.2 Institutional
5.2 Services Provided
5.2.1 Full Time Brokers
5.2.2 Discounted Brokers
5.3 Ownership
5.3.1 Privately Held
5.3.2 Publicly Held
5.4 Geography
5.4.1 North America
5.4.2 Europe
5.4.3 Asia Pacific
5.4.4 South America
5.4.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Interactive Brokers
6.2.2 Charles Schwab
6.2.3 Fidelity Investments
6.2.4 TD Ameritrade
6.2.5 E-Trade
6.2.6 TastyWorks
6.2.7 Etoro
6.2.8 X-Trade Brokers
6.2.9 IC Markets
6.2.10 Eoption
6.2.11 First Prudential Markets*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Online Brokerage Industry Segmentation
An online broker, on the other hand, is a broker that interacts with clients over the Internet, rather than in person. An online brokerage is a brokerage that clients go to, rather than a physical brokerage office. Because the overhead costs associated with a physical brokerage office are higher than those associated with an online brokerage, online brokers charge lower fees. The E-brokerage Market is segmented by Client (Retailers, Institutional), by Services Provided (Full Time Brokers, Discounted Brokers), by Ownership (Privately Held, Publicly Held), and by Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa). The report offers market size and forecast values for the E-Brokerages Market in USD million for the above segments.
| Client | |
| Retailers | |
| Institutional |
| Services Provided | |
| Full Time Brokers | |
| Discounted Brokers |
| Ownership | |
| Privately Held | |
| Publicly Held |
| Geography | |
| North America | |
| Europe | |
| Asia Pacific | |
| South America | |
| Middle East and Africa |
Online Brokerage Market Research FAQs
What is the current E-Brokerages Market size?
The E-Brokerages Market is projected to register a CAGR of greater than 6.5% during the forecast period (2024-2029)
Who are the key players in E-Brokerages Market?
Fidelity Investments, Charles Schwab Corporation, E-Trade, Interactive Brokers and Etoro are the major companies operating in the E-Brokerages Market.
Which is the fastest growing region in E-Brokerages Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in E-Brokerages Market?
In 2024, the South America accounts for the largest market share in E-Brokerages Market.
What years does this E-Brokerages Market cover?
The report covers the E-Brokerages Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the E-Brokerages Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the regional trends in the E-Brokerage Market?
North America currently dominates the E-Brokerage Market, driven by factors such as a) High-speed internet adoption and growing awareness of online trading b) Government policies supporting the growth of the e-brokerage industry
What are the key segments of the E-Brokerage Market?
The key segments of the E-Brokerage Market are a) Service Provider: Full-time Broker and Discounted Broker b) Ownership: Privately Held and Publicly Held c) End-User: Retail Investor and Institutional Investor
Online Brokerage Industry Report
The E-Brokerages Market, driven by dynamic digital transformation, has reshaped the investment landscape, achieving notable growth through increased internet and mobile device usage, which makes trading accessible and cost-effective. This market covers various segments including service providers, ownership types, and end-users, and is segmented further into full-time and discounted brokers. Such fragmentation highlights how technology boosts accessibility and efficiency for investors. Online brokerage companies utilize high-end technologies and user-friendly interfaces to provide real-time data, diverse analytical tools, and lower transaction costs, attracting both retail and institutional investors. However, the expansion of the online brokerage market share is curbed by security concerns and the necessity for better investor education about online trading nuances. The ongoing evolution of the online as well as the online brokerage industry indicates a steady growth trajectory, as companies continually innovate and adapt to evolving investor needs, emphasizing cost efficiency and enhanced service delivery without physical intermediaries. Additionally, reports from Mordor Intelligence™ provide a comprehensive outlook that includes statistics, market share, size, revenue growth rate, and a historical overview of the E-Brokerages market, available for download as a free sample PDF.
