Market Trends of Online Trading Platform Industry
Platforms to be the Fastest-growing Component Segment
- Rapid technological developments play an important role in driving the platform offerings segment. According to ITU, due to the availability of high-speed internet and its access worldwide, the estimated number of internet users worldwide was to be 5.4 billion by 2023. These factors, along with sophisticated trading algorithms, mobile trading capabilities, and advanced charting tools, have led to the development of more robust and user-friendly trading platforms.
- The demand for online trading platforms is growing due to retail investors' increasing interest and participation in stock markets and other financial markets. The accessibility of trade to a wider range of individual investors has been facilitated by the ease of access, affordability, and convenience provided by these platforms.
- In addition, with more traders taking advantage of the use of smartphones and tablets to carry out transactions or manage portfolios, there continues to be a growing demand for mobile trading. In response to this trend, online trading platforms are focusing on the development of user-friendly apps for smartphones with clear interfaces, offering real-time data and seamless order execution capabilities.
- Cloud-based deployment is expected to account for an important share of the platforms offering different types of deployment options. Different types of platforms, including brokering platforms, direct market access platforms, foreign exchange trading platforms, options and social trade platforms, commonly use cloud technology.
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North America is Expected to Register Significant Market Growth
- North America is predicted to hold one of the largest market shares in the online trading platform market. Some primary drivers expected to augment market growth throughout the forecast period include increasing investments in trading technologies (such as blockchain), the expanding presence of algorithmic trading suppliers, and the growing government support for international trading.
- Moreover, due to the increased acceptance and improvement of technology, North America is one of the fastest-expanding regional markets for online trading platforms. It has a well-developed infrastructure and the financial means to pay for solutions for Internet trading platforms. Furthermore, it is anticipated to register strong growth possibilities during the forecast period, mainly due to the favorable urban and modern environments.
- Opportunistic growth of the market in the region during the forecast period is expected to be driven by the increase in demand for cloud solutions. Compared to earlier trading strategies, they have a number of advantages.
- The market is expected to be dominated by North America over the forecast period. Major players like MarketAxess Holdings Inc., Ally Financial Inc., and TD Ameritrade Holding Corporation have a significant role to play in the development of this regional market.
- In addition, as the COVID-19 pandemic disrupted social interaction between clients and brokers, there has been a surge in self-directed trading via traditional online trading platforms. There are still some banks in the regions that have not developed and launched online trading systems.
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