Market Trends of US Online Trading Platform Industry
Increasing Accessibility and the Rise in the Adoption of Smartphones is Expected to Drive the Market Growth
- Smartphones have been developed to provide advanced functions, improved processing power, and simple user interfaces. Trading platform providers have taken advantage of these improvements by creating mobile apps that are both seamless and user-friendly. Mobile trading apps often include streamlined interfaces, personalized notifications, and simple features that make trading more accessible and entertaining for a broader range of consumers.
- Smartphones' accessibility and convenience have increased trading activity among retail investors. The ability to trade from any location and respond rapidly to market events has attracted many traders, previously limited by physical trading facilities or desktop programs. This increase in trading activity has aided the expansion of online trading platforms in the United States. According to ITU, as of January 2023, there were 311.3 million Internet users in the United States.
- Moreover, smartphone popularity has increased in tandem with advances in mobile technology, such as quicker internet access, enhanced security features, and the incorporation of biometric authentication, which build trust in consumers, improves concerns about the security and reliability of mobile trading platforms and as a result, drives their adoption.
- For instance, in September 2022, the INX Digital Company Inc., a broker-dealer and inter-dealer broker, introduced its security token trading platform and the cryptocurrency trading platform has converged and now offers a seamless and secure single point of entrance called INX ONE - the world's first and only fully-regulated, end-to-end platform for listing and trading both SEC-registered security tokens and cryptocurrencies.
- Smartphone accessibility and usage in the United States have broadened the reach of online trading platforms. Convenience, improved user experience, real-time market updates, increased trading activity, social trading features, and technological developments connected with smartphones have all contributed to the country's growth and popularity of online trading platforms and is expected to continue over the forecast period.
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Platforms Offerings Segment is Expected to Hold Significant Market Share
- The platform offerings encompass brokerage platforms, direct market access (DMA) platforms, forex trading platforms, options trading platforms, cryptocurrency trading platforms, social trading platforms, robo-advisory platforms, and mobile trading apps, each providing a range of features and services tailored to facilitate trading in various financial instruments, markets, and investment strategies.
- Rapid technological advancements play a significant role in driving the platform offering segment. The availability of high-speed internet, sophisticated trading algorithms, mobile trading capabilities, and advanced charting tools have led to the development of more robust and user-friendly trading platforms.
- Further, retail investors' growing interest and participation in the stock market and other financial markets have fueled the demand for online trading platforms. The ease of access, affordability, and convenience offered by these platforms have made trading accessible to a broader base of individual investors. According to GSMA Intelligence, there were 90.7% of users accessing the internet via mobile phones in the United States.
- Moreover, the popularity of mobile trading continues to rise, with an increasing number of traders preferring to execute trades and manage their portfolios using smartphones and tablets. Online trading platforms focus on developing user-friendly mobile apps with intuitive interfaces, real-time data, and seamless order execution capabilities to cater to this trend.
- Furthermore, Cloud-based deployment is expected to hold a significant share of the platform offering among deployment modes. Various platform types widely adopt cloud-based deployment, including brokerage platforms, direct market access (DMA) platforms, forex trading platforms, options trading platforms, and social trading platforms.
