Market Trends of E-Brokerage Industry In The United Kingdom
Rising Digital Innovation & Adoption of Artificial Intelligence (AI) and Machine Learning (ML)
UK E-brokerages are seeing a steady rise in revenue as the country accounts for a significant proportion of investing and trading within the European region. Robo advisors and Neo brokers continue to dominate the digital Investment market in the UK with a market value of over USD 100 Billion.
The use of Artificial Intelligence (AI) and Machine Learning (ML) by E-brokerage service providers has raised the user’s risk awareness and helped them to choose the right stock without the need for a broker. The increasing Internet penetration in the country (around 90%) means that E-Brokerages are constantly growing their market share to offer solutions to diversify investments and to invest in stocks. By having the option of trading online through e-brokerages, investors can invest in international companies listed domestically and even in the global market. Digital innovations are driving the growth of the United Kingdom e-brokerage market with more competition between players.
Internet Penetration is on the Rise, Leading to an Increase in Investments From Retail Investors.
Retail investors in the United Kingdom hold more than USD 317 Billion in domestic shares with more than 23 Million shareholders in the country accounting for around 12% of the shares listed on the London stock exchanges. E-brokerage platforms such as Interactive Brokers, eToro, XTB, and SAXO bank are making trading more convenient for retail investors in the country by charging minimum amounts as transaction and commission fees.
Gen Z & Millenials make up over 50% of the population and are heavily involved in investment activities, driving the UK E-brokerage market. Over 13% of the United Kindom shares are owned by individuals, and this number continues to grow post-pandemic, with users looking for higher returns on investments in the market, leading to further growth in the E-brokerage market.
