Europe E-Brokerages Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 6.67 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe E-Brokerages Market Analysis
The Europe E-Brokerages Market size is estimated at EUR 5.26 billion in 2023, and is expected to reach EUR 7.26 billion by 2028, growing at a CAGR of 6.67% during the forecast period (2023-2028).
Online brokerage is defined as the selling of securities (stocks, bonds, mutual funds, warrants, etc, etc.) on the Internet. The European brokerage market earlier used to be dominated by local banks that served their larger client base and operated using a brick-and-mortar business model initially. Later e-commerce business model was introduced by new age fintech companies by leveraging on the technology and offering services at a very competitive pricing structure. In the present day, both banks and e-brokers are leveraging technology and providing online trading platforms and services virtually. Structural growth drivers like raising fintech services penetration, increasing financial assets and changing investor behavior, and many other factors are driving the growth in the European online brokerage market. The market for online brokerage services in Europe is continually evolving and is intensely competitive. The retail brokerage industry has experienced significant consolidation which is expected to continue in the future and may increase competitive pressures in the industry.
Each country in Europe has a different style of investing and the number of trades executed per account in a year is also different from country to country. The dominant income model of brokerage firms in the Eurozone is based on trade commissions without active monetization of the bid/ask spreads and trading flow. This risk-averse model has mainly to do with regulatory scrutiny and customers that demand high cost transparency. In Europe, there are a number of international brokerage providers which operate with different business models. They tend to have no regional anchoring and often only offer exposure to the financial markets through derivatives such as CFDs without offering their customers the option of physical asset ownership. Due to the different core businesses of these brokerage providers they also tend to have greatly differing costs of settlement and these costs vary across countries.
Europe E-Brokerages Market Trends
Growing Retail Investors in The Region is Driving The E-Brokerages Market
Retail investors look for opportunities to trade or invest using platforms such as e-brokerage that are easily accessible to private individuals. Since 2020, there was a notable increase in the number of retail investors in Europe. The work-from-home culture during the pandemic gave people more time to research how to begin investing. Additionally, some people sought to build a financial safety net in case the worst happened because nobody knew how the job market would be after lockdowns.
Retail investors now have greater access to European markets than ever, with the custom e-trading platforms developed by traditional and online brokers to draw in a new wave of retail investors. Financial barriers to investing are lower than ever, accounts are simple to open and administer, and data is much more readily available with streamlined user interfaces and quicker connection speeds. Retail brokers in Europe report that between 2020 and 2021, the number of clients dramatically grew. For instance, the UK-based online trading platform Freetrade, which debuted in the latter part of 2018, added almost 160,000 new users in January 2021, reaching the million-user mark in October 2021.
High Online Banking Penetration in Europe is Fueling the E-Brokerage Market
More than half of adult Europeans use Internet banking. This share is constantly increasing and has more than doubled since 2007 when it stood at around 25%. Internet banking is particularly popular among 25 to 34-year-olds, with more than two-thirds using this facility. The use of Internet banking tends to increase in line with the user's education level. While only 24% of those with low education use e-banking, 77% of those with high education use this service. In the European region, the share of people using digital banking services increased from 36 to 61 percent between 2010 and 2021. In 2021, it was found that 96 percent of the Norwegian population accessed online banking sites, making Norway the country with the strongest Internet banking penetration in Europe, followed by Denmark and Iceland. Online banking is becoming one of the most popular payment methods in Europe, allowing customers of a bank or other financial institution to develop a wide range of financial transactions through their websites. Over time, Europeans' confidence in this electronic payment system has increased.
Europe E-Brokerages Industry Overview
Europe is home to a large number of E-brokerage companies. There are a large number of players in each country having different market shares. Europe- E-Brokerages Market is highly competitive. Large e-brokerages companies are extending their services across many countries in Europe. E-brokerage companies compete heavily in terms of fees for retail investors. The large user base of the online platforms enables them to lower their fees for investors. The major players in the market include Interactive Brokers, EToro, Saxo Group, Degiro, Plus 500, Trading 212, Exante, X-Trade Brokers, Robinhood, Swissquote, etc.
Europe E-Brokerages Market Leaders
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Interactive Brokers
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Etoro
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Plus500
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Saxo Group
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Trading 212
*Disclaimer: Major Players sorted in no particular order
Europe E-Brokerages Market News
- February 2023: Interactive Brokers announced the launch of its new IBUSOPT order destination. With the dramatic increase in retail options trading, Interactive Brokers has launched this new order destination to help its retail and institutional clients achieve better price execution on their options trades.
- January 2023: Etoro announced the launch of ValueGurus, a portfolio offering retail investors long-term exposure to companies cherry-picked by influential financial personalities who choose value investing.
Europe E-Brokerages Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 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
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitutes
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 Insight on Various Regulations Governing the E-Brokerages Market In Europe
- 4.6 Technological Advancements such as Regtech, Blockchain, Data Analytics, etc. Changing the Market Dynamics
- 4.7 Insights into Products and Services Offered by Online Brokers across Europe
- 4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Investor Type
- 5.1.1 Retail
- 5.1.2 Institutional
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5.2 By Services Offered
- 5.2.1 Full Time Brokers
- 5.2.2 Discount Brokers
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5.3 By Operation
- 5.3.1 Domestic
- 5.3.2 Foreign
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5.4 By Geography
- 5.4.1 Germany
- 5.4.2 United Kingdom
- 5.4.3 Russia
- 5.4.4 Spain
- 5.4.5 Netherlands
- 5.4.6 Denmark
- 5.4.7 Sweden
- 5.4.8 Finland
- 5.4.9 Norway
- 5.4.10 Rest of Europe
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Interactive Brokers
- 6.2.2 Etoro
- 6.2.3 Plus500
- 6.2.4 Saxo Group
- 6.2.5 Trading 212
- 6.2.6 Degiro
- 6.2.7 Exante
- 6.2.8 X-Trade Brokers
- 6.2.9 Robinhood
- 6.2.10 SwissQuote
- 6.2.11 BUX
- 6.2.12 Vanguard
- 6.2.13 Capital.Com
- 6.2.14 Tradestation
- 6.2.15 Freetrade
- 6.2.16 Hargreaves Lansdown
- 6.2.17 IC Market
- 6.2.18 Other Key Players*
- *List Not Exhaustive
7. MARKET OPPORTUNITY AND FUTURE TREND
8. DISCLAIMER AND ABOUT US
Europe E-Brokerages Industry Segmentation
A broker is a person or business between a potential investor and a securities exchange. A company serving as a customer's agent and receiving payment from the customer in the form of a commission is known as a broker. The online service it provides in exchange for fees is an e-brokerage service. A complete background analysis of the Europe E-Brokerage Market includes an assessment of the economy, a market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles covered in the report. Europe E-Brokerages Market can be segmented by Investor Type (Retail and Institutional), by Services Offered (Full Time Brokers and Discount Brokers), by Operation (Domestic and Foreign), and by Geography (Germany, United Kingdom, Russia, Spain, Netherlands, Denmark, Sweden, Finland, Norway, and the Rest of Europe). The report offers market size and forecasts for Europe E-Brokerage Market in value (USD million) for the above segments.
| By Investor Type | Retail |
| Institutional | |
| By Services Offered | Full Time Brokers |
| Discount Brokers | |
| By Operation | Domestic |
| Foreign | |
| By Geography | Germany |
| United Kingdom | |
| Russia | |
| Spain | |
| Netherlands | |
| Denmark | |
| Sweden | |
| Finland | |
| Norway | |
| Rest of Europe |
Europe E-Brokerages Market Research FAQs
What is the current Europe E-Brokerages Market size?
The Europe E-Brokerages Market is projected to register a CAGR of 6.67% during the forecast period (2024-2029)
Who are the key players in Europe E-Brokerages Market?
Interactive Brokers, Etoro, Plus500, Saxo Group and Trading 212 are the major companies operating in the Europe E-Brokerages Market.
What years does this Europe E-Brokerages Market cover?
The report covers the Europe E-Brokerages Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe E-Brokerages Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the Opportunities in the Europe E-Brokerages Market?
The Opportunities in the Europe E-Brokerages Market are a) Robo-advisory services using AI and algorithms b) Expanding into new European or emerging markets c) Integrating social trading features to attract new investors d) Partnerships with traditional financial institutions e) Offering more educational resources to empower investors
Europe E-Brokerages Industry Report
The Europe e-brokerages market has experienced substantial growth, driven by technological advancements and a shift towards digital financial services. Intense competition among established financial institutions and fintech startups is evident, as both leverage advanced technologies like AI and machine learning to enhance user experiences and offer personalized services. Market segmentation reveals a diverse landscape, with offerings tailored to both retail and institutional investors through various platforms including direct access, robo-advisory, and hybrid models. The rise in retail investors is motivated by the convenience and accessibility of online trading platforms that provide 24/7 market access and lower transaction costs compared to traditional brokerages. Significant concerns in the European e-brokerage market include regulatory challenges and cybersecurity, necessitating continuous innovation and adaptation to meet evolving customer expectations and maintain market integrity. The future outlook remains promising, with potential growth opportunities in mobile trading, social trading features, and sustainable investing, catering to a digitally savvy and environmentally conscious investor base. For detailed statistics on the Europe e-brokerages market share, size, and revenue growth rate, refer to Mordor Intelligence™ Industry Reports, which include market forecasts, outlooks, and historical overviews. Get a sample of this industry analysis as a free report PDF download.
