E-Brokerages Market Size (2024 - 2029)

The online brokerage market is experiencing growth, driven by increased trading activities during the COVID-19 pandemic, which has led to a rise in new and veteran investors engaging in stock and index trading. This market's expansion is supported by the diverse services offered by brokerages, including order fulfillment, financial advisory, and investment banking, which contribute significantly to their revenue. The market's dynamics are influenced by the varying debt levels of brokerage firms, with larger firms often carrying heavier debts due to their investment banking operations, while more conservative firms rely on commission-based income and maintain lighter debt balances.

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Market Size of E-Brokerages Industry

Online Brokerage Market Summary
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

Online Brokerage Market Major Players

*Disclaimer: Major Players sorted in no particular order

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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 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
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E-Brokerages Market Size Summary

The online brokerage industry, characterized by its operation through internet platforms rather than physical locations, has seen significant growth and transformation, particularly in the wake of the COVID-19 pandemic. The pandemic prompted a surge in trading activities as both new and seasoned investors increased their engagement with the markets. This shift was supported by the extensive use of policy tools and assistance programs by central banks and governments worldwide. The industry is diversified, with brokerages offering a range of services beyond order fulfillment, including financial advisory services and investment strategies. Revenue streams are varied, encompassing commission and fee-based income, interest from investments, and investment banking revenues. The industry's landscape has been further shaped by regulatory changes, such as the United States Securities Acts Amendments of 1975, which led to a decline in trade commissions, culminating in zero-commission trading for retail investors.

Technological advancements have been pivotal in the evolution of online trading platforms, enhancing their sophistication and usability. Improvements in internet connectivity, mobile technology, and trading software have opened new avenues for market growth. The integration of blockchain and artificial intelligence technologies has further refined trading accuracy and efficiency. The demand for customized trading solutions is on the rise, driven by various sectors, including government and non-profit banks. The competitive environment of the industry is fragmented, with both established brands and emerging regional players. Strategic partnerships and acquisitions, such as Interactive Brokers' collaboration with TradingView and eToro's acquisition of Gatsby, highlight the ongoing innovation and expansion efforts within the market. These developments underscore the industry's dynamic nature and its potential for continued growth and diversification.

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E-Brokerages Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Insights into Technological Advancements in the Industry

    5. 1.5 Insights on Various Regulatory Trends Shaping the E-Brokerages Market

    6. 1.6 Value Chain / Supply Chain Analysis

    7. 1.7 Porter Five Forces

      1. 1.7.1 Threat of New Entrants

      2. 1.7.2 Bargaining Power of Buyers

      3. 1.7.3 Bargaining Power of Suppliers

      4. 1.7.4 Threat of Substitutes

      5. 1.7.5 Intensity of Competitive Rivalry

    8. 1.8 Impact of COVID-19 On The Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Client

      1. 2.1.1 Retailers

      2. 2.1.2 Institutional

    2. 2.2 Services Provided

      1. 2.2.1 Full Time Brokers

      2. 2.2.2 Discounted Brokers

    3. 2.3 Ownership

      1. 2.3.1 Privately Held

      2. 2.3.2 Publicly Held

    4. 2.4 Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia Pacific

      4. 2.4.4 South America

      5. 2.4.5 Middle East and Africa

E-Brokerages Market Size FAQs

The E-Brokerages Market is projected to register a CAGR of greater than 6.5% during the forecast period (2024-2029)

Fidelity Investments, Charles Schwab Corporation, E-Trade, Interactive Brokers and Etoro are the major companies operating in the E-Brokerages Market.

E-Brokerages Market Report Snapshots

Online Brokerage Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)