What Is The Definition Of The Global Discount Brokerage Market?
Discount brokerage refers to a type of brokerage service that allows investors to buy and sell securities, such as stocks and bonds, at reduced commission rates compared to full-service brokers. These services offer fewer advisory and personalized services, focusing instead on executing trades for clients at lower costs. Discount brokers provide online trading platforms, allowing investors to manage their portfolios and make investment decisions independently, making them an attractive option for cost-conscious and self-directed investors.
Discount Brokerage Global Market Report 2024 provides data on the global discount brokerage market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The discount brokerage market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
What Are The Projections Exist For The Global Discount Brokerage Market Size And Annual Growth Rate?
The discount brokerage sector has experienced steady growth, climbing from $23.6 billion in 2023 to $25.63 billion in 2024 at an annual rate of 8.6%. Factors such as zero-commission trades, fractional share options, cryptocurrency trading, enhanced educational offerings, and rising disposable incomes have driven this expansion. Looking ahead, the market is anticipated to reach $35.76 billion by 2028, with an 8.7% growth rate. Future growth is expected to be influenced by gamification, sustainable investing, increased focus on retirement planning, improved internet accessibility, and reduced operational costs. Emerging trends include blockchain adoption, AI-driven services, personalized offerings, fintech integration, and advanced analytics tools.
Which Key Drivers Are Propelling The Discount Brokerage Market's Growth?
The rise in the number of retail investors is anticipated to drive the growth of the discount brokerage market. This is linked to the increasing availability of technology-based platforms that make investing more accessible to a wider audience. Discount brokerages offer lower fees, which reduces the cost of trading, allowing more people to participate in the stock market and manage their investments independently. According to the World Economic Forum, retail investors accounted for 52% of global assets under management in 2021, and this figure is projected to rise to more than 61% by 2030.
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What Are The Key Segments Within The Global Discount Brokerage Market?
The discount brokerage market covered in this report is segmented –
1) By Mode: Online Discount Brokerage Service, Offline Discount Brokerage Service
2) By Service: Order Execution And Advisory, Discretionary, Online Trading Platforms, Education And Investor Resources
3) By Commission: Commission-Free Brokers, Fixed Commission Brokers
4) By Application: Individual, Enterprise, Government Agencies
How Are New Trends Impacting The Size Of The Discount Brokerage Market?
Discount brokerage companies are focusing on developing advanced web-based trading platforms to improve trading efficiency. HDFC Securities, an Indian financial services firm, launched HDFC SKY in September 2023, a mobile app offering a flat pricing model for intraday and delivery trades. The app provides access to a range of investment options and integrates advanced technology to streamline trading processes.
Which Region Drives The Highest Growth In The Discount Brokerage Market?
South America was the largest region in the discount brokerage market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the discount brokerage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
