How Has the Discount Brokerage Market Size Evolved in Recent Years?
The discount brokerage market has seen considerable growth due to a variety of factors.
• The discount brokerage market has grown significantly in recent years. It will rise from $25.63 billion in 2024 to $27.9 billion in 2025, at a CAGR of 8.9%.
The growth can be attributed to zero-commission trades, fractional share offerings, the rise of cryptocurrency trading options, educational expansions, and increasing disposable income.
What are the Market Size and Expected Growth Rates for the Discount Brokerage Market?
The discount brokerage market is expected to maintain its strong growth trajectory in upcoming years.
• The discount brokerage market is expected to experience robust growth, reaching $38.79 billion in 2029 at a CAGR of 8.6%.
Growth drivers include the adoption of gamification, a focus on retirement planning and savings, the rise of sustainable investing, expanded internet access, and reduced operational costs. Major trends include the integration of blockchain, AI-driven personalization, fintech solutions, and advanced analytics.
Which Key Drivers Are Propelling The Discount Brokerage Market's Growth?
The increasing number of retail investors is expected to drive the growth of the discount brokerage market. Retail investors are individual investors who manage their investments independently, and their number has grown due to the rise of technology-based platforms. Discount brokerage services reduce the cost of trading for these investors by offering lower fees, making stock market participation more accessible. For instance, in February 2022, BNY conducted a survey of 2,000 U.S. retail investors, all with at least $10,000 in investible assets. The growing number of retail investors is thus fueling the growth of the discount brokerage market.
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
Subsegments:
1) By Online Discount Brokerage Service: Web-Based Platforms, Mobile Trading Apps, Robo-Advisory Services, Cryptocurrency Trading Platforms, Direct Market Access (DMA) Platforms
2) By Offline Discount Brokerage Service: Telephone-Based Brokerage, Branch-Based Brokerage Services, In-Person Advisory Services
3) By Hybrid Brokerage (Combination Of Offline And Online)
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What Trends Are Shaping The Discount Brokerage Market?
Companies in the discount brokerage market are focused on developing advanced web-based trading platforms to improve trading efficiency. A web-based trading platform is an online tool that allows users to buy and sell financial instruments over the internet. For example, in September 2023, HDFC Securities, an India-based financial services company, launched HDFC SKY, an all-in-one mobile app for discount broking with a flat pricing model for intraday and delivery trades. This app offers access to various investment options and advanced technology to ensure a seamless trading experience.
Who Are the Key Players In The Discount Brokerage Market?
Major companies operating in the discount brokerage market are:
• Fidelity Investments Inc.
• Charles Schwab Corporation
• Ally Financial Inc.
• TD Ameritrade Holding Corporation
• Interactive Brokers Group Inc.
• Merrill Lynch
• Pierce
• Fenner & Smith Incorporated
• SoFi Technologies Inc.
• Robinhood Markets Inc.
• IG Group Holdings plc
• Citadel Securities LLC
• NerdWallet Inc.
• Acorns Grow Inc.
• TradeStation Group Inc.
• Apex Fintech Solutions LLC
• Stash Financial Inc.
• Saxo Bank A/S
• Public Holdings Inc.
• Wealthfront Inc.
• Alice Blue Financial Services Private Limited
• Folio Investments Inc.
• OANDA Corporation
• eOption
• Tastytrade Inc.
• Zacks Investment Research Inc.
What Are The Regional Insights Into The Discount Brokerage Market?
South America was the largest region in the discount brokerage market in 2024. 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.
