The electronic (e) brokerages market has seen considerable growth due to a variety of factors.
• The electronic (E) brokerages market has seen rapid expansion. It will grow from $12.01 billion in 2024 to $13.31 billion in 2025, with a CAGR of 10.8%.
This growth is driven by lower transaction costs, higher internet penetration, financial crises and market volatility, regulatory changes, and increasing financial literacy.
The electronic (e) brokerages market is expected to maintain its strong growth trajectory in upcoming years.
• The electronic (E) brokerages market is projected to reach $19.91 billion by 2029, with a CAGR of 10.6%.
This growth is driven by economic trends, regulatory support, sustainability in investing, demographic shifts, and demand for alternative investments. Trends will include enhanced security, better user experience, robo-advisory services, fintech innovation, and AI integration.
The growing number of millennial and Gen Z investors is expected to fuel the electronic (E) brokerage market's growth. These groups are highly engaged in investing due to their tech-savvy nature, easy access to financial data, and interest in socially responsible investing. E-brokerages cater to them by offering user-friendly platforms with low fees and greater transparency. According to Broadridge Financial Solutions, in May 2024, Gen-Z and Millennials significantly increased their equity ownership, with Gen-Z's participation rising from 0.2% to 0.4% and Millennials' ownership more than doubling from 2% to 6%. This demographic shift is expected to propel the growth of the E-brokerage market.
The electronic (E) brokerages market covered in this report is segmented –
1) By Service Provider: Full Time Broker, Discounted Broker
2) By Ownership: Privately Held, Publicly Held
3) By End User: Retail Investor, Institutional Investor
Subsegments:
1) By Full-Time Broker: Traditional Full-Service Brokers, Online Full-Service Brokers With Personalized Advice, Wealth Management And Investment Advisory Services, Full-Time Brokers With Managed Portfolios And Research, Full-Time Brokers Offering Retirement And Tax Planning Services
2) By Discounted Broker: Online Discount Brokers With Low Commission Fees, Self-Directed Discount Brokers, Robo-Advisors, Discount Brokers Offering Basic Trading Platforms, Mobile-Based Discount Brokerage Services
Leading companies in the electronic brokerage market are developing AI-powered trading platforms to improve trading efficiency, offer personalized investment strategies, and enhance the overall user experience. These platforms utilize artificial intelligence and machine learning algorithms to analyze market data, forecast trends, and execute trades with precision and efficiency. For example, in January 2023, Octanom Tech Pvt. Ltd., an Indian fintech firm, launched Hedged, an e-brokerage platform that provides sophisticated investment strategies and hedged options trades. The platform includes the Nifty Crash Meter, a tool that predicts market fluctuations and helps investors adjust their portfolios proactively.
Major companies operating in the electronic (E) brokerages market are:
• Fidelity Investments Inc.
• The Charles Schwab Corporation
• Ally Invest Securities LLC
• TD Ameritrade Inc.
• Interactive Brokers LLC
• E*TRADE Financial Holdings LLC
• Robinhood Markets Inc.
• IG Group Holdings plc
• Plus500 Ltd
• Saxo Bank A/S
• eToro Group Ltd
• TradeStation Group Inc.
• Questrade Inc.
• Pepperstone Group Limited
• Xtrade Europe Ltd
• Webull Financial LLC
• NinjaTrader LLC
• DEGIRO B.V.
• Stocktrade
• eOption
• Arab National Bank
• tastyworks Inc.
• Firstrade Securities Inc.
• Nippon Life India Asset Management Limited
North America was the largest region in the electronic (E) brokerages market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electronic (E) brokerages market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.