The discount brokerage market size has also shown strong growth in recent years, climbing from $23.6 billion in 2023 to $25.63 billion in 2024, with a CAGR of 8.6%. The historical growth can be attributed to the rise of zero-commission trades, the expansion of fractional shares, the increasing availability of cryptocurrency trading options, enhanced educational offerings, and rising disposable incomes. Looking ahead, the market is expected to continue its robust growth, reaching $35.76 billion in 2028, at a CAGR of 8.7%. This anticipated growth is driven by the use of gamification techniques, an increased focus on retirement planning and savings, a shift toward sustainable and impact investing, the expansion of high-speed internet access, and lower operational costs. Major trends that will shape the market include the adoption of blockchain technology, the integration of artificial intelligence, personalization of services, and the implementation of advanced analytics tools.
Major Driver In The Discount Brokerage Market
The increasing number of retail investors is projected to boost the growth of discount brokerage services. Retail investors, who are non-professional individuals investing in securities like stocks, bonds, and mutual funds for personal accounts, are being empowered by technology-based platforms that make investing more accessible. Discount brokerages allow retail investors to trade at reduced costs through lower fees, facilitating independent investment management. According to the World Economic Forum, retail investors accounted for 52% of global assets under management in 2021, with this figure expected to exceed 61% by 2030. The discount brokerage services market was valued at $66.73 billion in 2023, projected to reach $73.16 billion in 2024, and anticipated to grow to $97.11 billion by 2028, driven by the expanding number of retail investors.
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Discount Brokerage Market Competitive Landscape
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.
Key Discount Brokerage Market Trend
Major companies in the discount brokerage market are focused on creating advanced web-based trading platforms to enhance trading efficiency. A web-based trading platform is an online software application that enables users to buy and sell financial instruments, such as stocks, bonds, options, futures, and cryptocurrencies, via the internet. For example, in September 2023, HDFC Securities, an India-based financial services company, launched HDFC SKY. HDFC SKY is an all-in-one mobile app for discount brokerage featuring a flat pricing model for both intraday and delivery trades. It provides access to a variety of investment options and integrates advanced technology for a seamless trading experience.
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Global Discount Brokerage Market Segmentation
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
By Geography:The regions covered in the discount brokerage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
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 Discount Brokerage Global Market Report 2024 furnishes information about the global discount brokerage market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
