The securities brokerage and stock exchange services market has seen considerable growth due to a variety of factors.
• The market for securities brokerage and stock exchange services has seen robust growth in the past few years. It is projected to expand from $2050.81 billion in 2024 to $2205.52 billion in 2025, with a compound annual growth rate (CAGR) of 7.5%.
The historical growth can be attributed to factors such as an increasing demand for investment opportunities, demographic shifts and changes in investor behavior, the onset of high-frequency trading, and a surge in demand for exchange-traded funds (ETFs).
The securities brokerage and stock exchange services market is expected to maintain its strong growth trajectory in upcoming years.
• Over the next few years, the market size of securities brokerage and stock exchange services is anticipated to witness robust growth, reaching $2982.8 billion by 2029, growing at a Compound Annual Growth Rate (CAGR) of 7.8%.
Factors driving this growth include developments in global regulations, increased focus on cybersecurity, changing investor preferences, initiatives in cross-border trading, and the use of tokenized securities. Foreseen trends in this timeframe encompass algorithmic trading, participation of retail investors, integration of ESG investing, analysis of market data, and cross-border trading activities.
The projected expansion of the security brokerage and stock exchange markets is fueled by anticipated economic growth and wealth accumulation. This refers to the escalation of a nation's goods and services production over time, which leads to increased income levels and better living standards for its residents. Economic growth and wealth accumulation enhances disposable income, resulting in a larger engagement in financial markets and an increased demand for securities brokerage and stock exchange services. For example, as reported by the UK's Office for National Statistics in September 2024, the UK's GDP is estimated to have risen by 0.5% during the second quarter of 2024, from April to June, a downward revision from the initially estimated increase of 0.6%. Therefore, it's clear that the progress of the security brokerage and stock exchange services markets is spurred on by economic growth and wealth accumulation.
The securities brokerage and stock exchange services market covered in this report is segmented –
1) By Type: Derivatives And Commodities Brokerage, Stock Exchanges, Bonds Brokerage, Equities Brokerage, Other Stock Brokerage
2) By Type of Establishment: Exclusive Brokers, Banks, Investment Firms, Other Type of Establishments
3) By Mode: Online, Offline
Subsegments:
1) By Derivatives And Commodities Brokerage: Futures Contracts, Options Trading, Commodity Trading
2) By Stock Exchanges: National Exchanges, Regional Exchanges, Over-The-Counter (OTC) markets
3) By Bonds Brokerage: Corporate Bonds, Municipal Bonds, Government Bonds
4) By Equities Brokerage: Common Stocks, Preferred Stocks, Exchange-Traded Funds (ETFs)
5) By Other Stock Brokerage: Foreign Exchange Trading, Investment Advisory Services, Margin Trading Services
In the securities brokerage and stock exchange services markets, notable enterprises are beginning to utilise innovative technology such as the Brokerage as a Service (BaaS) solution. This technology provides a boost in accessibility, optimizes operations, and broadens their network of clients. BaaS is a cloud-based platform that gives financial institutions, fintech firms, and other third parties the ability to deliver brokerage and trading services without the necessity for building their own foundation of infrastructure. For example, HDFC Securities, a financial services company from India, rolled out HDFC FinX in August 2024. This BaaS solution facilitates banks, fintech organisations, and other bodies to offer consolidated trading services. It makes this possible by integrating HDFC's trading app, HDFC SKY, through the use of APIs and SDKs, thereby allowing partners to give a seamless trading experience without the need for extensive development. HDFC's platform offers a wide array of revenue-sharing models, inclusive of brokerage revenue sharing, hybrid models, and referral-only options.
Major companies operating in the securities brokerage and stock exchange services market include:
• Bank of America Corporation
• Northwestern Mutual Life Insurance Company
• INVEST Financial Corporation
• Ameriprise Financial Services Inc.
• Edward Jones & Co. L.P.
• Raymond James Financial Inc.
• Genworth Financial Inc.
• Wells Fargo Advisors LLC
• H.D. Vest Financial Services Inc.
• Ameritas Investment Corp.
• Associated Securities Corporation
• Commonwealth Financial Network Inc.
• Aura Financial Services Inc.
• Cambridge Investment Research Inc.
• Lincoln Investment Planning Inc.
• Geneos Wealth Management Inc.
• Cadaret Grant & Co. Inc.
• Berthel Fisher & Company Financial Services Inc.
• First Allied Securities Inc.
• Capital Financial Group Inc.
• Investacorp Inc.
• InterSecurities Inc.
• Capital Analysts Incorporated
• Investment Centers of America Inc.
• Investors Capital Corporation
North America was the largest region in the securities brokerage and stock exchange services in 2024. South America was the second largest region in the securities brokerage and stock exchange services. The regions covered in the securities brokerage and stock exchange services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.