The stockbroking market has seen considerable growth due to a variety of factors.
• The stockbroking market has experienced rapid growth in recent years. It will expand from $42.22 billion in 2024 to $46.63 billion in 2025, at a CAGR of 10.4%.
Growth factors include the globalization of financial markets, the rise of retail investors, financial innovations, the growth of internet-based trading, and improved financial literacy.
The stockbroking market is expected to maintain its strong growth trajectory in upcoming years.
• The stockbroking market is expected to grow to $68.63 billion by 2029, with a CAGR of 10.1%.
The growth is driven by the increasing use of mobile trading apps, the expansion of robo-advisory services, sustainable investing, regulatory changes, and a greater focus on cybersecurity. Trends include AI and machine learning integration, blockchain involvement, financial inclusion, and increased collaboration with fintech companies.
The escalation in trading activities is predicted to drive the expansion of the stockbroking market further. Trading pertains to the purchase and sale of financial tools, commodities, or products to earn profits in various markets like stocks, forex, and commodities. The surge in trading activity stems from economic variances, enhanced trading locales, and augmented participation from investors. Stockbroking aids trading by providing market access, investment consultancies, and the implementation of buying and selling orders for investors. An illustration of this trend was seen in December 2023 when the Office for National Statistics, a UK government department, revealed that the portion of UK quoted shares owned by foreign investors hit an all-time high of 57.7% in 2022, an increase from 56.3% in 2020. This indicates a sustained pattern of escalating foreign ownership. Thus, the rise in trading activity stimulates the growth of the stockbroking market.
The stockbroking market covered in this report is segmented –
1) By Trading Type: Short-Term Trading, Long-Term Trading
2) By Type Of Broker: Full-Service Brokers, Discount Brokers, Robo-Advisors
3) By Mode: Offline, Online
4) By Services: Order Execution, Advisory, Discretionary, Other Services
5) By End User: Retail Investor, Institutional Investor
Subsegments:
1) By Short-Term Trading: Day Trading, Swing Trading, Scalping, High-Frequency Trading (HFT), Position Trading, Options And Futures Trading, Margin Trading
2) By Long-Term Trading: Buy And Hold, Value Investing, Dividend Investing, Growth Investing, Index Investing, Real Estate Investment Trusts (REITs), ETFs (Exchange-Traded Funds), Mutual Fund Investing
In the stockbroking market, prominent businesses are concentrating on the creation of novel services, such as stockbroking platforms, to establish a competitive advantage. Online services known as stockbroking platforms allow for buying and selling securities, managing investment portfolios, and providing market information. For example, in August 2023, an Indian software firm called PhonePe Private Limited introduced a stockbroking platform dubbed Share(dot)Market. This platform is fully integrated with the PhonePe application, offering clients the convenience of trading stocks directly from their accounts. It includes intuitive tools for monitoring investments, real-time updates on market activity, and customized advice to improve the overall trading experience.
Major companies operating in the stockbroking market are:
• JPMorgan Chase & Co
• Citigroup Inc.
• Wells Fargo & Company
• Morgan Stanley
• BNP Paribas SA
• The Goldman Sachs Group Inc.
• UBS Group AG
• Barclays Bank plc
• Fidelity Investments
• Charles Schwab Corporation
• Credit Suisse Group AG
• Merrill
• Nomura Holdings Inc.
• LPL Financial Holdings Inc.
• RBC Capital Markets
• T. Rowe Price Investment Services Inc.
• Interactive Brokers Inc.
• IG Group Holdings plc
• Oppenheimer Holdings Inc.
• Hargreaves Lansdown plc
• The Vanguard Group Inc.
• TradeStation
• Canaccord Genuity Group Inc.
North America was the largest region in the stockbroking market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the stockbroking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.