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The stockbroking market is estimated to grow at a CAGR of 9.32% between 2022 and 2027 and the size of the market is forecast to increase by USD 659.18 billion. The growth of the market depends on several factors, the need for market surveillance, favorable government regulations, and enhanced cash flow leading to business growth.
This report extensively covers market segmentation by mode of booking (offline and online), type (long-term trading and short-term trading), and geography (APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Stockbroking Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Stock market surveillance involves gathering trading data and then analyzing and monitoring this data to detect possible market abuse and other financial crimes. For Instance, in the UK, this includes insider trading, market manipulation, unlawful disclosure, and attempted manipulation. The increase in fraudulent trading has increased global concerns regarding market stability and integrity. Thus, the need for market surveillance is rising, which fuels the demand for stock market solutions capable of market surveillance and accelerating market growth. Therefore such drivers are contributing to the growth of the market during the forecast period.
The use of the online stock brokerage platform makes it much easier to track investments in real-time. These brokerage platforms have access to a robust set of tools and resources provided by various online stock brokerage platforms. Through these resources, they provide users with information that can be used for successful trading. Additionally, users of online trading platforms can easily monitor the performance of their assets thanks to real-time stock data. Online portals allow traders to track how well their investments are performing. It also offers traders to determine what changes are needed to improve results. Several online trading applications offer real-time capabilities for in-depth analysis of currency pairs, currency pair trading, and simplified trend analysis. Digital data allows marketers to look into their past business practices, learn from failures, and discover best past practices. Hence, these trends drive the growth of the global stockbroking market during the forecast period.
When two countries act against each other by placing restrictions on the imports of the opposing country a trade is done. Trade wars can be a reaction to protectionism, which mainly depends on government policies and actions to restrict international trade to protect domestic businesses and jobs from foreign competition, the government of any country usually takes protectionist actions. This action can be taken by governments to reduce or balance trade deficits. For instance, in 2016, the US complained about China's unfair trading practices. After that, the US initiated an investigation against the trade policies of China in 2017 and imposed tariffs on several Chinese products which were worth billions of dollars. These tariffs are mainly impacting the goods imported from various regions, such as the EU, Canada, China, and Mexico. After this traffic, Canada forced various temporary duties on steel and other products imported from the US. A trade war, which starts between two countries can majorly affect other countries that are not directly involved in the trade war. Therefore, it results in a decrease in international trade, which can impede the market during the forecast period.
The offline segment will account for a major share of the market's growth during the forecast period. Without the use of online platforms or electronic systems offline stockbroking is the traditional method of engaging in stock trading activities. Investors work with stockbrokers who act as an intermediate between traders and the stock exchange. Offline stockbroking includes communication, paper-based documentation, and personalized investment advice.
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The offline segment was valued at USD 711.72 billion in 2017 and continued to grow until 2021.?Offline stockbroking is still dominating the market due to the ease of use due to factors such as personalized services, extensive research, complex investment strategies, trust, and relationship building by the investors over time, also in the offline segment they can access initial public offerings or other restricted offerings which may not be readily available on an online brokerage platform. Due to the above-mentioned factors, the market in focus is expected to grow during the forecast period.
Based on type, the market has been segmented into long-term trading and short-term trading. The long-term trading segment will account for the largest share of this segment.? A trader holding an asset like an estate for a longer period is called long-term trading. Depending on the security type, long-term assets can be held for as short as one year or as long as 30 years or more. Long-term investment by individuals typically involves a holding period of at least 7-10 years, however, there is no absolute rule. For instance, when a company buys a stock or the debt of another company as an investment. An individual can buy and sell a stock if its value rises within a few weeks or months. Similarly, the same stock can be held for years and sold until it goes higher. Due to both long-term views and compounding power, individual investors can use the years until retirement to consider their risks. Thus contributing towards the growth of the market in focus during the forecast period.
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North America is estimated to contribute 34% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The stockbroking market in North America refers to the financial industry. Which are involved in buying and selling securities, such as stocks, bonds, and derivatives, on behalf of investors. North America has the dominant and the most developed stock markets in the world, centered primarily in the US and Canada. In North America, the stockbroking market includes the stock exchange, brokerage firms, online trading, regulatory bodies, investment products, and high-frequency trading.
In 2020, most countries, such as the US, Canada, and Mexico, among others, in North America were severely affected by the COVID-19 outbreak. However, in 2021 with the start of large-scale vaccination drives by the governments, the COVID-19 pandemic was sustained, and the lockdown was lifted. In 2022, the market in focus came back to normalcy. Thus, the factors such as the utilization of digital technology in borrowing and lending funds boost the growth of the stockbroking market in the region during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Angel One Ltd.:The company offers stockbroking services for mutual funds, IPO, stocks.
Morgan Stanley: The company offers stockbroking services through its subsidiary E-Trade.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The stockbroking market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Stockbroking Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.32% |
Market growth 2023-2027 |
USD 659.18 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.5 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, India, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Angel One Ltd., Axis Bank Ltd., Bank of America Corp., Barclays PLC, BNP Paribas, Citigroup Inc., Credit Suisse Group AG, Firstrade Securities Inc., FMR LLC, ICICI Bank Ltd., Interactive Brokers LLC, MetaQuotes Ltd., Morgan Stanley, Nomura Holdings Inc., Raymond James Financial Inc., The Charles Schwab Corp., The Goldman Sachs Group Inc., The Vanguard Group Inc., UBS Group AG, and Zerodha Broking Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Booking
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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