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The security brokerage and stock exchange services market is estimated to grow at a CAGR of 8.92% between 2022 and 2027. The market size is forecasted to increase by USD 690.6 billion. The growth of the market depends on several factors, including the increasing demand for ETFs, the growing demand for investment opportunities, and the rising popularity of social trading.
This security brokerage and stock exchange services market report extensively covers market segmentation by channel (offline and online), type (derivatives and commodities brokerage, equities brokerage, bonds brokerage, stock exchanges, and others), and geography (North America, 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.
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The growing demand for investment opportunities is notably driving the market growth, although factors such as the increase in regulatory compliance with trading may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for investment opportunities is the key factor driving the growth of the global security brokerage and stock exchange services market. Investment opportunities are increasing due to investors' demand to improve their capital. This was mainly due to changing economic conditions, which resulted in low-interest rates and limited traditional investment opportunities for investors. Some of the most popular investment options include stocks, bonds, mutual funds, real estate, and certificates of deposit (CDs). Stocks are the ownership rights of companies listed on financial markets. For example, investors who bought shares in Amazon and Tesla a few years ago saw their investments grow significantly because those companies performed well. Mutual funds are a collective pool of money from investors that invest in stocks, bonds, and other securities. These are managed by an investment company and can offer diversification and professional management to investors who do not have the expertise or time to manage their portfolios.
Real estate investments offer the potential for capital growth through the increased value of the property over time or rental income. This is a long-term option that is favored by investors who are not seeking instant gains. CDs are fixed-term deposits wherein the investor agrees to hold the funds with the bank for a fixed period in return for a higher interest rate than a savings account. CDs serve as a low-risk investment option that can offer long-term returns. Thus, the above-mentioned factors are expected to drive the growth of the global security brokerage and stock exchange services market during the forecast period.
The rising adoption of robo-advisors for managing investment portfolios for investors is the primary trend shaping the global security brokerage and stock exchange services market growth. Robo-advisors are computer algorithms designed to provide automated investment recommendations and portfolio management services without the need for human intervention. These systems use artificial intelligence (AI) and machine learning algorithms to analyze market data, identify potential investment opportunities, and provide personalized investment advice to investors. The rise of robo-advisors in the security brokerage and stock exchange services market can be attributed to several factors. Robo-advisors have lower fees compared to traditional financial advisors. Investors can save more money on management fees, commissions, and other charges, making robo-advisors an attractive option for those seeking to invest with a limited budget. Robo-advisors are popular among investors who want to have greater control and transparency over their investments.
These systems allow investors to customize their investment portfolios according to their risk tolerance, investment goals, and preferences. They can track their portfolio performance in real-time, access account information, and modify their investments from anywhere using a mobile or web application. Another reason robo-advisors are gaining traction is that they can leverage big data and machine learning algorithms to analyze market trends and predict investment outcomes. This enables robo-advisors to provide more accurate investment recommendations and minimize the risk of investment losses. Thus, the above-mentioned factors are expected to fuel the growth of the global security brokerage and stock exchange services market during the forecast period.
Increase in regulatory compliance with trading is a major challenge impeding the growth of the global security brokerage and stock exchange services market. The increasing regularity of trade compliance is placing a heavy strain on the global securities brokerage and exchange services market. These strict regulations are intended to ensure the integrity, transparency, and fairness of the trading system, but they can also have a negative impact on the global securities brokerage and exchange services market. One of the main problems facing brokerage firms and exchanges is the increasing cost of compliance.
These regulations often require complex and costly procedures that must be followed to remain compliant, which includes hiring additional staff, investing in new systems and technology, and conducting ongoing training to ensure that all employees stay up to date with the newest regulations and procedures. This increases the expenses incurred in complying with these regulations and is expected to negatively impact on the profitability and sustainability of brokerage firms and stock exchanges during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Security Brokerage And Stock Exchange Services Market Customer Landscape
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.
Ameriprise Financial Inc. - The company offers security brokerage and stock exchange services such as stocks, bonds, mutual funds, and exchange-traded funds.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the offline segment will be significant during the forecast period. Offline mode trading allows investors to work with experienced professionals and get personalized guidance based on their investment style and goals. In the offline mode, investors have access to a range of investment opportunities, including shares, bonds, and mutual funds.
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The offline segment was valued at USD 818.36 billion in 2017 and continued to grow until 2021. One of the main advantages of offline mode trading is the ability to negotiate the price of a security, which is not always possible through online trading. This can lead to better returns for investors who have a skillful broker to guide their decisions. Moreover, brokerages often offer comprehensive research and analysis tools to help investors make informed investment decisions. These security brokerage and stock exchange services can include technical analysis, financial modeling, and access to company reports. This access provides investors with a deep understanding of investment opportunities and allows them to make more informed choices. Such factors will increase the segment growth during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In this region, the security brokerage and stock exchange services market in North America is expected to witness significant growth during the forecast period. The region has a robust financial industry, advanced infrastructure, and a highly skilled workforce, making it an attractive destination for investors and businesses. Stock exchanges in North America, such as the New York Stock Exchange (NYSE) and the NASDAQ, are some of the most well-known and active in the around the globe. Such factors will drive the market growth in this region during the forecast period.
The COVID-19 pandemic had a negative impact on the regional security brokerage and stock exchange services market in 2022. However, in 2021, vaccination drives were initiated, which led to the reopening of several industries, including the stock trading industry and even offline trading platforms. As more individuals are getting vaccinated and the number of COVID-19 cases continues to decline, investors are becoming more confident in the stock markets. This increased confidence has led to a surge in trading activity, resulting in higher revenues for brokerage firms. Such factors are expected to propel the growth of the regional security brokerage and stock exchange services market during the forecast period.
The security brokerage and stock exchange services 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.
Technavio categorizes the global security brokerage and stock exchange services market as a part of the global specialized consumer services market within the globally diversified consumer services market. The parent market, the global specialized consumer services market, covers revenue generated by consumer service providers, including residential services, home security services, legal services, personal services, renovation, and interior design services, consumer auction services, wedding services, and funeral services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Security Brokerage And Stock Exchange Services Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.92% |
Market growth 2023-2027 |
USD 690.6 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.45 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Japan, India, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ameriprise Financial Inc., Bank of America Corp., BSE Ltd., Euronext N.V., Hong Kong Exchanges and Clearing Ltd., Intercontinental Exchange Inc., JPMorgan Chase and Co., Morgan Stanley, Nasdaq Inc., National Stock Exchange of India Ltd., Raymond James Financial Inc., Shanghai Stock Exchange, State Street Corp., StoneX Group Inc., The Charles Schwab Corp., The Goldman Sachs Group Inc., The Northwestern Mutual Life Insurance Co., The Vanguard Group Inc., Wells Fargo and Co., and ICBC Co. 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, and Market condition analysis for the 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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Channel
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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