Online Trading Platform Market (By Product Type: Commissions, Transaction Fees, Other; By Component: Software, Services; By Application: Institutional Investors, Retail Investors) - Global Industry Analysis, Market Size, Opportunities and Forecast 2020 - 2027
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The market for online trading platform is expected to grow at a CAGR of around 5.6% from 2020 to 2027 and expected to reach the market value of around US$ 26.0 Bn by 2027.
Online Trading Platforms are designed software for trading including opening, closing, and managing market positions through a financial intermediary such as an online broker. Online trading platforms are offered by brokers either for free or at a discount rate in exchange for maintaining a funded account and/or making a specified number of trades per month. These platforms offer software tools used to manage and execute market positions. Online trading platforms range from basic order entry screens for beginner investors advanced traders to complex and sophisticated toolkits with live streaming quotes and charts for. Furthermore, these platforms enable investors and traders to place trades and monitor accounts through financial intermediaries. Moreover, online trading platform may inculcate features like real-time quotes, charting tools, news feeds, and even premium research.
Market Dynamics
The rising interest of traders and investors, especially retail investors towards the investment is driving the market growth. Availability of a major range of platforms from basic order entry screens for the beginner investors to advanced toolkits with live streaming charts and quotes for advanced traders is supporting the market growth. Additionally, technological advancements have changed the investing world by enabling the ability to trade stocks from home in real-time, and often for zero commission is further bolstering the regional market value.
On the other hand, the risk associated with the investment in the market is projected to hinder the growth to an extent over the estimated timeframe from 2020 to 2027.
Segment Instance
North America accounted for the maximum revenue share in the global online trading platform market
The presence of the high-income population in the developed economies of the region including the US and Canada is supporting the regional market value. The presence of well-established players from almost all industry verticals is propelling the regional market value. Additionally, advance and practical education policies are supporting the raised awareness about online trading and trading platforms. The awareness among the people about the trading as well as the presence of the largest stock exchange (The New York Stock Exchange) with an equity market capitalization of over 25 trillion U.S. dollars in April 2020 is additionally propelling the regional market value. Furthermore, the American multinational financial services corporation, Nasdaq, Inc. owns and operates the Nasdaq stock market in the United States and eight European Stock Exchanges including Armenia Securities Exchange, Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland, Nasdaq Riga, Nasdaq Stockholm, Nasdaq Tallinn, and Nasdaq Vilnius. .
Asia Pacific is projected to exhibit fastest growth over the forecast period from 2020 to 2027
The rising expansion of major players in the region, particularly in the developing economies which can provide major opportunities to grow and expand in the near future is the factor propelling the regional market value. For instance, according to Klynveld Peat Marwick Goerdeler (KPMG) report, Indian fintech startups have secured funding of around US$1.7 billion in the first six months of 2020, which is almost double from last year’s US$726.6 million, despite the ongoing Covid-19 pandemic. Additionally, the increasing disposable income along with the rising middle-class population is supporting the growth of retail investors in the regional market.
Key Market Players
The players profiled in the report include AAX, Ally Invest, BitPay, Charles Schwab, E*TRADE, ErisX, Fidelity, Huobi Group, Interactive Brokers, MarketAxess, Merrill Edge, Octagon Strategy Limited, Plus500, Robinhood, TD Ameritrade, and Tradestation.
Market Segmentation
Market By Product Type
Commissions
Transaction Fees
Other Related Service Fees
Market By Component
Software
Services
Market By Application
Institutional Investors
Retail Investors
Market By Geography
North America
- U.S.
- Canada
Europe
- U.K.
- Germany
- France
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Rest of Latin America
Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa