Online Stock Brokerages in the US - Market Research Report (2014-2029)

Taking stock: Stabilization of the economy and an improved stock market will spur long-term demand

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

Online Stock Brokerages are expected to grow through the end of 2023. Revenue is expected to inch upward at a CAGR of 0.3% to an estimated $10.7 billion through the end of 2023, including an estimated 5.1% growth in 2023. Online brokers gained customers at an accelerating pace during the same period as more investors left their brokers and started trading online. Despite the recession, brokers endured revenue growth as more investors made trades amid market volatility. In 2020, due to the spread of COVID-19, people stayed indoors to avoid contracting the virus. This led to a collapse in spending on travel and other discretionary items, which caused a spike in the personal savings rate and led to a rise in young investors through online brokerages. With the sudden spike in new trading accounts, total trading volume and internet traffic skyrocketed, which bolstered demand for online brokerage services and helped stabilize revenue, as exemplified in 2020 when revenue grew 8.2%. However, larger growth was offset by high inflation, which cut consumers' propensity to invest. In 2023, profit, measured as earnings before interest and taxes, is expected to account for 11.6% of revenue.

Online stock brokerages operate online websites that act as agents in the buying and selling of stocks or other securities. Brokers primarily concentrate on stock brokerage while also offering services for other types of securities.