The scope of the recent study, titled 'Social Trading Platform Market Forecast to 2028 - COVID-19 Impact and Analysis - by Platform (PC and Mobile), End User (Individual Traders and Professional Traders), and Asset Class (Equity, Commodity, Derivatives, Crypto, and Others),' includes the description of factors fueling the market growth, estimation and forecast of revenue, and identification of significant market players and their key developments, along with providing market share analysis.
The social trading platform market is projected to reach US$ 3,774.17 million by 2028 from US$ 2,229.56 million in 2021. It is expected to register a CAGR of 7.8% from 2021 to 2028.
Social trading is a type of investment that allows users to watch how their peers and trading professionals act to duplicate or copy their trading techniques. It takes very little financial market understanding and saves money as compared to hiring traditional wealth managers. It follows social media norms, which are primarily communication, information sharing, mutual assistance, and collaboration. Traders can either mimic other people's deals or deploy their funds proportionately in the same portfolio. Social trading is a method of assessing financial data that involves observing other traders and comparing and imitating their approaches and plans. As a result, the beginners' trading game improves while the chance of losing money decreases.
The demand for social trading was prevalent before the COVID-19 pandemic due to the growing Internet penetration in North America. As per Digital 2019 Reports published by Data Reportal in January 2019, Internet users in the US grew by almost 9% every year, reaching more than 310 million users in January 2019. Thus, the rising need for internet supported the social trading platform market growth in North America before the COVID-19 pandemic.
In 2020, the increase in the unemployment rates hindered the rise of the social trading platform market. According to Pew Research Center, the economic downturn across the region resulted in an increase in unemployed North Americans by more than 14 million in 2020 (from 6.2 million in February 2020 to 20.5 million in May 2020). As a result, the US unemployment rate shot up from 3.8% in February 2020. The rise in unemployed workers due to the pandemic negatively impacted the trading industry. Therefore, the overall impact of the COVID-19 pandemic on the social trading platform market in North America has been negative.
The online trading industry is expanding significantly with the evolution of advanced technologies. Due to the COVID-19 pandemic, the online trading pattern strengthened in 2020. According to the article published by Chatbots Life, it has also been observed that over 2.14 billion people worldwide bought goods and services online in 2021, which resulted in the significant evolvement of the online trading industry globally. Due to this, a challenge for traders to keep up with the pace of change to stay current and process every task is also increasing. Thus, integrating AI-based chatbots is essential for trading organizations to enhance the customer experience and productivity, contributing to the social trading platform market growth.
Based on the platform, the social trading platform market is segmented into PC and mobile. The trading apps in mobile have made life easier for the traders as well as stock brokers. Mobile trading has become a growing rage amongst young traders as it has made the entire trading experience much efficient. Thus, growth in mobile segment is expected to drive the social trading platform market over the forecast period.
Based on end users, the market is segmented into individual traders and professional traders. Retail investors typically invest in stocks and bonds but mostly in stocks since bonds are difficult to trade on most trading platforms Retail individual does trading through mobile based applications owing higher reliability and easy to operate. Thus, associated advantages and growing trend among young population is fueling the individual traders to invest in exchange market which is further anticipated to drive the social trading platform market growth.
Based on asset class, the market is segmented into equity, commodity, derivatives, crypto, and others. Increase in demand for crypto currency among banks, and financial institutions and untapped potential from emerging economies are expected to provide lucrative growth prospects for adopting crypto. Growing demand for application based platform is the most convenient medium for trading the crypto which is further fueling the social trading platform market over the forecast period.
The social trading platform market, based on geography, is segmented primarily into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America accounted for the largest share in the global augmented social trading platform market
Reasons to Buy
The social trading platform market is projected to reach US$ 3,774.17 million by 2028 from US$ 2,229.56 million in 2021. It is expected to register a CAGR of 7.8% from 2021 to 2028.
Social trading is a type of investment that allows users to watch how their peers and trading professionals act to duplicate or copy their trading techniques. It takes very little financial market understanding and saves money as compared to hiring traditional wealth managers. It follows social media norms, which are primarily communication, information sharing, mutual assistance, and collaboration. Traders can either mimic other people's deals or deploy their funds proportionately in the same portfolio. Social trading is a method of assessing financial data that involves observing other traders and comparing and imitating their approaches and plans. As a result, the beginners' trading game improves while the chance of losing money decreases.
Impact of COVID-19 Pandemic on Social Trading Platform Market
The demand for social trading was prevalent before the COVID-19 pandemic due to the growing Internet penetration in North America. As per Digital 2019 Reports published by Data Reportal in January 2019, Internet users in the US grew by almost 9% every year, reaching more than 310 million users in January 2019. Thus, the rising need for internet supported the social trading platform market growth in North America before the COVID-19 pandemic.
In 2020, the increase in the unemployment rates hindered the rise of the social trading platform market. According to Pew Research Center, the economic downturn across the region resulted in an increase in unemployed North Americans by more than 14 million in 2020 (from 6.2 million in February 2020 to 20.5 million in May 2020). As a result, the US unemployment rate shot up from 3.8% in February 2020. The rise in unemployed workers due to the pandemic negatively impacted the trading industry. Therefore, the overall impact of the COVID-19 pandemic on the social trading platform market in North America has been negative.
The online trading industry is expanding significantly with the evolution of advanced technologies. Due to the COVID-19 pandemic, the online trading pattern strengthened in 2020. According to the article published by Chatbots Life, it has also been observed that over 2.14 billion people worldwide bought goods and services online in 2021, which resulted in the significant evolvement of the online trading industry globally. Due to this, a challenge for traders to keep up with the pace of change to stay current and process every task is also increasing. Thus, integrating AI-based chatbots is essential for trading organizations to enhance the customer experience and productivity, contributing to the social trading platform market growth.
Based on the platform, the social trading platform market is segmented into PC and mobile. The trading apps in mobile have made life easier for the traders as well as stock brokers. Mobile trading has become a growing rage amongst young traders as it has made the entire trading experience much efficient. Thus, growth in mobile segment is expected to drive the social trading platform market over the forecast period.
Based on end users, the market is segmented into individual traders and professional traders. Retail investors typically invest in stocks and bonds but mostly in stocks since bonds are difficult to trade on most trading platforms Retail individual does trading through mobile based applications owing higher reliability and easy to operate. Thus, associated advantages and growing trend among young population is fueling the individual traders to invest in exchange market which is further anticipated to drive the social trading platform market growth.
Based on asset class, the market is segmented into equity, commodity, derivatives, crypto, and others. Increase in demand for crypto currency among banks, and financial institutions and untapped potential from emerging economies are expected to provide lucrative growth prospects for adopting crypto. Growing demand for application based platform is the most convenient medium for trading the crypto which is further fueling the social trading platform market over the forecast period.
The social trading platform market, based on geography, is segmented primarily into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America accounted for the largest share in the global augmented social trading platform market
Reasons to Buy
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global social trading platform market
- Highlights key business priorities in order to assist companies to realign their business strategies
- The key findings and recommendations highlight crucial progressive industry trends in the global social trading platform market, thereby allowing players across the value chain to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution
Table of Contents
1. Introduction
3. Research Methodology
4. Social Trading Platform Market Landscape
5. Social Trading Platform Market - Key Market Dynamics
6. Social Trading Platform Market -Regional Analysis
7. Social Trading Platform Market Analysis - By Platform
8. Social Trading Platform Market - By End user
9. Social Trading Platform Market - By Asset Class
10. Social Trading Platform Market - Geographic Analysis
11. Social Trading Platform Market- COVID-19 Impact Analysis
12. Industry Landscape
13. Company Profiles
14. Appendix
List of Tables
List of Figures
Executive Summary
The global social trading platform market is expected to grow from US$ 2,229.56 million in 2021 to US$ 3,774.17 million by 2028. It is estimated to grow at a CAGR of 7.8% from 2021 to 2028.With the growing population, the number of internet users increased significantly. There are almost 4.7 million internet users worldwide, i.e., 59% of the global population is net-savvy, as per the article published by the DataReportal in January 2021. Among this, 92.6% (4.3 million) users access the internet through mobile devices. The UAE, Denmark, and Sweden are a few countries with the highest internet penetration rate.
Until 2020, Asia Pacific (APAC) had the most extensive user base with over 2.5 million Internet users, followed by Europe with almost 720 million users, as per the article published by Yahoo Finance. In 2020, China held the leading market share worldwide, followed by the US and India, as per the article published by Yahoo Finance. China had more than 854 million users, and India has around 560 million users, as per the article published by Yahoo Finance.
A few Middle East & Africa countries, such as Qatar, Oman, and Kuwait, are still in the starting phase of digitalization and the internet penetration is relatively low. However, with increasing awareness, the number is increasing continuously. The significant surge in the internet user base enables industries to transform their business to the digital platform. Therefore, trading companies opt for social trading with the growing internet use, which is the cost-effective approach for trading. Also, during the COVID-19 outbreak, conducting online trading was the best-suitable medium. Thus, growing internet usage will contribute to the social trading platform market growth.
Impact of COVID-19 Pandemic on Global Social Trading Platform Market
Due to the pre-COVID-19 pandemic situation, social trading platforms were prevalent in the growing digital transformation of financial institutes and banking solutions & services. For instance, in April 2019, according to the article published by Business Wire, the spending on digital transformation was US$ 1.18 trillion in 2019, an increase of 17.9% over 2018. The need for digital transformation supported the social trading platform market growth.
In 2020, the COVID-19 pandemic triggered social stress and led to economic disruptions worldwide. With the closure of production facilities and manufacturing units globally, the unemployment rate increased in several countries. These outbursts of the COVID-19 pandemic lead countries and the global economy towards recession. As the COVID-19 pandemic continued in 2020, it posed an exceptional challenge for an individual to spend over a social trading platform. Thus, the trading industry was negatively affected. Therefore, the overall COVID-19 impact on the social trading platform was negative in 2020.
Further, in 2021 and 2022, the relaxation of lockdown measures and gain in the employment rates positively impacted the social trading platform market growth. The increase in the trend of investment in cryptocurrency positively impacted market growth. According to the Free Press Journal, Bitcoin boomed and astonished the whole world, from approximately US$ 7,000 in March 2020 to more than US$ 54,000 till June 2021.
There was a negative impact on the social trading platform market, owing to the increase in the unemployment rates. However, the social trading platform market will grow due to increased investment in cryptocurrency during the forecast period, thereby creating further opportunities for the market.
Based on platform, the social trading platform market is bifurcated into PC and mobile. In 2021, the mobile segment led the market, accounting for the largest share. Based on end user, the market is bifurcated into individual traders and professional traders. In 2021, the individual traders segment accounted for the largest market share. Based on asset class, the market is segmented into equity, commodity, derivatives, crypto, and others. In 2021, the crypto segment accounted for the largest market share.
Geographically, the social trading platform market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). In 2021, North America accounted for the most prominent share in the market.
The overall social trading platform market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the social trading platform market with respect to all the segments. It also provides the overview and forecast for the market based on all the segmentation provided with respect to five major regions—North America, Europe, Asia Pacific, Middle East & Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. Participants in this process include industry experts, such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders, specializing in the social trading platform market.
The key companies operating in the social trading platform market are eToro; A-Trade; ZuluTrade; Tornado; MetaQuotes; PrimeXBT; Pepperstone Markets Limited; Tickmill; Octa Markets Incorporated; Assetgro Fintech Pvt. Ltd (Stockgro); Public Holding, Inc.; Naga Group AG; and Snowball X.
Companies Mentioned
- Etoro
- A-Trade
- Zulutrade
- Tornado
- Metaquotes
- Primexbt
- Pepperstone Markets Limited
- Tickmill
- Octa Markets Incorporated
- Assetgr- Fintech Pvt. Ltd (Stockgro)
- Public Holding, Inc.
- Naga Group AG
- Snowball X
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 163 |
| Published | March 2022 |
| Forecast Period | 2021 - 2028 |
| Estimated Market Value ( USD | $ 2229.56 Million |
| Forecasted Market Value ( USD | $ 3774.17 Million |
| Compound Annual Growth Rate | 7.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 13 |
