Covid-19 had a positive impact on the e-brokerage market in Spain. During the pandemic, Online Trading has been experiencing growth shown by the increased transaction volume it through e brokerage platforms. E brokerage refers to the selling of financial securities such as bonds, stocks, mutual funds, ETFs using the internet. Earlier there used to be banks and brokers who used to give brokerage services in the traditional brick and mortar form. Now there are various new entrants which use the e-commerce business model to give brokerage services to investors. Internet penetration in Spain has reached 84% for the year 2020. This has lead to favorable growth of e brokerage subscribers in Spain.
Spain is the third largest and one of the attractive investment markets in the EU region. In the year 2020, the GDP of Europe contracted by 8.3% and even more GDP of Spain contracted by 12.3%. the capital market of Spain also showed a likewise decline. The benchmark index named IBIX 35 declined by 15.45%. the banking and the hospitality sector suffered the most whereas, the health and energy sectors were impacted less. The market showed positive growth only in the later quarters of 2020.
The MiFID II which is the European Union requirement for technology-oriented investment services came into force from Jan 3rd, 2018. It demands the higher transparency and reporting obligation for various financial intermediaries including brokerage houses. In relation to the Forex market, e broker authorized from other European countries are also allowed to operate In Spain. But the reliability is more on e- brokers who are authorized by National Securities Market Association (CNMV) or through European Security and Market Authority
The brokerage market is closely related to financial market investments. The recent trend in savings habits of Spain shows the increasing figures. The saving reached a high of 31.17% in July 2020 where the pandemic resulted in higher savings. But the savings started to decrease in the last quarter of 2020 where savings was only 20% in Jan 2021. The savings alone do not contribute to the revenue in the e-brokerage market. To generate revenue the saving should be channelized to the capital market instrument. The data shows that most of the savings of Spaniards are directed toward financial products(54%) and real estate and property(39%). Pension plans are the most popular investment channelizing 14% of savings, followed by bank deposits (11%). The investment in equity shares comes in the third position
Researches' shows that around 43% of the population managed to save between 5000 to 15000 euros for the period so this average saver segment of the population is more targeted by e brokerage houses. Also, 10% managed to save 40,000 euros and more they should be targeted as high net worth customers. The researches also show that people from Aragon, Cantabria, Pais Vasco, and Rioja La have a high saving appetite.
Various multinational players are operating in the Spanish e brokerage market. Among them Interactive Broker, Saxo Bank, DEGIRO, TradeStation, eToro, Pro RealTime Trading, IG, CMC Market, iBroker, BBVA Trader are the most popular ones. . The most popular online broker is eToro which has crossed 20 million subscribers out of which 69% are from the European region. Many of the traditional brick and mortar traditional brokers are also opting for the online platform. The e-brokerage houses have a competitive advantage in terms of cost compared to their traditional counterparts. E brokerage houses spend heavily on marketing to acquire a higher customer base. Due to this intense competition is seen among the e-brokerage company in Spain to acquire a higher subscriber base. There are countless Forex brokers operating in Spain as they need not be authorized by CNMV or the European Security Market Authority. This also has led to scams and fraud in the forex brokerage so it is quintessential to background check the brokerage house before opting for one.
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Spain is the third largest and one of the attractive investment markets in the EU region. In the year 2020, the GDP of Europe contracted by 8.3% and even more GDP of Spain contracted by 12.3%. the capital market of Spain also showed a likewise decline. The benchmark index named IBIX 35 declined by 15.45%. the banking and the hospitality sector suffered the most whereas, the health and energy sectors were impacted less. The market showed positive growth only in the later quarters of 2020.
The MiFID II which is the European Union requirement for technology-oriented investment services came into force from Jan 3rd, 2018. It demands the higher transparency and reporting obligation for various financial intermediaries including brokerage houses. In relation to the Forex market, e broker authorized from other European countries are also allowed to operate In Spain. But the reliability is more on e- brokers who are authorized by National Securities Market Association (CNMV) or through European Security and Market Authority
Key Market Trends
The Financial Products contribute to highest percentage of Family assets of Spanish
The brokerage market is closely related to financial market investments. The recent trend in savings habits of Spain shows the increasing figures. The saving reached a high of 31.17% in July 2020 where the pandemic resulted in higher savings. But the savings started to decrease in the last quarter of 2020 where savings was only 20% in Jan 2021. The savings alone do not contribute to the revenue in the e-brokerage market. To generate revenue the saving should be channelized to the capital market instrument. The data shows that most of the savings of Spaniards are directed toward financial products(54%) and real estate and property(39%). Pension plans are the most popular investment channelizing 14% of savings, followed by bank deposits (11%). The investment in equity shares comes in the third position
The large chunk of average savers are most targeted segment for E brokerage
Researches' shows that around 43% of the population managed to save between 5000 to 15000 euros for the period so this average saver segment of the population is more targeted by e brokerage houses. Also, 10% managed to save 40,000 euros and more they should be targeted as high net worth customers. The researches also show that people from Aragon, Cantabria, Pais Vasco, and Rioja La have a high saving appetite.
Competitive Landscape
Various multinational players are operating in the Spanish e brokerage market. Among them Interactive Broker, Saxo Bank, DEGIRO, TradeStation, eToro, Pro RealTime Trading, IG, CMC Market, iBroker, BBVA Trader are the most popular ones. . The most popular online broker is eToro which has crossed 20 million subscribers out of which 69% are from the European region. Many of the traditional brick and mortar traditional brokers are also opting for the online platform. The e-brokerage houses have a competitive advantage in terms of cost compared to their traditional counterparts. E brokerage houses spend heavily on marketing to acquire a higher customer base. Due to this intense competition is seen among the e-brokerage company in Spain to acquire a higher subscriber base. There are countless Forex brokers operating in Spain as they need not be authorized by CNMV or the European Security Market Authority. This also has led to scams and fraud in the forex brokerage so it is quintessential to background check the brokerage house before opting for one.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET INSIGHTS AND DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- ING
- Renta4banco
- Bankinter
- DEGIRO
- BBVA Trader
- IC Market
- AVA Trade
- FP Market
- tastyworks
- Pepperstone*
Methodology
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