Online trading is a form of automation, which uses computer program to execute a defined set of instructions or rules that include buying or selling of an asset with regards to the varying market data. Defined sets of instructions or rules are based on timing, quantity, price, or any mathematical model. It offers several benefits to market participants such as it executes trades at best possible prices; simultaneous automated checks on multiple market conditions; trades timed correctly and instantly; and reduced transaction costs, owing to lack of human intervention. A trading platform is a program that allows investors and traders to position trades through financial intermediaries and to track accounts. Trading platforms also come bundled with other services, such as quotes in real-time, charting software, news feeds, and even premium analysis. The technology used for trading is known as a trading platform, such as opening, closing, and controlling market positions through an intermediary, say, an online broker.
Factors such as surge in AI in form of robo-advisory; need for market surveillance; rise in demand for customized trading platform from end users; and simple and less expensive trading primarily drive growth of the global online trading platform market. However, stringent regulatory guidelines of trading practices hamper the market growth to some extent. On the other hand, rise in demand for cloud-based solutions and ongoing technological advancements and integration of trading platform on smartphones are expected to provide lucrative opportunities for the market growth during the forecast period. In addition, rise in demand for cloud-based solutions is anticipated to be opportunistic for the market growth during the forecast period.
The global online trading platform market report covers various parameters of the trading industry. The market is segmented on the basis of component, type, deployment model, application, and region. By component, it is segmented into platform and services. By type, it is divided into commissions and transaction fees. By deployment model, it is categorized into on-premises and cloud. By application, it is categorized into institutional investors and retail investors. Region wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.
This report features information on online trading offered by key vendors. Based on region, the global online trading platform market is segmented across North America, Europe, Asia-Pacific, and LAMEA. Further, the report also highlights the altered strategies of key market players to improve the market share and sustain competition.
Key players operating in the market include Td Ameritrade Holding Corporation, Interactive brokers, E-Trade, Profile Software, Chetu, Inc., Empirica, Pragmatic Coder, EffectiveSoft Ltd., Charles Schwab, and Devexperts llc..
Factors such as surge in AI in form of robo-advisory; need for market surveillance; rise in demand for customized trading platform from end users; and simple and less expensive trading primarily drive growth of the global online trading platform market. However, stringent regulatory guidelines of trading practices hamper the market growth to some extent. On the other hand, rise in demand for cloud-based solutions and ongoing technological advancements and integration of trading platform on smartphones are expected to provide lucrative opportunities for the market growth during the forecast period. In addition, rise in demand for cloud-based solutions is anticipated to be opportunistic for the market growth during the forecast period.
The global online trading platform market report covers various parameters of the trading industry. The market is segmented on the basis of component, type, deployment model, application, and region. By component, it is segmented into platform and services. By type, it is divided into commissions and transaction fees. By deployment model, it is categorized into on-premises and cloud. By application, it is categorized into institutional investors and retail investors. Region wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.
This report features information on online trading offered by key vendors. Based on region, the global online trading platform market is segmented across North America, Europe, Asia-Pacific, and LAMEA. Further, the report also highlights the altered strategies of key market players to improve the market share and sustain competition.
Key players operating in the market include Td Ameritrade Holding Corporation, Interactive brokers, E-Trade, Profile Software, Chetu, Inc., Empirica, Pragmatic Coder, EffectiveSoft Ltd., Charles Schwab, and Devexperts llc..
Key Market Segments
By Component
- Platform
- Services
By Type
- Commissions
- Transaction Fees
By Deployment Mode
- On-premise
- Cloud
By Application
- Institutional Investors
- Retail Investors
By Region
- North America
- U.S.
- Canada
- Europe
- U.K.
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Chetu
- Devexperts
- EffectiveSoft Ltd.
- E-Trade
- Interactive Brokers
- Pragmatic Coders
- Profile Software
- TD Ameritrade
- Charles Schwab Corp.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: ONLINE TRADING PLATFORM MARKET, BY COMPONENT
CHAPTER 5: ONLINE TRADING PLATFORM MARKET, BY TYPE
CHAPTER 6: ONLINE TRADING PLATFORM MARKET, BY DEPLOYMENT MODE
CHAPTER 7: ONLINE TRADING PLATFORM MARKET, BY APPLICATION
CHAPTER 8: ONLINE TRADING PLATFORM MARKET, BY REGION
CHAPTER 9: COMPANY LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Online Trading Platform Market," the online trading platform market was valued at $8.9 billion in 2021, and is estimated to reach $18.4 billion by 2031, growing at a CAGR of 7.8% from 2022 to 2031.The online trading platform market is influenced by factors such as increase in use of smartphones and internet access throughout the globe. In addition, increase in demand for customized Electronic Trading Platform from end users, such as government and non-profitable banks, is anticipated to drive demand for these solutions. Technological advancements and integration of trading platforms on smartphones are few major factors expected to create various market opportunities for key players. In addition, companies in the market are focused on expanding their business units globally. In addition, rise in demand for cloud-based solutions is anticipated to be opportunistic for the Online Trading Platform Industrygrowth during the forecast period. They have countless number of advantages over previous used trading strategies.
On the basis of type, the commissions segment dominated the online trading platform market in 2021, and is expected to maintain the dominance in the upcoming years. It is because commissions could be assessed on a per-order basis. Orders placed over the course of more than one day is handled as distinct order for commission purposes. However, the transaction fees is expected to witness the highest growth rate during the forecast period, as because buyers and sellers pay transaction fees, which are payments made to banks and brokers for their services. Investors care about transaction fees as they are one of the most important predictors of net returns.
On the basis application, the institutional investors segment dominated the online trading platform market in 2021, and is expected to maintain its dominance in the upcoming years. This is because move large blocks of shares and can have a tremendous influence on movements of the stock market. It is defined as sophisticated investors who are well-informed and thus less inclined to make rash decisions and investments. However, the retail investors segment is expected to witness the highest growth rate during the Online Trading Platform Market Forecast period, as have access to a wealth of information but has less access to information that are reserved for institutional investors. Also, retail investment is more user friendly and is mostly done by new clients.
North America is a rapidly growing region in the global Online Trading Platform Industry, owing to rise in technological advancements and adoption. It possesses well-equipped infrastructure and the ability to afford online trading platform solutions. Furthermore, it is projected to show strong growth, owing to favorable urban and modern environments. Top global companies in North America are focused on the U.S., which contributes significantly in the market. The industry is developing as a result of increased investments in trading technologies (such as blockchain), as well as increase in number of online trading suppliers and government supports for global trading. According to select USA, the financial markets in the U.S. are the world's largest and most liquid. For instance, in February 2021, Plus500, an online trading platform provider based in the UK, announced its venture in North America as an expansion strategy. The company aims to expand its business units in new regions.
Post COVID-19, the Online Trading Platform market size is estimated to grow from $8943.0 million in 2021 to reach $18,439.5 million by 2031, at a CAGR of 7.8%. The current estimation of 2031 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has low impact on growth of the online trading market as the adoption of online trading solutions has increased in owing to unprecedented circumstances. Adoption of online trading platform has increased significantly during COVID due to surge in artificial intelligence in form of robo-advisory, increase in sales of smartphones and work from home policies. Post COVID-19 impact, the penetration of Electronic Trading Platform is expected to increase significantly as they offer several advantages such as they are simple to use, less expensive, and chances of error are less.
Key Findings of the Study
- On the basis of component, in 2021, the platform segment dominated the online trading platform market size. However, the service segment is expected to exhibit significant growth during the forecast period.
- Depending on type, the commissions segment generated highest revenue in 2021.
- On the basis of application, the institutional investors segment generated the highest revenue in 2021. However, the retail investors segment is expected to exhibit significant growth during the forecast period
- On the basis of region, North America dominated the market in 2021. However, Asia-Pacific is expected to witness significant growth in the upcoming years.
- Some of the key industry players profiled in the report Td Ameritrade Holding Corporation, Interactive brokers, E-Trade, Profile Software, Chetu, Inc., Empirica, Pragmatic Coder, EffectiveSoft Ltd., Charles Schwab, and Devexperts llc. This study includes online trading platform market share, trends, online trading platform market analysis, and future estimations to determine the imminent investment pockets.
Companies Mentioned
- Chetu
- Devexperts
- Effectivesoft Ltd.
- E-Trade
- Interactive Brokers
- Pragmatic Coders
- Profile Software
- Td Ameritrade
- Charles Schwab Corp.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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