Securities Brokerage and Stock Exchange Services Market Report 2025

The securities brokerage and stock exchange services market size has grown strongly in recent years. It will grow from $2.05 trillion in 2024 to $2.2 trillion in 2025 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to growing demand for investment opportunities, demographic changes and investor behavior, introduction of high-frequency trading, growing demand for exchange-traded funds (ETFs).

The securities brokerage and stock exchange services market size is expected to see strong growth in the next few years. It will grow to $2.98 trillion in 2029 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to global regulatory developments, focus on cybersecurity, shift in investor preferences, cross-border trading initiatives, adoption of tokenized securities. Major trends in the forecast period include algorithmic trading, retail investor participation, ESG investing integration, market data analytics, cross-border trading.

Economic growth and wealth accumulation are anticipated to drive the expansion of the security brokerage and stock exchange services markets in the future. Economic growth and wealth accumulation refer to the increase in a country's production of goods and services over time, resulting in higher income levels and improved living standards for its population. This growth leads to increased disposable income, encouraging more individuals to participate in financial markets and creating a heightened demand for securities brokerage and stock exchange services. For example, in September 2024, the Office for National Statistics, a UK-based government department, reported that the UK's gross domestic product (GDP) is estimated to have grown by 0.5% in the second quarter (April to June) of 2024, a revision down from the initial estimate of a 0.6% increase. Thus, economic growth and wealth accumulation are fueling the growth of the security brokerage and stock exchange services markets.

The factor expected to drive the security brokerage and stock exchange services markets is the increasing prevalence of exchange-traded funds (ETFs). These investment funds are traded on stock exchanges and offer various advantages within securities brokerage and stock exchange services, contributing to the efficiency and dynamism of financial markets. Refinitiv reported in August 2023 that the total assets of London Stock Exchange-listed ETFs reached $1.09 trillion (£866.19 billion) in June 2023. Therefore, the escalating number of exchange-traded funds (ETFs) is a key contributor to the growth of the security brokerage and stock exchange services markets.

Brokerage firms are increasingly placing emphasis on offering additional peripheral services to a global customer base. These ad hoc peripheral services, unconventional trading solutions such as investment advice and planning services, are provided by brokerage firms to attract a wider clientele. This strategic focus aims to stay competitive in a market sensitive to pricing while aiming to capture a larger share of investor assets. Notable offerings include loyalty programs, retirement products and services, analytical software, and social components as brokerage firms strive to expand their market presence. To entice traders, firms are also eliminating minimum activity charges, providing free access to premium industry publications, and offering discounted fees to existing traders.

Major players in the securities brokerage and stock exchange services markets are increasingly adopting new technologies, such as Brokerage as a Service (BaaS) solutions, to enhance accessibility, streamline operations, and broaden their client base. BaaS is a cloud-based solution that enables financial institutions, fintech companies, and other third parties to offer brokerage and trading services without the need to develop the underlying infrastructure themselves. For example, in August 2024, HDFC Securities, a financial services company based in India, launched HDFC FinX, a BaaS solution aimed at allowing banks, fintech firms, and other institutions to provide integrated trading services. By integrating HDFC's trading application, HDFC SKY, through APIs and SDKs, partners can deliver a seamless trading experience without significant development efforts. The platform features various revenue-sharing models, including brokerage revenue sharing, hybrid models, and referral-only options.

Major companies in the securities brokerage and stock exchange services sector are embracing new technologies, such as Broker Cloud (Brokerage X SaaS). A cloud broker, acting on behalf of an organization, consults, mediates, and simplifies the selection of cloud computing solutions. For instance, in June 2023, Waton Securities International Limited, a Hong Kong-based company specializing in retail banking and financial services, introduced Broker Cloud (Brokerage X SaaS) as part of its customized financial technology business strategy. Leveraging Amazon Managed Streaming for Apache Kafka (MSK), Waton's Broker Cloud offers fully managed, highly reliable, and secure data streaming. This enables agile, intelligent, and comprehensive data analysis capabilities, empowering Waton Securities International to innovate rapidly.

Major companies operating in the securities brokerage and stock exchange services market include Bank of America Corporation, Northwestern Mutual Life Insurance Company, INVEST Financial Corporation, Ameriprise Financial Services Inc., Edward Jones & Co. L.P., Raymond James Financial Inc., Genworth Financial Inc., Wells Fargo Advisors LLC, H.D. Vest Financial Services Inc., Ameritas Investment Corp., Associated Securities Corporation, Commonwealth Financial Network Inc., Aura Financial Services Inc., Cambridge Investment Research Inc., Lincoln Investment Planning Inc., Geneos Wealth Management Inc., Cadaret Grant & Co. Inc., Berthel Fisher & Company Financial Services Inc., First Allied Securities Inc., Capital Financial Group Inc., Investacorp Inc., InterSecurities Inc., Capital Analysts Incorporated, Investment Centers of America Inc., Investors Capital Corporation.

North America was the largest region in the securities brokerage and stock exchange services in 2024. South America was the second largest region in the securities brokerage and stock exchange services. The regions covered in the securities brokerage and stock exchange services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the securities brokerage and stock exchange services market report are Australia; China; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa.

A stock brokerage functions as a financial institution operating in the stock or commodity markets, engaging in the buying and selling of assets on behalf of clients, with a brokerage fee applied for these services. Meanwhile, a stock exchange serves as an authorized and standardized marketplace where stock brokers and traders conduct transactions involving stocks, bonds, and other securities.

Security brokerage and stock exchange services encompass various types, including derivatives and commodities brokerage, stock exchanges, bond brokerage, equity brokerage, and other forms of stock brokerages. Bond brokerage specifically involves establishing financial bonds with fixed-income clients. These services are accessible through different modes, including both online and offline platforms. The entities involved in these activities include exclusive brokers, banks, investment firms, and various other establishments.

The securities brokerage and stock exchange services research report is one of a series of new reports that provides securities brokerage and stock exchange services statistics, including securities brokerage and stock exchange services industry global market size, regional shares, competitors with securities brokerage and stock exchange services shares, detailed securities brokerage and stock exchange services segments, market trends and opportunities, and any further data you may need to thrive in the securities brokerage and stock exchange services industry. This securities brokerage and stock exchange services research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

The securities brokerage and stock exchange services market consists of revenues earned by entities by acting as brokers in selling securities such as equities, bonds, commodities and derivatives. Securities brokerages represent customers in dealing with securities transactions on the trading floor/online platform of stock exchanges. The securities brokerages might sometimes act as a representative for both buyer and seller. This market excludes the advisory and investment activities of the brokerage firms. This market includes transaction charges levied by stock exchanges for trading on its trading floor/online platform to securities brokerages and other fees. It does not include the value of the funds invested in securities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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