Investment Banking Trading Services Market Report 2025

The investment banking trading services market size has grown strongly in recent years. It will grow from $402.57 billion in 2024 to $437.36 billion in 2025 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to rise of derivatives and structured products, regulatory changes post-financial crisis, market globalization and interconnectedness, introduction of algorithmic trading, emergence of electronic trading.

The investment banking trading services market size is expected to see strong growth in the next few years. It will grow to $635.9 billion in 2029 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to expansion of high-frequency trading (HFT), market volatility and risk mitigation, augmented reality and virtual trading environments, increasing focus on derivatives trading, global expansion of financial markets. Major trends in the forecast period include adoption of algorithmic trading, rise of ESG investing, integration of artificial intelligence (AI), expansion of cryptocurrency trading, shift towards remote trading environments.

The growth of the investment banking and trading services market is anticipated to be propelled by the increasing demand for advisory and consultancy services. Advisory services, performed by a Certified Public Accountant (CPA), involve developing findings, conclusions, and recommendations for clients, while consultancy services provide expertise or strategic advice for consideration and decision-making. Investment banking and trading services encompass a range of advisory services, including Initial Public Offerings (IPOs) for companies going public, merger and acquisition advisory services, and other related services. For example, in March 2023, Statistics Canada reported a 9.7% increase in operating revenue for management, scientific, and technical consulting services in 2021, reaching $29.2 billion. This highlights the driving force behind the growth of the investment banking and trading services market - the increasing need for advisory and consultancy services.

The escalation in the number of cyber threats is expected to contribute to the growth of the investment banking and trading services market. Cyber threats encompass potential dangers posed by malicious activities targeting computer systems, networks, and digital information to cause data damage. Given the sensitive financial data handled by investment banking and trading services, these entities are vulnerable to cyber threats, as cybercriminals seek unauthorized access to confidential information. In February 2023, the Australian Cyber Security Centre reported a 13% increase in cybercrime reports in 2022, reaching 76,000 cases. This underlines how the growing number of cyber threats is a key factor driving the growth of the investment banking and trading services market.

Technological advancements have become a significant trend in the investment banking trading services market. Major companies within this sector are concentrating on creating cloud-based solutions. For example, in June 2024, HSBC Holdings plc, a financial services firm, introduced WorldTrader, a digital trading platform tailored for its Wealth and Personal Banking (WPB) clients. This platform offers access to a diverse array of international investment opportunities, enabling customers to trade in equities, exchange-traded funds (ETFs), bonds, mutual funds, and fixed-income products. WorldTrader encompasses up to 80% of global stock market capitalization and connects to 77 exchanges across 25 markets.

Major players in the investment banking trading services market are developing innovative products like account aggregator (AA) services to maintain their market position. Account Aggregator (AA) services are a regulated entity service that enables individuals to securely and digitally access and share information from one financial institution to another regulated financial institution where they hold an account. For instance, in June 2023, PhonePe, an India-based software company, launched its Account Aggregator (AA) services. These services allow users to share their financial data with other financial institutions, including lenders, insurance companies, and investment firms, with their consent. Account Aggregator (AA) services are transforming the financial services landscape.

In October 2022, FMI Corporation, a US-based consulting and investment banking services firm, acquired SLATE Partners LLC, a US-based boutique investment bank. This strategic move provided FMI Corporation with enhanced transactional experience, complementary talent, and strengthened capabilities in Mergers and Acquisitions (M&A), particularly in the building goods, facilities services, and contractor services industries. FMI Corporation's acquisition of SLATE Partners LLC further solidified its role as an advisor to private equity portfolio firms.

Major companies operating in the investment banking trading services market include Bank of America Corporation, Barclays Bank PLC, Citigroup Inc., Deutsche Bank AG, Goldman Sachs, JPMorgan Chase & Co., Morgan Stanley, UBS Group AG, Wells Fargo & Company, HSBC Holdings PLC., BNP Paribas S.A, Societe Generale Group, ABN AMRO Bank N.V., AllianceBernstein Holding L.P., BofA Securities Inc., RBC Capital Markets, Mizuho Financial Group, Nomura Holdings Inc., The Royal Bank of Scotland Group plc, Macquarie Group Limited, Lazard Ltd., Rothschild & Co., Evercore Partners Inc., Jefferies Group LLC, Sumitomo Mitsui Financial Group Inc., Truist Securities Inc., UniCredit SpA, VTB Capital plc.

Asia-Pacific was the largest region in the investment banking trading services market in 2024. The regions covered in the investment banking trading services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the investment banking trading services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Investment banking and trading services pertain to banking firms offering a range of financial services, including proprietary trading and trading securities on behalf of clients. These services play a crucial role in assisting businesses with financial market assessments to raise funds and address various business requirements.

The primary categories of investment banking trading services include equity underwriting and debt underwriting services, trading and related services, financial advisory, and other service types. Financial advisory services involve a team of qualified professionals providing guidance on the management of money and assets. These services find applications across diverse industry verticals, including BFSI, healthcare, manufacturing, energy and utilities, IT and telecom, retail and consumer goods, media and entertainment, and others.

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The investment banks and trading services market consists of revenues earned by entities by providing a range of services including underwriting, sales, equity research, and asset management. The market value includes the value of related goods sold by the service provider or included within the service offering. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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