Discount Brokerage Market Report 2024

This Discount Brokerage industry report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The discount brokerage market size has grown strongly in recent years. It will grow from $23.6 billion in 2023 to $25.63 billion in 2024 at a compound annual growth rate (CAGR) of 8.6%. The growth observed during the historic period can be attributed to several factors, including the introduction of zero-commission trades, the expansion of fractional share trading, the inclusion of cryptocurrency trading options, an increase in educational offerings, and rising disposable income.

The discount brokerage market size is expected to see strong growth in the next few years. It will grow to $35.76 billion in 2028 at a compound annual growth rate (CAGR) of 8.7%. The projected growth during the forecast period can be attributed to several factors, including the use of gamification techniques, an increased focus on retirement planning and savings, a heightened emphasis on sustainable and impact investing, the expansion of high-speed internet access, and lower operational costs. Key trends anticipated during this period include the adoption of blockchain technology, the use of artificial intelligence, personalized services, the integration of fintech solutions, and the implementation of advanced analytics tools.

The growth of the discount brokerage market is anticipated to be fueled by the increasing number of retail investors. Retail investors are individual, non-professional investors who buy and sell securities, such as stocks, bonds, mutual funds, and other financial instruments, for their personal accounts rather than for organizations or institutions. The rise of technology-based platforms and services has made investing more accessible and appealing to a broader audience. Discount brokerage services help reduce trading costs for retail investors by offering low fees, allowing more individuals to participate in the stock market and manage their investments independently. For example, in October 2022, the World Economic Forum, a Switzerland-based non-governmental organization, reported that retail investors represented 52% of global assets under management in 2021, with this figure projected to exceed 61% by 2030. This growing number of retail investors is driving the expansion of the discount brokerage market.

Leading companies in the discount brokerage market are focusing on developing advanced web-based trading platforms to enhance trading efficiency. These platforms are online software applications that enable users to buy and sell financial instruments, such as stocks, bonds, options, futures, and cryptocurrencies, over the internet. For instance, in September 2023, HDFC Securities, an India-based financial services company, launched HDFC SKY, a discount brokerage mobile app featuring a flat pricing model for intraday and delivery trades. The app provides access to various investment options and incorporates advanced technology to ensure a seamless trading experience.

In December 2023, Mirae Asset Securities Co., a South Korea-based capital market company, acquired Sharekhan for $360 million. This acquisition is part of Mirae Asset Financial Group’s strategy to strengthen its position in India's rapidly growing retail brokerage market and to enhance its leadership in the Indian securities industry as part of its global expansion efforts. Sharekhan, an India-based financial services company, specializes in online stock trading and discount brokerage services.

Major companies operating in the discount brokerage market are Fidelity Investments Inc., Charles Schwab Corporation, Ally Financial Inc., TD Ameritrade Holding Corporation, Interactive Brokers Group Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, SoFi Technologies Inc., Robinhood Markets Inc., IG Group Holdings plc, Citadel Securities LLC, NerdWallet Inc., Acorns Grow Inc., TradeStation Group Inc., Apex Fintech Solutions LLC, Stash Financial Inc., Saxo Bank A/S, Public Holdings Inc., Wealthfront Inc., Alice Blue Financial Services Private Limited, Folio Investments Inc., OANDA Corporation, eOption, Tastytrade Inc., Zacks Investment Research Inc.

South America was the largest region in the discount brokerage market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the discount brokerage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the discount brokerage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Discount brokerage refers to a brokerage service that enables investors to trade securities, such as stocks and bonds, at lower commission rates than those charged by full-service brokers. These services typically offer fewer advisory and personalized features, focusing primarily on executing trades at reduced costs. Discount brokers provide online trading platforms that allow investors to manage their portfolios and make investment decisions independently, making them an attractive choice for cost-conscious and self-directed investors.

The discount brokerage market operates through two primary modes such as online and offline services. Online discount brokerage services offer investors the ability to buy and sell securities - such as stocks, bonds, and ETFs - through an online platform at lower commission rates compared to traditional brokers. These services include order execution, advisory, discretionary management, online trading platforms, and educational resources. They offer various commission structures, including commission-free and fixed commission models. The target applications for these services include individual investors, enterprises, and government agencies.

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

The discount brokerage market includes revenues earned by entities by providing services such as executing buy and sell orders, offering digital trading platforms, supplying educational resources and investment tools, and delivering basic account management services. 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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