PUBLISHER: The Business Research Company | PRODUCT CODE: 1435545
PUBLISHER: The Business Research Company | PRODUCT CODE: 1435545
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 from The Business Research Company 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 size has grown strongly in recent years. It will grow from $1932.93 billion in 2023 to $2078.98 billion in 2024 at a compound annual growth rate (CAGR) of 7.6%. The expansion observed in the historical period can be ascribed to the increasing demand for investment opportunities, demographic shifts, and changes in investor behavior. Additionally, the introduction of high-frequency trading and the growing demand for exchange-traded funds (ETFs) have contributed to this growth.
The securities brokerage and stock exchange services market size is expected to see strong growth in the next few years. It will grow to $2807.24 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. The anticipated growth in the forecast period can be ascribed to factors such as global regulatory advancements, increased emphasis on cybersecurity, changes in investor preferences, initiatives for cross-border trading, and the adoption of tokenized securities. Notable trends expected in the forecast period encompass algorithmic trading, heightened participation from retail investors, integration of ESG (Environmental, Social, and Governance) investing, utilization of market data analytics, and an emphasis on cross-border trading.
The anticipated growth in the security brokerage and stock exchange services markets is expected to be propelled by the rising popularity of online trading platforms. These platforms, whether in the form of websites or software programs, provide a digital interface for individuals to buy and sell securities over the Internet. Security brokerage and stock exchange services offer a secure online environment for customers to engage in transactions involving stocks, bonds, and other securities, often at reduced fees, eliminating the necessity of dealing directly with a security broker or dealer. For instance, a report from Business of Apps in January 2023 highlighted a 49% increase in the use of online stock trading apps or platforms, with 130 million users in 2021 compared to 2020. Hence, the growing popularity of online trading platforms is a significant driver for 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 $1,093.58 billion (£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.
Artificial intelligence is being widely utilized by securities brokerage companies to enhance trade execution speed. Artificial intelligence involves programming machines to emulate human behavior and reactions. Many companies leverage AI for algorithmic trading in stock brokerage, where trading ideas are transformed into algorithmic trading strategies. AI-enabled alternative trading systems (ATS) contribute to faster trade execution, with major trading houses such as Blackrock, Two Sigma, and Renaissance Technologies utilizing AI for stock selection.
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 report are Bank of America Corporation, Citigroup Global Markets Inc./Smith Barney, 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&R Block Financial Advisors Inc., H.D. Vest Financial Services Inc., Ameritas Investment Corp., Associated Securities Corporation, Commonwealth Financial Network Inc., Axa Advisors LLC, Aura Financial Services Inc., Cambridge Investment Research Inc., Lincoln Investment Planning Inc., Geneos Wealth Management Inc., GunnAllen Financial Inc., FSC Securities Corporation, 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 2023. 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.
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.
Securities Brokerage And Stock Exchange Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on securities brokerage and stock exchange services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for securities brokerage and stock exchange services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The securities brokerage and stock exchange services market global report from the Business Research Company answers all these questions and many more.
The 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 impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.