NEW
YORK, July 12, 2024 /PRNewswire/ -- The
global security brokerage and stock exchange services
market size is estimated to grow by USD
801.9 billion from 2024-2028, according to Technavio. The
market is estimated to grow at a CAGR of 9.45% during the forecast
period. Increasing demand for etfs is driving market
growth, with a trend towards increasing popularity of
online trading platforms. However, increase in regularity
compliances with trading poses a challenge. Key market players
include Ameriprise Financial Inc., Bank of America Corp., Euronext
N.V., Hong Kong Exchanges and Clearing Ltd., ICBC Co. Ltd.,
Intercontinental Exchange Inc., Japan Exchange Group Inc., JPMorgan
Chase and Co., Kt Corp., Morgan Stanley, National Stock Exchange of
India Ltd., Raymond James Financial Inc., Shanghai Stock Exchange,
State Street Corp., StoneX Group Inc., Tadawul Group, The Charles
Schwab Corp., The Goldman Sachs Group Inc., The NorthWestern Mutual
Life Insurance Co., The Vanguard Group Inc., TMX Group Ltd., and
Wells Fargo and Co..
![Technavio has announced its latest market research report titled Global security brokerage and stock exchange services market 2024-2028 Technavio has announced its latest market research report titled Global security brokerage and stock exchange services market 2024-2028](https://mma.prnewswire.com/media/2459243/Technavio__announced_its_latest_market_research_report_titled_Global_security_brokerage_and_stock.jpg)
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Security Brokerage
and Stock Exchange Services Market Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
9.45%
|
Market growth
2024-2028
|
USD 801.9
billion
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
8.42
|
Regional
analysis
|
North America, APAC,
Europe, Middle East and Africa, and South America
|
Performing market
contribution
|
APAC at 43%
|
Key
countries
|
US, China, Japan, UK,
and India
|
Key companies
profiled
|
Ameriprise Financial
Inc., Bank of America Corp., Euronext N.V., Hong Kong Exchanges and
Clearing Ltd., ICBC Co. Ltd., Intercontinental Exchange Inc., Japan
Exchange Group Inc., JPMorgan Chase and Co., Kt Corp., Morgan
Stanley, National Stock Exchange of India Ltd., Raymond James
Financial Inc., Shanghai Stock Exchange, State Street Corp., StoneX
Group Inc., Tadawul Group, The Charles Schwab Corp., The Goldman
Sachs Group Inc., The NorthWestern Mutual Life Insurance Co., The
Vanguard Group Inc., TMX Group Ltd., and Wells Fargo and
Co.
|
Market Driver
Online trading platforms have revolutionized the securities
brokerage and stock exchange services market, offering investors
and traders a more convenient and accessible way to buy and sell
securities. The rise of these platforms can be attributed to the
widespread availability of the internet, mobile devices, and the
desire for personalized and transparent trading experiences. These
platforms enable investors to trade on their own terms, providing
real-time data, ease of use, and a wider range of securities,
including stocks, bonds, commodities, and
cryptocurrencies. One of the primary advantages of
online trading platforms is their cost-effectiveness. Compared to
traditional brokerage services, these platforms offer lower fees
and commissions, making trading more affordable for investors.
Additionally, the automation of processes reduces paperwork, saving
investors time and money. Online trading platforms provide
investors with greater control over their portfolios, offering
real-time trading and market analysis tools. This empowers
investors to make informed decisions based on their personal
financial goals and market trends. The market for online trading
platforms is expected to grow significantly in the coming years,
driven by the increasing demand for personalized investment
experiences and the integration of advanced technologies like
blockchain and AI. Industry players are launching new and
innovative trading platforms with advanced features and
functionalities to attract more investors. These technological
advancements are expected to enhance the accuracy and efficiency of
trading execution while reducing risks for investors. Overall, the
global securities brokerage and stock exchange services market is
poised for significant growth due to these factors.
The Security Brokerage and Stock Exchange Services Market is
experiencing significant trends that impact both stockbrokers and
clients. Brokerage fees continue to be a hot topic, with many firms
offering competitive rates to attract middle-income groups. Machine
learning and predictive analysis are revolutionizing risk
assessment and fraud detection, helping financial
organizations protect against external agents, hackers, and even
insider threats. Chatbots are streamlining customer service,
providing instant access to information on equities, bonds,
derivatives, commodities, and more. Regulatory officials are
focusing on illegal trading suspicions, money laundering, and other
fraudulent activities. Fidelity Investments and other leading
security brokerage firms are leveraging technology to manage
discretionary assets, offering personalized services to fixed
income clients, both online and offline.
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Market Challenges
- The global security brokerage and stock exchange services
market is currently facing significant challenges due to increased
regulatory compliance. Strict regulations aim to ensure market
integrity, transparency, and fairness, but they come with
substantial costs. Brokerage firms and stock exchanges must hire
additional staff, invest in new systems and technology, and conduct
ongoing training to remain compliant. These expenses are expected
to negatively impact their profitability and sustainability. Time
and resources are now primarily focused on regulatory reporting,
compliance monitoring, and risk management. This leaves little room
for innovation and value-added services for clients. The
operational challenges extend beyond brokerages and stock
exchanges, affecting the wider financial markets. New regulations
and the shifting balance of power between regulators, markets, and
firms may cause mistrust among investors, impacting market
confidence. Regulatory compliance is also contributing to industry
consolidation, making it harder for smaller firms to compete.
Larger firms can absorb the costs, but smaller ones struggle. This
reduction in competition is detrimental to consumers. In summary,
increased regulatory compliance is putting significant pressure on
the global security brokerage and stock exchange services market,
with negative impacts on costs, innovation, competition, and
overall market confidence.
- The Security Brokerage and Stock Exchange Services Market face
several challenges in today's dynamic financial landscape.
Exclusive brokers, banks, and investment firms compete fiercely,
offering various financial instruments like equities, mutual funds,
exchange-traded funds, and exchange-traded investments.
High-frequency trading, algorithmic trading, and alternative
trading systems demand advanced technology and cybersecurity.
Retail investor participation is increasing, requiring
user-friendly online platforms and lower transaction fees. ESG
investing integration, market data analytics, and cross-border
trading are essential for global reach. Dealer remuneration,
commission, and fee structures must adapt to remain competitive.
Peripheral services like planning, loyalty programs, retirement
products, and analytical software are crucial for customer
retention. Cybersecurity, tokenized securities, and artificial
intelligence are critical in ensuring efficient securities
brokerages and minimizing investor losses. Short-selling tactics
and market volatility pose risks, necessitating robust risk
management strategies.
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challenges - Request a sample report!
Segment Overview
This security brokerage and stock exchange services market
report extensively covers market segmentation by
- Channel
- Type
- 2.1 Derivatives and commodities brokerage
- 2.2 Equities brokerage
- 2.3 Bonds brokerage
- 2.4 Stock exchanges
- 2.5 Others
- Geography
- 3.1 North America
- 3.2 APAC
- 3.3 Europe
- 3.4 Middle East and
Africa
- 3.5 South America
1.1 Offline- The Security Brokerage and Stock Exchange
Services Market involves buying and selling securities between
buyers and sellers. Brokers facilitate trades, while exchanges
provide a platform for price discovery and execution. This market
plays a crucial role in raising capital for businesses and enabling
investors to diversify their portfolios. Brokers earn commissions
on trades, while exchanges generate revenue through listing fees
and transaction fees. The market's size and growth depend on
various factors, including economic conditions, regulatory
environment, and technological advancements.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data
(2017-2021) - Download a Sample Report
Research Analysis
The Security Brokerage and Stock Exchange Services Market refers
to the financial industry segment that facilitates the buying and
selling of various financial instruments, including stocks, bonds,
securities, derivatives, commodities, mutual funds, and
exchange-traded investments. Financial organizations offer
brokerage services to clients, charging brokerage fees or
commissions for executing trades on their behalf. Stockbrokers and
traders act as intermediaries, connecting buyers and sellers in the
financial market. Assets under management vary from equities and
fixed income for individual clients to complex financial tools and
investment products for institutional clients. Bond brokerage
caters specifically to fixed income clients, while online platforms
have made brokerage services more accessible than ever. The
securities business unit is a significant revenue generator for
financial institutions, providing remuneration through various fee
structures.
Market Research Overview
The Security Brokerage and Stock Exchange Services Market is a
dynamic financial sector that facilitates the buying and selling of
various financial instruments, including stocks, bonds, securities,
derivatives, commodities, and more. Financial organizations offer
brokerage services to clients, charging brokerage fees for
executing trades on their behalf. Stockbrokers and traders play
crucial roles in this market, dealing with equities, fixed income
clients, high-frequency trading, exchange-traded funds, and
alternative trading systems. Online and offline platforms cater to
various client needs, with exclusive brokers providing personalized
services. Banks and investment firms are significant players in
this market, offering a range of financial tools and investment
products. Cybersecurity is a top priority, with measures against
fraud, external agents, hackers, and insider threats
essential. ESG investing integration, market data analytics, and
cross-border trading are emerging trends. Transaction fees, dealer
commissions, and remuneration are key considerations for clients.
Peripheral services like planning services, loyalty programs,
retirement products, and analytical software enhance the overall
offering. Machine learning, risk assessment, and predictive
analysis are essential for effective trading strategies. Regulatory
compliance and anti-money laundering measures are crucial in
maintaining market integrity.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Channel
-
- Type
-
- Derivatives And Commodities Brokerage
- Equities Brokerage
- Bonds Brokerage
- Stock Exchanges
- Others
- Geography
-
- North America
- APAC
- Europe
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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