PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1373910
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1373910
Securities brokerages and stock exchanges market size was valued at USD 1,760,012.8 Million in 2022, expanding at a CAGR of 7.2% from 2023 to 2030.
Securities brokerages represent a securities industry that assists a person or a company in carrying out the sale, purchase, or exchange of securities in exchange for a fee, commission, or some other form of payment. In line with this, securities are defined as any financial instrument with substantial value and can be traded between involved entities. Moreover, stocks also known as equities are a type of security that when purchased, grants the buyer a share of ownership in a company or business. It is a platform where various sellers and buyers can join together to trade financial tools during a certain period of the day and on specific days of the week.
Securities Brokerages and Stock Exchanges Market- Market Dynamics
Knowledge of a wider range of investment products and a rising number of players aiming for management, wealth creation, and retirement to create higher revenue
The global securities brokerages and stock exchanges market is likely to grow as these organizations possess information and expertise about a diverse range of investment items. It can be challenging to navigate through all the options and make the best course of action for oneself as there are millions of buyers and sellers on stock exchanges. Additionally, securities brokerages can step in at this stage since they have employees who comprehend the financial market and may provide excellent recommendations to people who sign up for the service allowing them to increase their chances of improving profit margins. However, frequent loss of customers is expected to impact market growth negatively over the forecast period. On the other hand, the market is projected to benefit from the rising number of traders in the securities and stock markets. The demand for efficient securities businesses and brokerages providing services in stock exchanges is likely to grow as more individuals invest the majority of their savings in these markets. Hence, people seek professionals who can mentor them in the otherwise scary world of financial trading.
Securities Brokerages and Stock Exchanges Market- Key Insights
As per the analysis shared by our research analyst, the global securities brokerages and stock exchanges market is estimated to grow annually at a CAGR of around 7.2% over the forecast period (2023-2030)
The securities brokerages and stock exchanges industry is projected to grow at a significant rate owing to its knowledge of a huge range of investment products
Based on establishment type segmentation, investment firms was predicted to show maximum market share in the year 2022
Based on type segmentation, stock exchanges was the leading type in 2022
The securities brokerages and stock exchange markets across the globe have also adopted modern technology including machine learning (ML) and artificial intelligence (AI) to improve their customer services and reach a broader group of audience.
The global securities brokerages and stock exchanges market is segmented on the basis of establishment type, mode, type, and region.
The market is divided into three categories based on establishment type: exclusive brokers, investment firms, banks, and others. The investment firms segment is accounted to observe the highest growth as these institutes are experts in investment-related services. The financial sector is full of numerous types of concepts and investment opportunities. It can be intimidating and confusing for a common individual to choose the best option from the lot since there is a huge risk involved in the finance sector. Thus, they frequently use investment firms to offer guidance and help to them make informed decisions.
The market is divided into four categories based on type: bonds brokerage, derivatives & commodities brokerage, stock exchanges, equities brokerage, and others. The stock exchanges segment is likely to possess the largest market share over the forecast period, particularly after COVID-19. The rising numbers of service providers, higher return on investment when traded correctly, rising awareness, and growing interest of common people in the share market, are some of the driving factors in the favor of the segment growth.
Securities Brokerages and Stock Exchanges Market- Geographical Insights
The security brokerage and stock exchange services market is geographically segmented by into North America, Europe, APAC, Middle East and Africa, and South America. The North American market is projected to witness the highest growth with the US leading with the largest part of the market share. In line with this, the U.S. is home to one of the world's business financial trading hubs known as the Financial District where the New York Stock Exchange (NYSE) is situated.
Organizations are investing heavily in technology such as machine learning and AI, to enhance user experience, offer personalized investment advice, and improve trading algorithms. With the increase in cryptocurrencies, professional brokerages like Binance and Coinbase have emerged, focusing on the trading of cryptocurrencies and digital assets. Moreover, various market players specialize in specific areas, including Interactive Brokers for high-frequency trading and active traders, catering to a niche market with specialized requirements. Numerous firms are also expanding their reach worldwide to tap into international markets and offer access to a broader range of investment opportunities for their clients. For instance, Fidelity Investments is among the very best online brokerage platforms available, providing a comprehensive suite of equipment, research, and investable assets. The platform's wealth of resources makes Fidelity a great choice for both new investors and veteran traders -all of which helped Fidelity take the award for best online brokerage.
For instance, in April 2022, Goldman Sachs Group, Inc. announced the acquisition of NN Investment Partners from NN Group N.V. for €1.7 billion. The acquisition brings Goldman Sachs' assets under supervision to approximately $2.8 trillion1 and affirms its position as a top five active asset manager globally with leading franchises in liquidity, fixed income, alternatives, equities, and insurance asset management.