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Covid-19 had a positive impact on the e-brokerage market in Spain. During the pandemic, Online Trading has been experiencing growth shown by the increased transaction volume it through e brokerage platforms. E brokerage refers to the selling of financial securities such as bonds, stocks, mutual funds, ETFs using the internet. Earlier there used to be banks and brokers who used to give brokerage services in the traditional brick and mortar form. Now there are various new entrants which use the e-commerce business model to give brokerage services to investors. Internet penetration in Spain has reached 84% for the year 2020. This has lead to favorable growth of e brokerage subscribers in Spain.
Spain is the third largest and one of the attractive investment markets in the EU region. In the year 2020, the GDP of Europe contracted by 8.3% and even more GDP of Spain contracted by 12.3%. the capital market of Spain also showed a likewise decline. The benchmark index named IBIX 35 declined by 15.45%. the banking and the hospitality sector suffered the most whereas, the health and energy sectors were impacted less. The market showed positive growth only in the later quarters of 2020.
The MiFID II which is the European Union requirement for technology-oriented investment services came into force from Jan 3rd, 2018. It demands the higher transparency and reporting obligation for various financial intermediaries including brokerage houses. In relation to the Forex market, e broker authorized from other European countries are also allowed to operate In Spain. But the reliability is more on e- brokers who are authorized by National Securities Market Association (CNMV) or through European Security and Market Authority
Scope of the Report
E-brokerage allows users to buy and sell stocks and other financial instruments electronically. The E-brokerage market can be segmented by type of order execution into Market maker type broker and Electronic Communication Network (ECN) Broker. An understanding of the e- brokerage market in Spain along with the key players, their business model, and detailed market segmentation is included in this report. Furthermore, key market trends, changes in market dynamics, sizes and forecasts for the various segments, and insights on growth opportunities are also included in this report. The E-Brokerage Market in Spain can be segmented based on the type of the 'execution of the order'. Market Maker type brokers provide their own trading desk whereas, Electronic Communication Network (ECN) broker connects investors with the market.
Key Market Trends
The Financial Products contribute to highest percentage of Family assets of Spanish
The brokerage market is closely related to financial market investments. The recent trend in savings habits of Spain shows the increasing figures. The saving reached a high of 31.17% in July 2020 where the pandemic resulted in higher savings. But the savings started to decrease in the last quarter of 2020 where savings was only 20% in Jan 2021. The savings alone do not contribute to the revenue in the e-brokerage market. To generate revenue the saving should be channelized to the capital market instrument. The data shows that most of the savings of Spaniards are directed toward financial products(54%) and real estate and property(39%). Pension plans are the most popular investment channelizing 14% of savings, followed by bank deposits (11%). The investment in equity shares comes in the third position
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The large chunk of average savers are most targeted segment for E brokerage
Researches' shows that around 43% of the population managed to save between 5000 to 15000 euros for the period so this average saver segment of the population is more targeted by e brokerage houses. Also, 10% managed to save 40,000 euros and more they should be targeted as high net worth customers. The researches also show that people from Aragon, Cantabria, Pais Vasco, and Rioja La have a high saving appetite.
Various multinational players are operating in the Spanish e brokerage market. Among them Interactive Broker, Saxo Bank, DEGIRO, TradeStation, eToro, Pro RealTime Trading, IG, CMC Market, iBroker, BBVA Trader are the most popular ones. . The most popular online broker is eToro which has crossed 20 million subscribers out of which 69% are from the European region. Many of the traditional brick and mortar traditional brokers are also opting for the online platform. The e-brokerage houses have a competitive advantage in terms of cost compared to their traditional counterparts. E brokerage houses spend heavily on marketing to acquire a higher customer base. Due to this intense competition is seen among the e-brokerage company in Spain to acquire a higher subscriber base. There are countless Forex brokers operating in Spain as they need not be authorized by CNMV or the European Security Market Authority. This also has led to scams and fraud in the forex brokerage so it is quintessential to background check the brokerage house before opting for one.
- In early 2021, DeGiro BV merged with flatexDEGIRO Bank AG, creating the largest online foreclosure broker in Europe with its own banking license. Also in April 2020, German Flatex completes its 100% acquisition of DeGiro. The Deal value of the acquisition was 250 EURO million. With this Flatex Degiro become the leading online broker in Europe.
- In July 2021, Interactive broker, a leading online brokerage firm in Spain and all of Europe announced a new simple flat fee structure for stock trading in Europe. Interactive Broker is trying to increase its customer base by introducing a new simplified pricing structure for stocks that are tailored to individual investor priorities. The first markets to benefit from this new fee model are the exchanges of Western Europe.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Various Regulation on E brokerage Market in Spain
4.6 Insight on Technological Innovation in Market
4.7 Insights on Investment Behaviour of Spanish Citizens
4.8 Impact of Covid-19 on Market
5. MARKET SEGMENTATION
5.1 By Investor
5.2 By Operation
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.5 BBVA Trader
6.2.6 IC Market
6.2.7 AVA Trade
6.2.8 FP Market
7. MARKET OPPORTUNITY AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
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Frequently Asked Questions
What is the study period of this market?
The E- Brokerage Market in Spain market is studied from 2018 - 2027.
What is the growth rate of E- Brokerage Market in Spain?
The E- Brokerage Market in Spain is growing at a CAGR of 8% over the next 5 years.
Who are the key players in E- Brokerage Market in Spain?
eToro, Interactive Broker, DEGIRO, BBVA Stock Broker, CMC Market are the major companies operating in E- Brokerage Market in Spain.