E-brokerage Market in Spain Market Size

Spain E- Brokerage Market Analysis

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