UK E-Brokerage Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | EUR 693.77 Million |
| Market Size (2029) | EUR 797.76 Million |
| CAGR (2024 - 2029) | 2.83 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UK E-Brokerage Market Analysis
The E-Brokerage Market in the United Kingdom Market size is estimated at EUR 693.77 million in 2024, and is expected to reach EUR 797.76 million by 2029, growing at a CAGR of 2.83% during the forecast period (2024-2029).
E-brokerage or an online broker is a broker that works with their clients via the Internet instead of in a brick-and-mortar location. Those who are involved in online trading will often hire these professionals or firms to assist them in purchasing and selling stock. An online broker acts as a liaison between their client and tradable securities. They also act as the middleman to help their clients purchase stock and sell to other investors. In most cases, a person hiring an online broker is hiring a firm, but there are online brokers who provide client-based services. An online broker performs the same liaison duties as a brick-and-mortar broker, but they never see their clients face to face and perform all their duties online. In its most basic terms, the definition of an online broker is a trading provider who offers access to a digital platform, to help their clients buy, sell, and trade stocks.
Investors increase their trading activities as the COVID-19 pandemic unfolds, both at the extensive and at the intensive margin. The number of investors who first open an account with the broker increases, while at the same time established investors increases their average trading activities. Investors, on average, significantly increase their weekly trading as the number of COVID-19 cases doubles. Investors open more stock and index positions, but do not move to safe-haven (gold) or particularly 'risky' (CFDs on stocks, cryptocurrencies) investments. The increase in trading is especially pronounced for male and older investors. Investors also marginally increase their tendency to engage in short selling. Stock trading increases most for industries that tend to be losers as the crisis progresses. Here, especially travel-related industries are exposed to early short selling at the beginning of February, in line with the notion that retail short selling has predictive ability for future stock returns.
UK E-Brokerage Market Trends
This section covers the major market trends shaping the UK E-Brokerage Market according to our research experts:
The UK’s exit from the European Union
During the 2020 financial year, Companies having operation in both parts of the economies suffers a lot. Many brokerage firm set-up new entities or branches in European Union.
For e.g., IG Group Europe, our new client-facing subsidiary domiciled in Germany, became fully operational. We've successfully transferred the majority of our EU-resident client base to contract with IG Europe. Although the exact ramifications of the future trading relationship between the UK and EU remain unclear, IG now has an operating structure that should enable us to offer our regulated financial products in all EU member states once the transition period has ended.
The level of volatility in financial markets
Companies' ability to attract new clients, and the willingness of clients to trade, are driven substantially by the numbers of clients who are seeing opportunities to trade in the financial markets. Higher levels of volatility tend to generate more trading opportunities, and these in turn attract new clients and increase the level of individual client trading activity. Measures of financial market volatility, such as the VIX index, reached unprecedented levels during the 2020 financial year. This surge was triggered primarily by the Covid-19 pandemic and has resulted in exceptional revenue performance. However, these levels of volatility aren't expected to continue over the medium term. Any future reduction in the general level of volatility is likely to have a detrimental effect on revenue, since this is driven by overall numbers of active clients and the level of each client's activity - both of which depend on market conditions.
UK E-Brokerage Industry Overview
The e-brokerage market in the United Kingdom has a highly competitive landscape with many companies acting as players, providing brokerage services to both retail and institutional investors. Some of the top companies are eToro, Peperstone, Plus500, Capital.com, IG Group, City Index, Robinhood, AvaTrade, Monesta Markets, etc.
The crucial element in this market is customer's value. Through reliability on demand of customer, these companies change the rates accordingly. Main revenue stream was commission, interest income, annual maintenance charges, etc.
Offering of CREST account (CREST is the name of the UK's system used for settling trades in electronic form). However, there are a very limited number of online brokers who offer this to new clients: Stocktrade is the main one.
Very active traders may want to consider a broker who offers direct market access (DMA). Most brokers place your trade through market-makers known as retail service providers. This involves asking one or more intermediaries who trade directly on the stock exchange to quote a price for the trade. You then get around 15 seconds to decide whether to accept that or not. With DMA, your order is placed directly onto the stock exchange's order book. Effectively, this means you offer a price and see if anybody will meet you, rather than accepting a price that somebody offers you. Most investors don't need this, but for very frequent traders the extra control can be useful.
UK E-Brokerage Market Leaders
eToro
IG Groups
Pepperstone
Robinhood
AvaTrade
*Disclaimer: Major Players sorted in no particular order
UK E-Brokerage Market News
on 1 Jan. 2021, tens of thousands of investors will experience significant changes with respect to compensation schemes and consumer protection amounts. EU residents that have so far enjoyed FCA regulatory oversight will lose FSCS protection on their investments, which amounts to Euro 85,000 per account. The majority will most probably be covered by investor protection schemes offered by Germany's Bafin, the CySec in Cyprus, Luxembourg's SIIL, and France's FGDR.
The regulatory landscape is set to change for UK residents as well. Investors in EU-domiciled funds will not have recourse to the UK's Financial Services Compensation Scheme (FSCS) and will have to apply to foreign compensation authorities to get their money back should something go wrong. The UK government has agreed to continue allowing 9,000 EU-based funds to be sold to UK investors even though the FCA will have no regulatory oversight over these products.
UK E-Brokerage Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Recent Development In Markets
4.6 Porter's Five Force Model
4.7 Technology Snapshot
4.8 Consumer Behaviour Analysis
4.9 Government Regulation In Market
4.10 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Investor
5.1.1 Retail
5.1.2 Institutional
5.2 By Operation
5.2.1 Domestic
5.2.2 Foreign
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 eToro
6.1.2 Peperstone
6.1.3 Plus500
6.1.4 Capital.com
6.1.5 IG Group
6.1.6 City Index
6.1.7 Robinhood
6.1.8 AvaTrade
6.1.9 Monesta Markets
6.1.10 Stocktrade
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
UK E-Brokerage Industry Segmentation
E-brokerage Market is one of the most widely demanded markets as people are adopting digitalization. A complete background analysis of the United Kingdom e-brokerage market includes an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles in the report. The E-Brokerage Market in the United Kingdom is segmented by Investor Type (Retail and Institutional) and by Operation (Domestic and Foreign). For each segment, the market sizing and forecasts have been done based on value (USD million).
| By Investor | |
| Retail | |
| Institutional |
| By Operation | |
| Domestic | |
| Foreign |
UK E-Brokerage Market Research FAQs
How big is the United Kingdom E-Brokerage Market?
The United Kingdom E-Brokerage Market size is expected to reach EUR 693.77 million in 2024 and grow at a CAGR of 2.83% to reach EUR 797.76 million by 2029.
What is the current United Kingdom E-Brokerage Market size?
In 2024, the United Kingdom E-Brokerage Market size is expected to reach EUR 693.77 million.
Who are the key players in United Kingdom E-Brokerage Market?
eToro, IG Groups, Pepperstone, Robinhood and AvaTrade are the major companies operating in the United Kingdom E-Brokerage Market.
What years does this United Kingdom E-Brokerage Market cover, and what was the market size in 2023?
In 2023, the United Kingdom E-Brokerage Market size was estimated at EUR 674.68 million. The report covers the United Kingdom E-Brokerage Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom E-Brokerage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UK E-Brokerage Industry Report
Statistics for the 2024 UK E-Brokerage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK E-Brokerage analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
