Online Trading Platform Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Global Online Trading Software Industry is Segmented by Component (Platform, Services), Type (Commissions, Transaction Fees), Deployment Mode (On-Premise, Cloud), Application (Institutional Investors, Retail Investors), and Geography.

Online Trading Platform Market Size

Online Trading Platform Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 3.21 Billion
Market Size (2029) USD 4.03 Billion
CAGR (2024 - 2029) 4.61 %
Fastest Growing Market Asia-Pacific
Largest Market North America

Major Players

Online Trading Platform Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Online Trading Platform Market Analysis

The Online Trading Platform Market size is estimated at USD 3.21 billion in 2024, and is expected to reach USD 4.03 billion by 2029, growing at a CAGR of 4.61% during the forecast period (2024-2029).

Factors such as an increase in the usage of AI in the form of robo-advisory, an increase in the demand for customized trading platforms from end users, a surge in the need for market surveillance, and simple and less expensive features are the primary aspects that are fostering the overall growth of the Online Trading Platform Market

  • The market for online trading platforms is positively impacted by the increased use of smartphones and internet connectivity worldwide. Moreover, the overall demand for these trading platforms is also predicted to rise as end customers, such as governments and non-profitable banks, demand more specialized trading platforms. Also, a few crucial elements, like the rise in technological development, investments, and the incorporation of smartphone trading platforms, are anticipated to open up various growth opportunities for the key players operating in the market. In addition, it is projected that the surge in demand for cloud-based solutions and services would present an enormous opportunity for market expansion throughout the projection period.
  • Online trading has recently gained popularity since it enables regular people (often referred to as retail investors) to impact the financial markets significantly. In 2021, using short selling by retail investors to intentionally raise share prices that many major "institutional investors" had bet against falling was a significant talking point in internet investing. The share prices of video game retailer Gamestop and theater operator AMC entertainment are two of the most well-known instances of this. Retail investors primarily use these online trading apps coordinated through social media to drive up these companies' share prices.
  • As per data from Airnow, the most well-known eTrading app worldwide, based on monthly active users, is Robinhood. More than 7.3 million people were using Robinhood as of July 2021, which is more than twice as many as WeBull, which came in second. Early 2021 saw a surge in user numbers, which peaked at over nine million in May 2021. The media attention given to retail investors, who frequently use eTrading apps and coordinate their behavior via social media to raise the stock price of businesses like GameStop and AMC Entertainment, is a crucial factor in this surge in popularity. Therefore with the rise in the global retail trading sector, the online trading platform market is expected to witness substantial growth opportunities throughout the forecasted time.
  • Government regulations, international regulatory agencies, self-regulatory groups, and various exchanges heavily regulate the online trading software industry. Vendors are required to adhere to regulatory and compliance requirements. As a result, failure to comply may subject the vendor to fines, which could impede the expansion of the online trading platform market.
  • The COVID-19 pandemic, on the other hand, has presented an unprecedented challenge for a person to use an online trading platform. The World Trade Organization (WTO) projects that foreign trade would decline by 13% to 32% during the pandemic. The S&P 500 index experienced a 20% decline over three weeks, followed by a 30% decline in a record-breaking 30 days. The Euro STOXX 50 index decreased at its quickest rate ever. As a result, the pandemic has significantly impacted trade, services, and foreign investment.

Online Trading Platform Market Trends

This section covers the major market trends shaping the Online Trading Platform Market according to our research experts:

Wide adoption of Artificial Intelligence

  • The future of online trading platforms is anticipated to change due to the growing emergence of artificial intelligence (AI) worldwide. Utilizing historical data, artificial intelligence technologies can instantly analyze millions of possibilities. Based on this knowledge, the technology may then make logical decisions. As a result, traders can trade without having to constantly monitor the market or analyze graphs, allowing them to take a hands-off strategy.
  • Additionally, through robo-advisors, a wide range of businesses are integrating AI into their trading platforms. The robo-advisors are primarily based on the user's proprietary rating methodology, which considers relevant factors such as portfolio construction, socially responsible investing, mobile functionality, fees, goal planning tools, portfolio management, and cash management. Robo-advisors make investment and money management alternatives more affordable and widely available, enabling more users to save, invest, and grow their money and achieve financial independence.
  • The online trading platform equipped with AI technology enables customers to track millions of trading data pointers and carry out procedures at the best possible cost. The technology also allows analysts to do highly accurate market research and assists trading organizations in effectively reducing risks to provide higher returns.
  • Several businesses have integrated the use of AI into their trading platforms. For instance, Kavout from Kavout Corporation is an AI platform that primarily uses machine learning, big data, and predictive analytics, coupled with the company's Kai quantitative analysis model. The platform assists traders and individuals in identifying potential short-term winners as well as losers in the stock market.
  • Moreover, on the other hand, as per data from Stanford University, the total sum of money invested by corporations worldwide in artificial intelligence (AI) in 2020 was around USD 67.85 billion. In contrast, it was almost USD 94 billion in 2021, signifying a huge rise from the previous year. This overall increase in AI technology investments will possibly augment the market's growth throughout the forecasted timeframe.
Online Trading Platform Market - Global total corporate artificial intelligence (AI) investment from 2018 to 2021, in billion U.S. dollars

North America to Occupy Significant Market Share

  • North America is predicted to hold the largest market share in the total Online Trading Platform Market. Some of the primary drivers that are augmenting the market growth throughout the forecast period are the increasing investments in trading technologies (such as blockchain), the expanding presence of algorithmic trading suppliers, and the expanding government support for international trading.
  • Moreover, due to the increased acceptance and improvement of technology, North America is one of the fastest expanding regions in the world market for online trading platforms. It has a well-developed infrastructure and the financial means to pay for solutions for internet trading platforms. Furthermore, it is anticipated to offer strong growth possibilities during the forecast period, mainly due to the favorable urban and modern environments.
  • Wall Street statistics indicate that around 60-73% of all US equity trading is done through algorithmic trading (use of sophisticated mathematical techniques and advanced tools to automate and program online trading strategies). According to Select USA, the US financial markets are the biggest and most liquid in the world. Sentient Technologies, an AI startup-based company in the US, runs a hedge fund with an algorithm that analyzes millions of data points to identify trade patterns and predict trends.
  • Also, the region is expected to dominate the market throughout the forecast period. The overall growth in the region is mainly due to the existence of major players, such as MarketAxess Holdings Inc., Ally Financial Inc., TD Ameritrade Holding Corporation, and many others. These Leading global players in North America, which contributes significantly in terms of market share, majorly concentrate on the United States and intend to increase their commercial presence across the globe.
  • Furthermore, by automating all related trading processes, modern technology is quickly changing the formats of traditional investment models. This has the consequence of enabling the creation of a safe and efficient ecosystem that will be available to all possible investors. For instance, a team of developers founded the Dex Finance ecosystem in February 2022. By automating complex trading strategies and encouraging investors to leave their deposits within the protocol, Dex Finance created a low-risk trading platform that virtually anybody can use.
Online Trading Platform Market - Growth Rate by Region (2023-2028)

Online Trading Platform Industry Overview

The Online Trading Platform Market is fragmented. Some of the established vendors in the market include TradeStation Group, Inc., Interactive Brokers LLC, Ally Financial Inc., and many others. To remain competitive within the market, these companies implement strategic partnerships, mergers and acquisitions, and product development to launch new products.

  • July 2022 - TD Ameritrade augmented its thinkorswim trading product suite with a host of new additional features and services as the integration with Schwab progresses. Traders utilizing thinkorswim are now better informed and empowered than ever due to the latest charting and programming capabilities that allow for greater desktop customization. These integrated features help mobile users contextualize market movements and an improved and streamlined trading platform on the web.
  • May 2022 - Clients of TradeStation Securities, Inc. had been provided access to CME Group's Micro Copper Futures for trading. TradeStation Securities has added Micro Copper Futures to its lineup of more than 450 futures and futures options products. The TradeStation desktop platform, web platform, and mobile applications offer enhanced visualization and potent analysis capabilities, allowing customers to trade Micro Copper Futures contracts.

Online Trading Platform Market Leaders

  1. TradeStation Group, Inc.

  2. Interactive Brokers LLC

  3. Ally Financial Inc.

  4. MarketAxess Holdings Inc.

  5. digifinex limited

*Disclaimer: Major Players sorted in no particular order

Online Trading Platform Market Concentration
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Online Trading Platform Market News

  • August 2022 - The Customers of Interactive Brokers were provided access to 24-hour crypto trading via an improved online application made by Paxos Trust Company. Customers who choose to handle their account funding at Paxos can pre-fund their accounts during standard US banking hours and then trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), as well as other coins, round-the-clock.
  • March 2022 - IBKR GlobalTrader, a simple mobile trading tool, was launched by Interactive Brokers that allows investors to trade stocks anywhere around the globe. The app's minimalist design makes it simple for inexperienced investors to use while still being robust enough for experienced stock traders. On more than 80 stock exchanges in North America, Europe, and Asia, the platform enables investors to open an account for trading stocks in a matter of minutes.

Online Trading Platform Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Rising Demand For Reduction in the Transaction Costs

      2. 5.1.2 Surge in the Demand for Market Surveillance

    2. 5.2 Market Restraints

      1. 5.2.1 Implementation of stringent rules and regulations by the governments

  6. 6. MARKET SEGMENTATION

    1. 6.1 Component

      1. 6.1.1 Platform

      2. 6.1.2 Services

    2. 6.2 Type

      1. 6.2.1 Commissions

      2. 6.2.2 Transaction Fees

    3. 6.3 Deployment Mode

      1. 6.3.1 On-Premise

      2. 6.3.2 Cloud

    4. 6.4 Application

      1. 6.4.1 Institutional Investors

      2. 6.4.2 Retail Investors

    5. 6.5 Geography

      1. 6.5.1 North America

      2. 6.5.2 Europe

      3. 6.5.3 Asia Pacific

      4. 6.5.4 Rest of the World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 TradeStation Group, Inc.

      2. 7.1.2 Interactive Brokers LLC

      3. 7.1.3 Ally Financial Inc.

      4. 7.1.4 MarketAxess Holdings Inc.

      5. 7.1.5 DigiFinex Limited

      6. 7.1.6 Td Ameritrade Holding Corporation

      7. 7.1.7 E-Trade

      8. 7.1.8 Charles Schwab Corporation

      9. 7.1.9 Huobi Group

      10. 7.1.10 Plus500

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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Online Trading Platform Industry Segmentation

An online trading platform lets users and individuals place orders for financial items across a network with a financial intermediary while streaming real-time market prices. This includes stocks, bonds, money, commodities, derivatives, etc.

The Online Trading Platform Market is segmented by Component (Platform, Services), Type (Commissions, Transaction Fees), Deployment Mode (On-Premise, Cloud), Application (Institutional Investors, Retail Investors), and Geography.

Component
Platform
Services
Type
Commissions
Transaction Fees
Deployment Mode
On-Premise
Cloud
Application
Institutional Investors
Retail Investors
Geography
North America
Europe
Asia Pacific
Rest of the World
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Online Trading Platform Market Research FAQs

The Online Trading Platform Market size is expected to reach USD 3.21 billion in 2024 and grow at a CAGR of 4.61% to reach USD 4.03 billion by 2029.

In 2024, the Online Trading Platform Market size is expected to reach USD 3.21 billion.

TradeStation Group, Inc. , Interactive Brokers LLC, Ally Financial Inc., MarketAxess Holdings Inc. and digifinex limited are the major companies operating in the Online Trading Platform Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Online Trading Platform Market.

In 2023, the Online Trading Platform Market size was estimated at USD 3.07 billion. The report covers the Online Trading Platform Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Online Trading Platform Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Online Trading Platform Industry Report

Statistics for the 2024 Online Trading Platform market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Online Trading Platform analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Online Trading Platform Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)