Online Trading Platform Market Size

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.