Market Trends of Online Trading Platform Industry
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.
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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.
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