United States Online Trading Platform Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The United States Online Trading Platform Market is segmented by Offerings (Platforms, Services), by Deployment Mode (On-Premises, Cloud), By Type(Beginner, Advanced), by End-user (Institutional Investors, Retail Investors). The market sizes and forecasts are provided in terms of value in USD million for all the above segments.

US Online Trading Platform Market Size

US Online Trading Platform Market Summary
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Study Period 2018-2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR 6.11 %
Market Concentration Low

Major Players

US Online Trading Platform Market Major Players

*Disclaimer: Major Players sorted in no particular order

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US Online Trading Platform Market Analysis

The United States Online Trading Platform market was valued at USD 3,092.9 million last year. It is expected to reach USD 4,347.7 million in the next five years, registering a CAGR of 6.11% during the forecast period. The growing accessibility with the increasing penetration of smartphones, Integration of AI technology, and robo advisors to notify on real-time updates and Capabilities, such as trade order and investment management integrated into a single platform, majorly drive the market growth rate during the forecast period.

The growing innovations in integrating AI in the banking sector are analyzed to create demand during the forecast period, owing to the rising collaborations in the sector. For instance, in May 2023, BNY Mellon declared its aim to implement an AI-based apparatus to develop further its substance goal administration in its client data set. The bank planned for this implementation to be a part of its ongoing efforts to improve data management and meet regulatory requirements for identifying customers and their banking relationships.

The increasing accessibility and rise in the adoption of smartphones have played a significant role in driving the market of online trading platforms in the United States. The widespread adoption of smartphones has provided individuals with easy access to the Internet and various online services, including online trading platforms. With smartphone trading apps, investors and traders can monitor and manage their portfolios and execute trades with access to real-time market information anytime and anywhere. In this way, smartphones have democratized trading, enabling individuals to participate in the financial markets easily.

The integration of AI technology and robo-advisors has revolutionized how investors access and utilize real-time data updates. As AI technology combined with online trading platforms reduces research time and improves accuracy by automating research and data-driven decision-making, with the requirement of less time spent on researching and more time overseeing actual trades, the adoption of such platforms is increasing rapidly by retail traders and investors. Thus, online trading platform providers in the United States are adopting technology-based advancements in their online trading platforms.

The increasing risk of counterfeiting activities in online trading platforms undermines investors' and traders' confidence and trust in the platform providers. The counterfeiting activity experienced by the user related to financial products offered on the platform may result in a lack of trust and adoption, reducing trading activities and thereby hindering the growth of the online trading platform market.

During the lockdown caused by the coronavirus, trading in stocks using mobile phones increased as more and more common investors converged to stock markets. In the future, users will increasingly use mobile media to access important advancements in trading and investing, thereby accelerating the trend of trading via smartphones. The US Census Bureau assessed smartphone sales at USD 74.7 billion in 2022-2023. It is more sophisticated than traditional trading, completed quickly and easily using a computer. Transactions may be placed fast and effortlessly while utilizing a mobile device, which adds to the convenience of transacting. Mobile trading gives a trader total control over the capital and eliminates any influence from outside parties, such as a broker.

US Online Trading Platform Market Trends

Increasing Accessibility and the Rise in the Adoption of Smartphones is Expected to Drive the Market Growth

  • Smartphones have been developed to provide advanced functions, improved processing power, and simple user interfaces. Trading platform providers have taken advantage of these improvements by creating mobile apps that are both seamless and user-friendly. Mobile trading apps often include streamlined interfaces, personalized notifications, and simple features that make trading more accessible and entertaining for a broader range of consumers.
  • Smartphones' accessibility and convenience have increased trading activity among retail investors. The ability to trade from any location and respond rapidly to market events has attracted many traders, previously limited by physical trading facilities or desktop programs. This increase in trading activity has aided the expansion of online trading platforms in the United States. According to ITU, as of January 2023, there were 311.3 million Internet users in the United States.
  • Moreover, smartphone popularity has increased in tandem with advances in mobile technology, such as quicker internet access, enhanced security features, and the incorporation of biometric authentication, which build trust in consumers, improves concerns about the security and reliability of mobile trading platforms and as a result, drives their adoption.
  • For instance, in September 2022, the INX Digital Company Inc., a broker-dealer and inter-dealer broker, introduced its security token trading platform and the cryptocurrency trading platform has converged and now offers a seamless and secure single point of entrance called INX ONE - the world's first and only fully-regulated, end-to-end platform for listing and trading both SEC-registered security tokens and cryptocurrencies.
  • Smartphone accessibility and usage in the United States have broadened the reach of online trading platforms. Convenience, improved user experience, real-time market updates, increased trading activity, social trading features, and technological developments connected with smartphones have all contributed to the country's growth and popularity of online trading platforms and is expected to continue over the forecast period.
US Online Trading Platform Market - Internet Users, In Million, United States, as of January 2022-2023

Platforms Offerings Segment is Expected to Hold Significant Market Share

  • The platform offerings encompass brokerage platforms, direct market access (DMA) platforms, forex trading platforms, options trading platforms, cryptocurrency trading platforms, social trading platforms, robo-advisory platforms, and mobile trading apps, each providing a range of features and services tailored to facilitate trading in various financial instruments, markets, and investment strategies.
  • Rapid technological advancements play a significant role in driving the platform offering segment. The availability of high-speed internet, sophisticated trading algorithms, mobile trading capabilities, and advanced charting tools have led to the development of more robust and user-friendly trading platforms.
  • Further, retail investors' growing interest and participation in the stock market and other financial markets have fueled the demand for online trading platforms. The ease of access, affordability, and convenience offered by these platforms have made trading accessible to a broader base of individual investors. According to GSMA Intelligence, there were 90.7% of users accessing the internet via mobile phones in the United States.
  • Moreover, the popularity of mobile trading continues to rise, with an increasing number of traders preferring to execute trades and manage their portfolios using smartphones and tablets. Online trading platforms focus on developing user-friendly mobile apps with intuitive interfaces, real-time data, and seamless order execution capabilities to cater to this trend.
  • Furthermore, Cloud-based deployment is expected to hold a significant share of the platform offering among deployment modes. Various platform types widely adopt cloud-based deployment, including brokerage platforms, direct market access (DMA) platforms, forex trading platforms, options trading platforms, and social trading platforms.
US Online Trading Platform Market - Users Accessing the Internet Via Mobile Phones, Percentage (%), United States, as of January 2022-2023

US Online Trading Platform Industry Overview

The United States Online Trading Platform market is highly fragmented and comprises prominent players like Fidelity, Charles Schwab, Merrill, E*TRADE from Morgan Stanley, Interactive Brokers, and Webull. By incorporating strategies across enhanced functionality through integrating AI, cloud, and other technological factors, the market vendors have significantly distinguished their offerings.

February 2023 - Merrill announced the launch of Merrill Video Pro, a virtual video studio for financial advisors to create content and connect with clients and prospects at scale. Merrill Video Pro enables advisors to create videos using an ever-expanding library of customizable content on topics including managing retirement goals, wealth transfer strategies, navigating markets during turbulent times, and more.

December 2022 - E*TRADE from Morgan Stanley today announced recent enhancements to its investing and trading platforms. The enhanced functionalities include client-centric approaches with the addition of new tools, control, and others. Also, Morgan Stanley announced that it made a 2023 roadmap that includes the introduction of even more customization on the LiveAction scanner through new pre-defined scans.

US Online Trading Platform Market Leaders

  1. Fidelity Investments Institutional Operations Company, Inc.

  2. The Charles Schwab Corporation

  3. Merrill Lynch, Pierce, Fenner & Smith Incorporated (Bank of America Corporation)

  4. E*Trade (Morgan Stanley)

  5. Interactive Brokers LLC

*Disclaimer: Major Players sorted in no particular order

US Online Trading Platform Market Concentration

US Online Trading Platform Market News

  • May 2023 - Etoro announced the launch of InsuranceWorld, a portfolio offering retail investors long-term exposure to the insurance sector. InsuranceWorld is a new addition to eToro's existing offering of portfolios, which already provides exposure to traditional financial sectors, such as private equity, big banks, and real estate trusts.
  • April 2023 - Twitter, a US-based company, partnered with the cryptocurrency exchange eToro to allow users to trade stocks, cryptocurrencies, and other assets on the social network's platform by using the online platform services offered by eToro, which would generate new revenue streams for the market vendors.

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 Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products and Services

      5. 4.2.5 Intensity of Competitive Rivalry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Accessibility and the Rise in the Adoption of Smartphones

      2. 5.1.2 Integration of AI Technology and Robo Advisors to Update on Real-Time Updates

      3. 5.1.3 Capabilities Such as Trade Order and Investment Management Integrated into a Single Platform

    2. 5.2 Market Restraints

      1. 5.2.1 Increasing Risk of Counterfeits

    3. 5.3 Industry Regulatory Landscape

    4. 5.4 Analysis of Active Users (Q4 2022-Q1-2023)

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Offerings

      1. 6.1.1 Platforms

      2. 6.1.2 Services

    2. 6.2 By Deployment Mode

      1. 6.2.1 On-Premises

      2. 6.2.2 Cloud

    3. 6.3 By Type

      1. 6.3.1 Beginner

      2. 6.3.2 Advanced

    4. 6.4 By End-user

      1. 6.4.1 Institutional Investors

      2. 6.4.2 Retail Investors

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles*

      1. 7.1.1 Fidelity Investments Institutional Operations Company Inc.

      2. 7.1.2 The Charles Schwab Corporation

      3. 7.1.3 Merrill Lynch, Pierce, Fenner & Smith Incorporated (Bank of America Corporation)

      4. 7.1.4 E*Trade (Morgan Stanley)

      5. 7.1.5 Interactive Brokers LLC

      6. 7.1.6 Webull Financial LLC

      7. 7.1.7 Trading Technologies International, Inc. (7RIDGE)

      8. 7.1.8 eToro

      9. 7.1.9 Robinhood Markets Inc.

      10. 7.1.10 Tradestation Group Inc.

      11. 7.1.11 Coinbase Global Inc.

      12. 7.1.12 BAM Trading Services Inc. (Binance.US)

      13. 7.1.13 The Vanguard Group Inc.

  8. 8. INVESTMENT ANALYSIS

**Subject to Availability

US Online Trading Platform Industry Segmentation

The US online trading platform market is defined based on the revenues generated from solutions used by various end users across the United States. The analysis is based on the market insights captured through secondary research and the primaries. The market covers major factors impacting the market's growth in terms of drivers and restraints. The scope of the study has been segmented based on the offerings (platforms and services), by deployment (cloud and on-premises), by type (beginner and advanced), and by end-user (institutional and retail investors) across the United States. The market sizes and forecasts are provided in terms of value in USD million for all the above segments.

The study tracks key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study also tracks the revenue accrued from the solutions used in various end-user industries across the United States. In addition, the study provides the US Online Trading Platform market trends and key vendor profiles. The study further analyzes the overall impact of COVID-19 on the ecosystem.

By Offerings
Platforms
Services
By Deployment Mode
On-Premises
Cloud
By Type
Beginner
Advanced
By End-user
Institutional Investors
Retail Investors

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Frequently Asked Questions

The US Online Trading Platform Market is projected to register a CAGR of 6.11% during the forecast period (2023-2028).

Fidelity Investments Institutional Operations Company, Inc., The Charles Schwab Corporation, Merrill Lynch, Pierce, Fenner & Smith Incorporated (Bank of America Corporation), E*Trade (Morgan Stanley) and Interactive Brokers LLC are the major companies operating in the US Online Trading Platform Market.

US Online Trading Platform Industry Report

Statistics for the 2023 US Online Trading Platform market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Online Trading Platform analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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