Online Trading Platform Market Expected to Reach $18.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Online Trading Platform Market," The online trading platform market was valued at $8.9 billion in 2021, and is estimated to reach $18.4 billion by 2031, growing at a CAGR of 7.8% from 2022 to 2031.

The online trading platform market is influenced by factors such as increase in use of smartphones and internet access throughout the globe. In addition, increase in demand for customized Electronic Trading Platform from end users, such as government and non-profitable banks, is anticipated to drive demand for these solutions. Technological advancements and integration of trading platforms on smartphones are few major factors expected to create various market opportunities for key players. In addition, companies in the market are focused on expanding their business units globally. In addition, rise in demand for cloud-based solutions is anticipated to be opportunistic for the Online Trading Platform Industrygrowth during the forecast period. They have countless number of advantages over previous used trading strategies.

On the basis of type, the commissions segment dominated the online trading platform market in 2021, and is expected to maintain the dominance in the upcoming years. It is because commissions could be assessed on a per-order basis. Orders placed over the course of more than one day is handled as distinct order for commission purposes. However, the transaction fees is expected to witness the highest growth rate during the forecast period, as because buyers and sellers pay transaction fees, which are payments made to banks and brokers for their services. Investors care about transaction fees as they are one of the most important predictors of net returns.

On the basis application, the institutional investors segment dominated the online trading platform market in 2021, and is expected to maintain its dominance in the upcoming years. This is because move large blocks of shares and can have a tremendous influence on movements of the stock market. It is defined as sophisticated investors who are well-informed and thus less inclined to make rash decisions and investments. However, the retail investors segment is expected to witness the highest growth rate during the Online Trading Platform Market Forecast period, as have access to a wealth of information but has less access to information that are reserved for institutional investors. Also, retail investment is more user friendly and is mostly done by new clients.

North America is a rapidly growing region in the global Online Trading Platform Industry, owing to rise in technological advancements and adoption. It possesses well-equipped infrastructure and the ability to afford online trading platform solutions. Furthermore, it is projected to show strong growth, owing to favorable urban and modern environments. Top global companies in North America are focused on the U.S., which contributes significantly in the market. The industry is developing as a result of increased investments in trading technologies (such as blockchain), as well as increase in number of online trading suppliers and government supports for global trading. According to select USA, the financial markets in the U.S. are the world's largest and most liquid. For instance, in February 2021, Plus500, an online trading platform provider based in the UK, announced its venture in North America as an expansion strategy. The company aims to expand its business units in new regions.

The current estimation of 2031 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has low impact on growth of the online trading market as the adoption of online trading solutions has increased in owing to unprecedented circumstances. Adoption of online trading platform has increased significantly during COVID due to surge in artificial intelligence in form of robo-advisory, increase in sales of smartphones and work from home policies. Post COVID-19 impact, the penetration of Electronic Trading Platform is expected to increase significantly as they offer several advantages such as they are simple to use, less expensive, and chances of error are less.

Key Findings of the Study

• On the basis of component, in 2021, the platform segment dominated the online trading platform market size. However, the service segment is expected to exhibit significant growth during the forecast period.
• Depending on type, the commissions segment generated highest revenue in 2021.
• On the basis of application, the institutional investors segment generated the highest revenue in 2021. However, the retail investors segment is expected to exhibit significant growth during the forecast period
• On the basis of region, North America dominated the market in 2021. However, Asia-Pacific is expected to witness significant growth in the upcoming years.

Some of the key industry players profiled in the report Td Ameritrade Holding Corporation, Interactive brokers, E-Trade, Profile Software, Chetu, Inc., Empirica, Pragmatic Coder, EffectiveSoft Ltd., Charles Schwab, and Devexperts llc. This study includes online trading platform market share, trends, online trading platform market analysis, and future estimations to determine the imminent investment pockets.