United States Securities Brokerage Market to Grow with a CAGR of 3.93% through 2030F
The United States securities brokerage market is expanding
due to increased investor participation, technological advancements, regulatory
improvements, and growing demand for diverse financial products, leading to
enhanced market accessibility and efficiency.
According
to TechSci Research report, “United States Securities Brokerage Market – By
Region, Forecast & Opportunities, 2030F”, the United States
Securities Brokerage Market
was
valued at USD 201.07 Billion in 2024 and is expected to reach USD 252.58
Billion by 2030 with a CAGR of 3.93% during the forecast period. The United States Securities Brokerage Market is a crucial
component of the nation’s financial system, acting as an intermediary between
investors and the securities markets. Securities brokers facilitate
transactions in various asset classes, including stocks, bonds, commodities,
and derivatives, helping investors access and manage financial products. The
market has seen tremendous growth in recent years, driven by technological
innovation, increased investor participation, and changes in regulatory
frameworks. The rise of online brokerage platforms and the widespread adoption
of commission-free trading models have significantly transformed the landscape.
With the market's ongoing evolution, U.S. securities brokers are adapting to
new customer demands, providing more personalized, accessible, and
cost-efficient services.
The U.S. Securities Brokerage Market was
dominated by large institutional players and wealth management firms that
catered to high-net-worth individuals. However, in the past decade, retail
investors have gained significant traction, further driving market growth. The
increasing accessibility to trading platforms, the availability of fractional
shares, and the reduction of traditional brokerage fees have empowered
individual investors. A broader demographic, including millennials and Gen Z,
is now actively participating in the stock market, fueled by the growing
interest in building wealth through investments. This trend is likely to
continue as new generations become more financially literate and comfortable
with digital platforms. As a result, the securities brokerage market is
expanding, with more market participants seeking alternative investment
products beyond traditional stocks, such as cryptocurrencies, commodities, and
ESG (Environmental, Social, and Governance)-focused investments.
Technology has been one of the primary
drivers behind the market’s transformation in recent years. The rise of digital
platforms and mobile trading apps has significantly increased access to the
market, enabling individual investors to trade and manage their portfolios with
ease. Companies like Robinhood, E*TRADE, and Charles Schwab have revolutionized
the brokerage industry by offering commission-free trades and advanced
features, including real-time data, educational tools, and seamless transaction
processes. These digital platforms have made investing more accessible,
transparent, and efficient, significantly lowering the barriers to entry for
new investors and contributing to the expansion of the market. Moreover, the
advent of robo-advisors has further reshaped the market. Robo-advisors provide
automated, low-cost investment management services that use algorithms to
create and manage portfolios based on an investor’s risk profile and financial
goals. These services appeal to younger investors and those with smaller
portfolios, as they offer a more affordable alternative to traditional wealth
management. The increasing adoption of robo-advisors, alongside a growing focus
on financial technology (fintech), has propelled the securities brokerage
market toward greater automation and personalization, catering to the needs of
a broader range of investors. As fintech companies continue to develop new
tools for trading, analytics, and risk management, the technological landscape
in the securities brokerage market is expected to evolve even further.
The future of the U.S. Securities
Brokerage Market looks promising, with continued growth expected across various
sectors. As technology advances, the market will see further innovations,
including the integration of artificial intelligence, machine learning, and
blockchain technology. These technologies have the potential to enhance trading
efficiency, improve risk management, and offer more sophisticated investment
strategies to both retail and institutional investors. The increasing
popularity of sustainable investing, particularly ESG-focused investments, is
another trend that will shape the market’s future. Investors are becoming more
conscious of the environmental and social impact of their investments, and
brokerage firms are responding by offering more ESG-themed funds and tools for
screening investments based on these criteria.
Browse
over xx market data Figures spread through xx Pages and an in-depth TOC on
" United States Securities Brokerage Market”
The United
States Securities Brokerage Market is segmented into type, type of
establishment, and regional distribution.
Based
on type, Equity
Brokerage is the fastest-growing segment in the United States Securities
Brokerage Market, driven by increased retail investor participation and the
popularity of stock trading. The rise of commission-free trading platforms like
Robinhood, coupled with easy access to market data and low-cost services, has
made equity investing more accessible to a broader audience. Additionally, the
growing interest in individual stocks, exchange-traded funds (ETFs), and
fractional share investing has further fueled demand. This shift is also
supported by technological innovations in trading platforms and a new
generation of investors seeking to build wealth through equities, contributing
to rapid market expansion.
Based on region, West region is the fastest-growing
segment of the United States Securities Brokerage Market, driven by factors
such as a tech-savvy population, a booming startup ecosystem, and a strong
presence of financial institutions. The region, with hubs like Silicon Valley,
attracts younger, digitally engaged investors who favor online brokerage
platforms and low-cost trading options. Additionally, the growing interest in
sustainable and socially responsible investing, along with a focus on innovation
in financial technology (fintech), contributes to the region's rapid market
expansion. As demand for investment services increases, the West continues to
lead growth in the brokerage sector.
Major companies
operating in United States Securities Brokerage Market are:
- Fidelity
Brokerage Services LLC
- Morgan
Stanley & Co, LLC
- Merrill
Lynch Life Agency Inc.
- Interactive Brokers LLC
- JPMorgan
Chase & Co.
- Webull
Financial LLC
- Robinhood
Markets, Inc.
- Ally
Financial Inc.
- Firstrade
Securities Inc.
- Charles Schwab
Corporation
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“The United States Securities Brokerage
Market has experienced significant growth in recent years, driven by several
key factors. The surge in retail investor participation, particularly from
younger generations, has played a pivotal role in expanding market activity.
With the rise of online brokerage platforms offering commission-free trading,
investors have greater access to the stock market, fueling demand for brokerage
services. The adoption of digital platforms, including mobile apps and
robo-advisors, has made investing more convenient and affordable, further
increasing market accessibility. Additionally, advancements in technology, such
as algorithmic trading and artificial intelligence, have enhanced market
efficiency and attracted institutional investors. The growing interest in
sustainable investing and Environmental, Social, and Governance (ESG)
strategies has also contributed to market growth, with brokers offering more
ESG-focused investment options.” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based management consulting firm.
“United States Securities
Brokerage Market By Type (Derivatives and Commodities Brokerage, Stock
Exchanges, Bond Brokerage, Equity Brokerage, Others), By Type of Establishment
(Exclusive Brokers, Banks, Investment Firms, Others), By Region, Competition, Forecast
& Opportunities, 2020-2030F”, has evaluated the future growth potential
of United States Securities Brokerage Market and provides statistics &
information on market size, structure and future market growth. The report
intends to provide cutting-edge market intelligence and help decision makers
take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and opportunities
in the United States Securities Brokerage Market.
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