Research Support Specialist, USA
The global neobrokers market size is estimated to reach USD 12.55 billion by 2028, growing at a CAGR of 5.6% from 2021 to 2028, according to a new report by Million Insights. The user-friendly structure is the major factor driving the growth of the market. In addition, neobrokers help customers participate in the stock market with only a small amount of money, which has augmented the use of neobrokers. Some dangers and risks hidden in the large offers are the major restraining factors for the market. Most of the key players are offering various beneficial services like reduction in transaction costs, providing well and simplified structured app to customers, etc. to grab more share in the market.
The COVID-19 pandemic has positively impacted the global market growth. A large number of neobrokers users entered the stock market due to the coronavirus pandemic. The pandemic has resulted in people spending most of their time in their homes, which is another reason for their inclination towards the stock market. The markets have made a recovery; however, the interest remains amongst new, young investors. According to CNBC stats, the number of users is expected to increase to over 150 million in 2021.
The online brokers segment dominated the market in 2020 and is estimated to register a steady CAGR from 2021 to 2028. An online broker is an intermediary between a buyer and seller of a financial instrument. An online broker mainly permits for better control over trades, performing them much faster than was possible over the phone and allowing individual traders to handle multiple positions at once. Due to all of its benefits mentioned above, it is most the preferred type of neobrokers and thus, the online brokers segment will have significant growth.
The mobile app segment accounted for the largest revenue share in 2020. Mobile applications offer several benefits, such as cost-effectiveness, convenience, faster transactions, greater control, and better understanding. It gives customers a sense of control and the ability to mainly explore options that are well-suited for them, in their own time.
North America accounted for the maximum revenue share in 2020. The U.S. has one of the highest rates of implementation for stock trading, with more than 50% of the people owning stocks. The propagation of zero-commission stock trading apps has attracted a young generation into stock trading. In addition, the liquidity offers investors more choices of stocks with a greater number of sectors.
The report “Neobrokers Market Size, Share & Trends Analysis Report, By Type (Online Brokers, Trading Platforms), By Platform (Mobile App, Desktop Website), By Region (North America, APAC), And Segment Forecasts, 2021 - 2028” is available now to Million Insights.
Million Insights has segmented the neobrokers market on the basis of type, platform, and region: