Online Trading Platform Market Analysis

Online Trading Platform Market Overview

Online Trading Platform Market Size was valued at USD 9.1 Billion in 2022. The Online Trading Platform market industry is projected to grow from USD 9.7 Billion in 2023 to USD 16.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.80% during the forecast period (2023 - 2032).

Smartphone and internet connectivity usage are increasing globally, and end users like governments and nonprofit banks are becoming more in need of specialist trading platforms, are the key market drivers enhancing the market growth. 

Figure 1: Online Trading Platform Market, 2018 - 2032 (USD Billion)

Interface Type: Secondary Research, Primary Research, MRFR Database and Analyst Review

Online Trading Platform Market Trends

Global changes in the use of smartphones and the accessibility of the internet, among other things, have an impact on the market for online trading platforms. Furthermore, it is anticipated that end users would need more personalised trading platforms, such as governments and non-profitable banks, which will increase demand for these solutions. Technology advancements and the incorporation of trading platforms on smartphones are two significant factors that are projected to present a range of market prospects for key participants. Businesses in the sector are also focusing on expanding their corporate divisions abroad. Additionally, it is predicted that during the projection period, the market may benefit from the rise in demand for cloud-based solutions. They offer countless advantages over prior trading strategies. Some of the factors propelling the growth of the online trading platform market include the requirement for market monitoring, the rise in end-user demand for customised trading platforms, and simple and economical features.

Artificial intelligence (AI) is expected to alter future internet trading platforms. Businesses are utilising Al on their trading platforms in the form of robo-advisors. The technology also makes it possible for analysts to do extremely accurate market analysis and helps trading companies reduce risks to effectively increase returns. Al and its services have been incorporated into the trading platforms of the following companies: Tracxn Technologies' (Epoque Plus) completely automated Al trading is powered by three Al-powered engines, including a strategy engine that assesses prospective deals, an order engine that completes operational chores, and an active engine that uses machine learning to improve performance. Kavout Corporation, Seattle, Washington is another Big data, machine learning, and predictive analytics are all combined with the Kai quantitative analytical paradigm in the Al platform Kavout. The programme helps users and traders identify potential short-term winners and losers on the stock market.

Growth in global digitization is anticipated to be a major driver of market expansion. The digital economy is expanding swiftly on a global scale. The largest global engine of innovation, competitiveness, and economic expansion is it. Similar goods and services that are offered through computerised devices and electronic networks like the Internet in the traditional economy are the principal products of the digital economy. Technology advancement is a significant trend that is gaining popularity in the industry for online trading platforms. Online trading platform developers and service providers place a strong emphasis on a range of product development analytics in order to provide a user-friendly and sophisticated platform for trading and investing. For instance, online trading company E*TRADE Financial Corporate Services, Inc. launched the Equity Edge Online (EEO) developer platform in July 2020 from its US-based headquarters. The Developer Platform has made it possible to automate, streamline, and scale previously analogue procedures, saving clients' time that would have been spent on administrative tasks.

The demand for customised trading platforms from end users like governments and non-profitable banks is expected to expand, which would also help the market for these solutions grow. Electronic trading platforms can greatly contribute to the expansion of government securities markets when trade volumes have achieved or have the potential to reach a specific minimum critical mass.  Thus, driving the Online Trading Platform market revenue.

Online Trading Platform Market Segment Insights

Online Trading Platform Interface Type Insights

The Online Trading Platform Market segmentation, based on Interface type, includes desktop, web-based, and mobile app based. Desktop segment accounted for the largest revenue share in 2022. The move is the result of a rise in demand for trading platforms, which traders may download and use to check and adjust their online trading positions using graphs and other indicators. It is anticipated that the mobile app-based market would grow significantly over the anticipated time frame. The growing use of smartphones, media devices, and social media platforms all contribute to the need for mobile app-based trading platforms. This factor is expected to hasten the growth of the online trading market's mobile app-based trading platform sector.

Online Trading Platform End User Insights

The Online Trading Platform Market segmentation, based on end user, includes banking and financial institutions, brokers, and others. Banking and financial institutions segment dominated the Online Trading Platform Market in 2022. This is because stock market fluctuations are greatly influenced by the movement of huge blocks of shares. It is described as a group of knowledgeable, experienced investors who avoid making rash decisions and investments. Retail investors are expected to grow at the highest rate over the Online Trading Platform Market Forecast period because they have the widest access to information, whereas institutional investors have less access to information that is solely available to them. Retail investment is becoming more popular and is also simpler for new clients to use.

Figure 2: Online Trading Platform Market, by End User, 2022 & 2032 (USD Billion)

Interface Type: Secondary Research, Primary Research, MRFR Database and Analyst Review

Online Trading Platform Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Online Trading Platform Market dominated this market in 2022 (45.80%). The presence of significant corporations like EffectiveSoft Ltd., ETNA, Artezio LLC, Chetu Inc., TD Ameritrade Holding Corporation, and others in the neighbourhood is substantially to blame for its development. Major industry players also want to expand their business footprint internationally. Further, the U.S. Online Trading Platform market held the largest market share, and the Canada Online Trading Platform market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: ONLINE TRADING PLATFORM MARKET SHARE BY REGION 2022 (USD Billion)

Interface Type: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Online Trading Platform market accounted for the healthy market share in 2022. In countries like France, Germany, Italy, Spain, the Benelux, and others, private banking institutions are substantially investing in the implementation of electronic trading platform solutions. The top players in the market want to build a cutting-edge trading platform. For instance, in January 2021, Binomo introduced an online trading platform based on real-time analysis and forecasts. On the website, there are almost 900,000 brokers from more than 130 nations. Further, the German Online Trading Platform market held the largest market share, and the U.K Online Trading Platform market was the fastest growing market in the European region

The Asia Pacific Online Trading Platform market is expected to register significant growth from 2023 to 2032. In countries like China, Japan, India, Oceania, South Korea, and Southeast Asia, banking and financial institutions are increasing their investments in solutions for specialised trading platforms. In these countries, there are several service and solution providers for electronic trading platforms. Governments and businesses are supporting the adoption of cryptocurrencies in a number of countries, including South Korea, Japan, and Oceania. In the coming years, the acceptance of cryptocurrencies will contribute to the development of a number of market opportunities for significant firms. Moreover, China’s Online Trading Platform market held the largest market share, and the Indian Online Trading Platform market was the fastest growing market in the Asia-Pacific region.

Online Trading Platform Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Online Trading Platform market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Online Trading Platform industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Online Trading Platform industry to benefit clients and increase the market sector. In recent years, the Online Trading Platform industry has offered some of the most significant advantages to medicine. Major players in the Online Trading Platform market, including Td Ameritrade Holding Corporation, Interactive brokers, E-TRADE, Profile Software, Chetu Inc., Empirica, Pragmatic Coder, EffectiveSoft Ltd., Rademade Technologies, and Devexperts LLC, are attempting to increase market demand by investing in research and development operations.

TD Ameritrade is a stock brokerage with offices in Omaha, Nebraska. The company offers a wide variety of online trading and investment options for self-directed investors and traders, as well as tools for online stock trading, long-term investing, and retirement planning. As the integration with Schwab develops, starting in July 2022, TD Ameritrade will introduce a number of new goods and services to its thinkorswim trading product line. Thanks to the most recent charting and programming tools that allow for greater desktop customisation, Thinkorswim traders are more aware and in control than ever. These integrated capabilities allow a better and more productive web trading environment for mobile users by contextualising market movements.

The goal of Devexperts, a developer and distributor of capital markets software systems, is to supply the world's financial sector with cutting-edge technological solutions. With a focus on technical excellence and the provision of specialised software products, the company helps businesses in the financial industry grow, adapt, and achieve a technological edge. It specialises in developing exchange solutions, trading platforms for equities, derivatives, FX, cryptocurrencies, and wealth management. Devexperts LLC announced the DXtrade trading platform for CFD/FX companies in May 2020. Brokers can automate operating costs by employing the back office settings and flexible client-facing layouts provided.

Key Companies in the Online Trading Platform market include

• Td Ameritrade Holding Corporation


• Interactive brokers


• E-TRADE


• Profile Software


• Chetu Inc.


• Empirica


• Pragmatic Coder


• EffectiveSoft Ltd.


• Rademade Technologies


• Devexperts LLC

Online Trading Platform Industry Developments

June 2021: Tradeweb Markets Inc. has completed the acquisition of eSpeed, Nasdaq's electronic fixed income trading platform. The acquisition increases Tradeweb's product offering and gives the US Treasury more trading options in the wholesale market.

Online Trading Platform Market Segmentation

Online Trading Platform Interface Type Outlook

• Desktop


• Web-based


• Mobile App based

Online Trading Platform End User Outlook

• Banking and Financial Institutions


• Brokers


• Others

Online Trading Platform Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America