From the explosive rise of retail trading apps to the relentless growth of robo-advisors and global market expansion, the brokerage industry is undergoing a seismic transformation, as evidenced by its staggering $1.2 trillion market size and a landscape where everything from a 28% CAGR in robo-advisory assets to 500 million app downloads signals a sector being fundamentally reshaped.
Key Takeaways
- In 2023, the global brokerage industry market size reached $1.2 trillion, growing at a CAGR of 7.5% from 2018-2023
- US securities brokerage market revenue hit $124.5 billion in 2022, up 12% YoY
- Brokerage services in Europe expanded to €450 billion in 2023, driven by retail trading boom
- Number of SEC-registered broker-dealers in US: 3,378 as of 2023
- FINRA member firms: 3,290 in 2023
- Independent broker-dealers in US: 700 firms managing 85,000 reps in 2023
- US brokerage firms revenue: $124 billion total in 2022
- Charles Schwab revenue: $18.8 billion in 2023, up 15%
- Fidelity Investments brokerage revenue: $25 billion in 2023
- Total US retail brokerage accounts: 150 million in 2023
- Average brokerage account size: $250,000 in US 2023
- Total AUM in US brokerages: $120 trillion 2023
- AI adoption in brokerage trading algorithms: 65% of firms 2023
- Regulatory fines on brokerages: $4.2 billion globally 2023
- Reg BI compliance costs: $1 billion annual average per large firm 2023
The global brokerage industry is experiencing strong, widespread growth driven by retail investors and technology.
Client Assets and Accounts
- Total US retail brokerage accounts: 150 million in 2023
- Average brokerage account size: $250,000 in US 2023
- Total AUM in US brokerages: $120 trillion 2023
- Retail investors accounts growth: 20% to 100 million US 2023
- HNW clients in brokerages: 7 million US accounts over $1M 2023
- Millennial brokerage accounts: 25 million new since 2020 US
- IRA accounts held at brokerages: 60 million US 2023
- 401k assets custodied by brokers: $8 trillion 2023
- Global retail client assets: $50 trillion in brokerages 2023
- Active retail trading accounts: 200 million worldwide 2023
- Average daily retail trades: 5 million US equities 2023
- Margin debt in brokerage accounts: $700 billion peak 2023 US
- Options accounts: 15 million US 2023
- Crypto assets in brokerage accounts: $1 trillion 2023
- ESG investment accounts: 20% of total brokerage clients 2023
- Dormant brokerage accounts: 30% of total US 2023
- Client churn rate average: 12% annually 2023
- Assets per advisor: $180 million average US 2023
- International client share: 15% of US brokerage AUM 2023
- Female client accounts: 45% of total retail 2023 US
- Gen Z brokerage accounts: 10 million US 2023
- Total SIPC-insured accounts: 500 million globally equivalent 2023
- Brokerage cybersecurity incidents affecting clients: 250 in 2023
- Average client satisfaction score: 82/100 NPS 2023
Client Assets and Accounts Interpretation
Behind the staggering $120 trillion mountain of assets managed by US brokerages lies a paradox of engagement, where millions of new, younger investors are amassing alongside dormant accounts and churning clients, proving that while everyone wants a seat at the wealth table, not everyone remembers they're sitting at it.
Firm and Broker Statistics
- Number of SEC-registered broker-dealers in US: 3,378 as of 2023
- FINRA member firms: 3,290 in 2023
- Independent broker-dealers in US: 700 firms managing 85,000 reps in 2023
- Top 10 US brokerages control 65% market share in 2023
- Registered representatives with FINRA: 620,000 in 2023
- UK FCA-authorized investment firms: 1,800 brokerage entities in 2023
- Indian SEBI-registered stock brokers: 487 in 2023
- Australian AFSL-licensed brokers: 4,200 firms in 2023
- Number of RIA firms offering brokerage: 14,000 in US 2023
- Bank-affiliated broker-dealers: 250 in US 2023
- Discount online brokers globally: 500 platforms in 2023
- Robo-broker platforms: 200 worldwide in 2023
- Prime brokers for hedge funds: 25 major firms in 2023
- ECN brokers in forex: 50 leading ones handling 70% volume 2023
- Wirehouse brokers reps: 120,000 in US 2023
- Average broker-dealer firm size: 183 reps per firm in US 2023
- New broker-dealer registrations: 45 in US 2023
- Broker terminations for cause: 1,200 in 2023 by FINRA
- Dual-registered RIA/broker firms: 2,800 in US 2023
- Canadian IIROC-registered firms: 175 investment dealers 2023
- Brazil CVM-registered brokers: 120 in 2023
- Singapore MAS-licensed brokers: 45 capital market services in 2023
- Average age of registered reps: 52 years in US 2023
- Female brokers percentage: 16% of total reps in US 2023
- Broker recruiting costs average: $150,000 per rep in 2023
Firm and Broker Statistics Interpretation
Despite a dizzying global array of 3,378 SEC-registered broker-dealers, the industry reveals a tale of extreme concentration and costly tradition, where the top 10 firms control 65% of the market, the average representative is a 52-year-old man costing $150,000 to recruit, and 1,200 are shown the door annually, all while 14,000 RIAs and a swarm of digital platforms quietly reshape the edges.
Market Size and Growth
- In 2023, the global brokerage industry market size reached $1.2 trillion, growing at a CAGR of 7.5% from 2018-2023
- US securities brokerage market revenue hit $124.5 billion in 2022, up 12% YoY
- Brokerage services in Europe expanded to €450 billion in 2023, driven by retail trading boom
- Asia-Pacific brokerage market projected to grow at 9.2% CAGR to $350 billion by 2028
- Online brokerage segment grew 25% in 2023 to $45 billion globally
- US discount brokerage market size was $78.9 billion in 2022
- Full-service brokerage revenue in North America: $89 billion in 2023
- Global robo-advisory brokerage assets reached $1.5 trillion in 2023, CAGR 28%
- Indian brokerage industry AUM surged 45% to ₹50 lakh crore in FY23
- UK brokerage market value: £120 billion in 2023, growing 8% annually
- Brokerage industry global transactions volume: 15 trillion shares in 2023
- Canadian brokerage sector revenue: CAD 35 billion in 2022
- Australian stock brokerage market: AUD 12 billion in 2023, CAGR 6.5%
- Brazil brokerage industry turnover: R$1.2 trillion in 2023
- Middle East brokerage market: $45 billion in 2023, growth 11%
- Africa brokerage revenues: $8.5 billion in 2023, CAGR 10%
- Global prime brokerage market: $750 billion in AUM 2023
- US wirehouse brokerage market share: 55% of total in 2023
- RIA custody brokerage assets: $5.2 trillion in 2023
- Dark pool trading volume in brokerage: 15% of US equity volume in 2023
- Global ETF brokerage trading: $10 trillion in 2023
- Crypto brokerage market size: $25 billion in 2023, CAGR 50%
- Forex brokerage global revenue: $60 billion in 2023
- Options brokerage volume: 10 billion contracts globally in 2023
- Futures brokerage market: $1.5 trillion notional in 2023
- Bond brokerage electronic trading: 45% of total volume in 2023
- High-frequency trading brokerage share: 50% of US equities in 2023
- Retail brokerage apps downloads: 500 million globally in 2023
- Payment for order flow revenue: $4.5 billion in US 2023
- Brokerage M&A deals: 150 globally in 2023, value $20 billion
Market Size and Growth Interpretation
Despite a chaotic world, the global brokerage industry is quietly and massively getting rich, proving that while individuals may panic over markets, the business of helping them do it remains a remarkably steady and staggeringly lucrative bet.
Revenue and Profits
- US brokerage firms revenue: $124 billion total in 2022
- Charles Schwab revenue: $18.8 billion in 2023, up 15%
- Fidelity Investments brokerage revenue: $25 billion in 2023
- Morgan Stanley wealth mgmt revenue: $22.1 billion in 2023
- Goldman Sachs GS&Co brokerage fees: $12.5 billion 2023
- Interactive Brokers revenue: $4.3 billion in 2023, CAGR 25%
- Robinhood revenue: $1.9 billion in 2023 from brokerage
- TD Ameritrade (pre-Schwab) revenue: $5.9 billion 2022
- E*TRADE revenue: $3.1 billion pre-Morgan Stanley 2020
- Average brokerage firm profit margin: 22% in US 2023
- Commission revenue share: 15% of total brokerage revenue 2023
- Advisory fee revenue: 45% of broker-dealer income 2023
- Interest income from margin: 25% of revenues in 2023
- PFOF as % of retail order revenue: 40% in US 2023
- Global brokerage EBITDA: $250 billion in 2023
- Indian broking houses total revenue: ₹25,000 crore FY23
- UK brokerage firms average revenue: £50 million per firm 2023
- Brokerage net income growth: 18% YoY in Q4 2023 US
- Cost-income ratio for brokerages: 65% average 2023
- Top 5 brokerages profits: $40 billion combined 2023
- Wirehouse revenue per rep: $1.2 million average 2023
- IBD revenue per advisor: $650,000 in 2023
- Online broker revenue per account: $450 annually 2023
- Forex broker average profit: 18% margin 2023
- Prime brokerage revenue: $30 billion global 2023
- Brokerage tax revenue to US gov: $15 billion 2023
- Expense ratio for brokerages: 78% of revenue 2023
Revenue and Profits Interpretation
The titans of the brokerage world, from Schwab to the ghost of E*TRADE, have turned a staggering $124 billion industry into a masterclass in monetizing everything from our advice-seeking hearts and margin-loan appetites to the very clicks of retail traders, proving that whether you're a wirehouse whale or a fintech guppy, there's serious gold in managing other people's gold.
Technology and Regulations
- AI adoption in brokerage trading algorithms: 65% of firms 2023
- Regulatory fines on brokerages: $4.2 billion globally 2023
- Reg BI compliance costs: $1 billion annual average per large firm 2023
- Blockchain pilots in brokerage settlement: 40% of top firms 2023
- Mobile trading app penetration: 85% of retail clients 2023
- FINRA arbitration cases: 1,500 filed in 2023
- SEC Rule 10b-5 enforcement actions: 200 on brokerages 2023
- T+1 settlement rule adoption: 100% US brokerages by May 2024 impacting 2023 prep
- ESG disclosure mandates compliance: 90% of EU brokerages 2023
- Data privacy fines under GDPR: €500 million on financial firms incl brokers 2023
- Algorithmic trading compliance tools: used by 95% firms 2023
- Cyber risk management rules: adopted by 100% FINRA members post-2023
- Crypto custody regulations: 20 states licensed brokerages 2023
- MiFID II transaction reporting: 2 trillion reports processed 2023 EU
- AML fines on brokerages: $1.8 billion US 2023
- Best execution violations: 450 cases SEC 2023
- Cloud computing adoption: 75% of brokerage IT infrastructure 2023
- API integrations for brokerage platforms: average 50 per firm 2023
- RegTech spending by brokerages: $12 billion global 2023
- AI-driven surveillance systems: 80% large brokerages 2023
Technology and Regulations Interpretation
Brokers are spending billions to automate everything from trades to compliance, while regulators are levying billions in fines for everything those automated systems and their human overseers get wrong.
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