GITNUX MARKETDATA REPORT 2024

Online Trading Platform Industry Statistics

The online trading platform industry is projected to grow significantly in the coming years driven by the increasing adoption of digital trading technologies and the rise of retail investors.

Highlights: Online Trading Platform Industry Statistics

  • The Compound Annual Growth Rate (CAGR) of the online trading platform market for the period of 2021-2026 is estimated to be 17.5%.
  • North America led the online trading platform market in 2020 with a market share of 39.7%.
  • The Asia-Pacific region is expected to see the fastest growth in the online trading platform market with the CAGR of 21.5% through 2021 to 2026.
  • By 2026, it is anticipated that the online trading platform market will reach an estimated value of $24.6 billion in the United States.
  • The revenue of the stock market & commodity exchange industry in the USA is forecasted to reach $28.5 billion in 2022.
  • Approximately 13% of online traders globally can be classified as addicts.
  • According to a survey, online trading platforms were the most popular among traders aged 18-39.
  • The most active traders are in the age group 25-34-years old, accounting for 60% of all trades.
  • The largest online trading platforms as of 2021 are TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab.
  • Retail investor accounts have soared by 233% worldwide during the pandemic, mainly driven by free trading apps.
  • The average daily users of China's Futu Holdings, a major online trading platform climbed by 137.8% in 2020.
  • The most downloaded online trading app of 2020 in the U.S. was Robinhood, with 4.3 million downloads.
  • The Electronic Trading Platforms market is expected to grow at a CAGR of over 8.77% by 2025.
  • An average of 35% online traders are 'hyperactive traders' who execute more than 10 trades a month.
  • In 2020, the suspension of commissions by several large online trading platforms led to a 19% increase in new accounts.

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In the evolving landscape of the financial market, online trading platforms have become increasingly popular among investors of all levels. Understanding the statistics and trends within the online trading platform industry is crucial for informed decision-making and strategic investment. In this blog post, we will delve into the latest industry statistics, insights, and analysis to provide valuable information for both seasoned traders and newcomers looking to navigate the digital trading realm effectively.

The Latest Online Trading Platform Industry Statistics Explained

The Compound Annual Growth Rate (CAGR) of the online trading platform market for the period of 2021-2026 is estimated to be 17.5%.

The Compound Annual Growth Rate (CAGR) of 17.5% for the online trading platform market from 2021 to 2026 indicates the average annual growth rate over this period if the growth had been steady. This statistic suggests a significant expansion in the online trading platform market, reflecting a strong market demand and adoption. Such a growth rate implies that the market is expected to nearly double in size every four years during the specified period. This knowledge can be valuable for investors, policymakers, and industry stakeholders in forecasting potential market trends, making strategic decisions, and assessing investment opportunities within the online trading sector.

North America led the online trading platform market in 2020 with a market share of 39.7%.

In 2020, North America held the top position in the online trading platform market with a dominant market share of 39.7%. This statistic indicates that nearly four out of every ten online trading platform transactions globally were attributed to North America. This implies that North America was the leading region in terms of online trading activity, showcasing its strong presence and influence in the market. This market share figure underscores the significant role of North America in shaping the online trading platform industry and highlights its competitive advantage and leadership position in this sector.

The Asia-Pacific region is expected to see the fastest growth in the online trading platform market with the CAGR of 21.5% through 2021 to 2026.

The statistic “The Asia-Pacific region is expected to see the fastest growth in the online trading platform market with a compound annual growth rate (CAGR) of 21.5% through 2021 to 2026” indicates the projected rate of expansion for online trading platforms in the Asia-Pacific region over the next five years. This suggests a robust growth trajectory in the region’s online trading sector, driven by factors such as increasing internet penetration, technological advancements, and growing investor interest in online trading. The CAGR of 21.5% signifies the average annual growth rate over the specified period, highlighting the potential for significant market development and opportunities for investors, businesses, and other stakeholders in the online trading industry across Asia-Pacific.

By 2026, it is anticipated that the online trading platform market will reach an estimated value of $24.6 billion in the United States.

The statistic suggests that the online trading platform market in the United States is expected to experience significant growth by the year 2026, reaching an estimated value of $24.6 billion. This anticipated increase indicates a growing preference for engaging in digital platforms for trading and investing activities. Factors contributing to this growth may include advancements in technology, increasing access to the internet, and a shift towards online trading among retail and institutional investors. The projected market value implies a promising outlook for the online trading industry, presenting opportunities for market players to innovate, expand their services, and cater to the evolving needs of traders and investors in an increasingly digital landscape.

The revenue of the stock market & commodity exchange industry in the USA is forecasted to reach $28.5 billion in 2022.

The statistic indicates that the revenue of the stock market and commodity exchange industry in the USA is expected to increase to $28.5 billion in 2022. This forecast suggests significant growth in the industry’s financial performance, likely driven by various factors including increased trading activity, expansion of investment products, and overall market conditions. The projected revenue figure highlights the importance and size of the industry within the US economy, indicating potential opportunities for investors and stakeholders in the stock market and commodity exchange sector.

Approximately 13% of online traders globally can be classified as addicts.

The statistic that approximately 13% of online traders globally can be classified as addicts suggests that a significant proportion of individuals who engage in online trading exhibit behaviors that are characteristic of addiction. This could include compulsive trading, obsessively checking market data, and experiencing negative consequences as a result of their trading activities. Addiction to online trading can have serious implications for individuals’ financial well-being and overall mental health. Understanding the prevalence of this issue can help policymakers, mental health professionals, and traders themselves to recognize the signs of addiction and develop interventions to prevent and address problematic trading behavior.

According to a survey, online trading platforms were the most popular among traders aged 18-39.

The statistic suggests that among traders aged 18-39, online trading platforms are the most preferred method for conducting trades. This finding indicates that younger individuals within the specified age group are more inclined towards utilizing digital platforms for their trading activities compared to other age brackets. The popularity of online trading platforms among this demographic could be attributed to factors such as convenience, accessibility, and the ability to execute trades from anywhere with an internet connection. This trend underscores the increasing digitalization and technological adoption within the trading industry, particularly among younger generations who are more comfortable with and reliant on online services for various activities.

The most active traders are in the age group 25-34-years old, accounting for 60% of all trades.

The statistic indicates that individuals belonging to the age group of 25-34 years old are the most actively engaged in trading, representing 60% of all trades conducted. This suggests that this particular age group is highly involved in financial markets and trading activities, likely driven by factors such as disposable income, technological savvy, and a growing interest in investing. The data implies that younger adults in their late 20s to early 30s are significantly contributing to market liquidity and volume through their active trading behaviors. Understanding the demographics of active traders can provide valuable insights for market analysts, brokers, and policymakers in developing targeted strategies and products to engage and serve this key segment of the trading population.

The largest online trading platforms as of 2021 are TD Ameritrade, ETRADE, Robinhood, Fidelity, and Charles Schwab.

The statement indicates the largest online trading platforms based on their market share and popularity as of 2021. TD Ameritrade, ETRADE, Robinhood, Fidelity, and Charles Schwab are well-known names in the online trading industry, offering a wide range of investment products and services to clients. These platforms have gained prominence due to their user-friendly interfaces, technological innovations, and competitive pricing structures. Investors often rely on these platforms for buying and selling stocks, ETFs, options, and other securities, as well as accessing research and educational resources to make informed investment decisions. Their presence in the market signifies their strong customer base and ability to cater to the diverse needs of individual and institutional investors.

Retail investor accounts have soared by 233% worldwide during the pandemic, mainly driven by free trading apps.

The statistic indicates that the number of retail investor accounts has increased significantly by 233% globally since the onset of the pandemic, with a primary factor being the rising popularity of free trading apps. This surge in retail investor accounts suggests a heightened interest and participation in the stock market among individual investors during the challenging circumstances brought about by the pandemic. The accessibility and ease of use of free trading apps have likely played a crucial role in democratizing investment opportunities and empowering more individuals to engage in investment activities. This trend highlights a shift towards more decentralized and individual-driven investment practices in global financial markets, potentially signaling a transformation in how investments are managed and accessed in the future.

The average daily users of China’s Futu Holdings, a major online trading platform climbed by 137.8% in 2020.

The statistic indicates a significant increase in the average daily users of China’s Futu Holdings, a major online trading platform, during the year 2020. Specifically, the average daily users saw a substantial surge of 137.8% compared to the previous year. This suggests a rapidly growing interest and adoption of online trading services offered by Futu Holdings among users in China. Such a sharp increase in user engagement could be driven by various factors such as the convenience of online trading platforms, increasing interest in financial markets, or specific marketing strategies employed by Futu Holdings. Overall, this statistic underscores a remarkable growth opportunity for the company in the online trading sector.

The most downloaded online trading app of 2020 in the U.S. was Robinhood, with 4.3 million downloads.

The statistic indicates that in 2020, the online trading app Robinhood had the highest number of downloads compared to other online trading apps in the U.S., with a total of 4.3 million downloads. This suggests that Robinhood was the most popular choice for individuals looking to engage in online trading activities during that year. The high number of downloads may be attributed to factors such as Robinhood’s user-friendly interface, low fees, and innovative features that appealed to a broad audience of investors. Overall, the statistic highlights Robinhood’s strong market presence and popularity among users seeking to participate in online trading in the U.S. in 2020.

The Electronic Trading Platforms market is expected to grow at a CAGR of over 8.77% by 2025.

This statistic indicates that the Electronic Trading Platforms market is projected to experience significant growth at a Compound Annual Growth Rate (CAGR) exceeding 8.77% by the year 2025. This suggests a positive trend in the adoption and utilization of electronic trading platforms by market participants, likely driven by factors such as technological advancements, increasing demand for efficient and reliable trading solutions, and a shift towards digitalization in financial markets. The high CAGR forecast implies a strong potential for market expansion and increased market share for electronic trading platform providers, signaling opportunities for investment and strategic positioning in this sector over the coming years.

An average of 35% online traders are ‘hyperactive traders’ who execute more than 10 trades a month.

The statistic indicates that among online traders, an average of 35% are considered ‘hyperactive traders’ because they execute more than 10 trades in a given month. This suggests that a substantial portion of online traders are actively and frequently engaging in trading activities. The term ‘hyperactive traders’ implies that these individuals are highly involved in monitoring the market and making trading decisions frequently throughout the month. This statistic sheds light on the level of activity and engagement within the online trading community, highlighting the diverse range of trading behaviors exhibited by participants in the market.

In 2020, the suspension of commissions by several large online trading platforms led to a 19% increase in new accounts.

The statistic outlines the impact of the suspension of commissions by various major online trading platforms in 2020, leading to a substantial 19% increase in new accounts. This change indicates a significant shift in consumer behavior, where the removal of trading fees incentivized more individuals to open trading accounts with these platforms. The decision to eliminate commissions likely lowered the barrier to entry for new investors, making it more accessible and attractive for individuals to engage in online trading activities. The resulting increase in new accounts reflects the influence of pricing strategies on consumer decision-making and highlights the potential for fee structures to drive market growth and participation in the trading industry.

References

0. – https://www.www.investopedia.com

1. – https://www.www.ibisworld.com

2. – https://www.www.statista.com

3. – https://www.www.ft.com

4. – https://www.www.mordorintelligence.com

5. – https://www.www.researchandmarkets.com

6. – https://www.sensortower.com

7. – https://www.www.fxstreet.com

8. – https://www.www.bloomberg.com

9. – https://www.seekingalpha.com

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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