Online Trading Platform Market Size, Share & COVID-19 Impact Analysis, By Interface Type (Desktop, Web-based, and Mobile App based), By End-Users (Banking and Financial Institutions, Brokers, and Others), and Regional Forecast, 2023-2030

The online trading platform market size was valued at USD 9.32 Billion in 2022 and is projected to grow from USD 9.94 Billion in 2023 to USD 15.34 Billion by 2030, exhibiting a CAGR of 6.4% during the forecast period. North America dominated the global market with a share of 42.27% in 2022.

An online trading platform is a software platform used to monitor live market prices and accordingly assist the user in performing the activity of selling, buying, and holding the stock. Trading platforms include services, such as trading in bonds, international currencies, stocks (shares), and other financial tools. The online trading platform solution assists banks, traders, and individual brokers evaluate the financial market opportunities and eliminate risk factors.

The increasing demand for the customized trading platform from end-users, such as government and non-profitable banks, is anticipated to drive the demand for these solutions. Technological advancements and integrating trading platforms on smartphones are few major factors expected to create various market opportunities for key players. Also, companies in the market are focused on expanding their business units across the globe. For instance,

• In February 2021, Plus500, an online trading platform provider based in the U.K., announced its venture in North America as an expansion strategy. The company aims to expand its business units in new geographic regions.

COVID-19 Impact

Online Trade Set to Plunge as COVID-19 Pandemic Upends the Global Economy

The ongoing pandemic has been triggering social stress and leading to economic disruptions across the world. With the closure of production facilities and manufacturing units around the globe, the unemployment rate has increased in countries. These outburst effects of COVID-19 are leading countries, as well as the global economy towards recession. As the COVID-19 pandemic continues, it has posed an exceptional challenge for an individual to spend over a trading platform.

The World Trade Organization (WTO) forecasts a drop in foreign trade between 13% and 32% during the pandemic. The extraordinary magnitude of this health problem, low income, and reduced resources explain the vast variety of possible outcomes. Most trade data may not yet show the effect of the pandemic on foreign trade, although some timely and leading indicators have predicted the scale of the recession and how it relates to the previous crises.

• The S&P 500 index dropped around 20% in just over three weeks and then dropped another 30% in a record 30 days.


• The Euro STOXX 50 index fell at its fastest pace in history.


• Similarly, In 2020, from February 20 to March 9, the 10-year United States Treasury note yield declined from 1.52% to 0.54%.

LATEST TRENDS

Integration of Chatbots with Trading Platforms to be an Emerging Trend 

The integration of AI-based chatbots services with electronic trading platform solutions is considered as one of the emerging trends for the growth of the online trading market size. Chatbots offer users services, such as generic FAQs, increasing access to real-time estimates, account reports, information about the trader's notifications, and market estimations.

Online trading platforms based on AI chatbots offer users custom-made information over one-to-one communication channels and assist in analyzing the key data points of traders and users. Also, chatbots can initiate and close online trading. Key players in the market are aiming to develop advanced online trading platforms based on AI chatbots.

DRIVING FACTORS

Artificial Intelligence Powered Market Insights to Drive the Adoption of Trading Platforms 

Artificial Intelligence (AI) is expected to transform the future of online trading platforms. Companies are deploying AI in their trading platforms in the form of robo-advisors. The platform also enables analysts to study the market with high precision and helps trading firms efficiently mitigate risks to provide higher returns. Some of the companies that have implemented AI and its applications with their trading platforms include:

• Tracxn Technologies (Epoque Plus)- Epoque’s completely automated AI trading comprises three engines powered by AI, including a strategy engine that analyses potential trades; an order engine that performs operational actions; and an active engine that uses machine learning to improve its performance.


• Kavout Corporation, Seattle Washington – Kavout, an AI platform, uses predictive analytics, big data, and machine learning, coupled with the company’s Kai quantitative analysis model. The platform helps traders and users to identify potential short-term winners and losers in the stock market.

RESTRAINING FACTORS

Stringent Rules and Regulations to Impede the Adoption of Online Trading Platform

Online trading software businesses are extensively regulated by government rules, foreign regulatory agencies, self-regulatory organizations, and numerous exchanges. Vendors must comply with regulatory and compliance functions. Similarly, to conduct customer activities, these vendors are obliged under certain rules mandated by primary regulators. Hence, the inability to do so may result in penalties to the vendor.  The lack of awareness about the solutions across developing nations may hamper the online trading platform market growth in the near future.

SEGMENTATION

By Interface Type Analysis

High Demand for Customized and Downloadable Trading Platforms from Brokers to Boost Desktop Segment 

Based on the interface type, the market has been segmented into desktop, web-based and mobile app based platforms. Among them, the desktop segment is predicted to capture the largest market share during the estimated period. The growth is due to the increasing demand for downloadable trading platform through which trader scan and edit the online trading positions with the help of graphs and other indicators.

The mobile app based segment is expected to grow substantially during the forecast period (2023-2030). Growing usage of smartphones and adoption of media devices, social media platforms helps to boost the demand of mobile app based trading platforms. This factor is expected to enhance the online trading market growth of the mobile app based trading platform segment.

By End-users Analysis

Rising Demand for Cloud-based Trading Solutions Will Support the Brokers Segment

Based on end-users, the market is distributed into banking and financial institutions, brokers, and others. The banking and financial institutions segment is probable to hold the largest online trading platform market share during the forecast period. The segment's growth is mainly due to the surging adoption of customer-made trading software deployment across banking and financial institutions.

• For instance, in January 2021, Deutsche Bank integrated with Sharekhan Ltd. to develop and launch db TradePro, an online trading platform. The trading platform offers users services, such as interactive account options, competitive brokerage rates, effective research, and online banking services.

The broker segment is projected to display a significant growth rate during the projection period. This is attributable to the escalating implementation of cloud-based trading solutions across broker firms to advance an in-depth analysis of threats and lessening complexity.

REGIONAL INSIGHTS 

Geographically, the market for online trading platforms is divided across five major regions, namely, North America, Asia Pacific, Europe, South America, and the Middle East & Africa.

North America is expected to dominate the market during the forecast period. The growth in the region is mainly owing to the presence of major players, such as EffectiveSoft Ltd., ETNA, Artezio LLC., Chetu Inc., TD Ameritrade Holding Corporation, and others. Also, key players in the market are planning to expand their business presence globally.

Europe is expected to grow with a significant CAGR during the forecast period (2023-2030). Private banking institutions in countries such as France, Germany, Italy, Spain, Benelux, and others, are highly investing in adopting electronic trading platform solutions. Key players in the market are planning to develop an advanced trading platform. For instance,

• In January 2021, Binomo introduced online trading platform based on real-time analysis and forecasting. The platform consists of around ~900,000 brokers from over 130 countries.

Asia Pacific is amongst the fastest-growing regions in the market. Banking and financial institutions in countries such as China, Japan, India, Oceania, South Korea, and Southeast Asia are increasing their investments to adopt customized trading platforms solutions. These countries have a wide number of providers of electronic trading platform solutions and services. Governments and enterprises in countries such as Japan, South Korea, and Oceania are also encouraging the adoption of cryptocurrency. The adoption of cryptocurrency would assist in creating various market opportunities for key players in the upcoming years.

The growth in South America and the Middle East, and Africa (MEA) is projected to exhibit stable growth. Companies in these regions have started focusing on developing trading platform solutions for the diverse banking and financial industries.

KEY INDUSTRY PLAYERS

Key Players Develop Innovative Trading Platform Solutions to Strengthen their Positions

The competitive landscape of the market is moderately fragmented with the presence of well-known brands, along with some regional and local players. TD Ameritrade Holding Corporation, Interactive brokers, E-TRADE, Chetu Inc., Ally Financial Inc., Merrill Edge, and Plus500 are the prominent players in the global market. In addition, key players in the market are deploying trading platform solutions with advanced technologies, such as AI, cloud, and others, to advance their products and offer cutting-edge solutions. They aim at high investments in R&D, mergers & acquisitions, and enhanced procurement processes in the case of software services.

List of Key Companies Profiled:

• Td Ameritrade Holding Corporation (U.S.)


• Interactive brokers (U.S.)


• E-TRADE (U.S)


• Profile Software (U.K.)


• Chetu Inc. (U.S.)


• Empirica (Poland)


• Pragmatic Coder (Poland)


• EffectiveSoft Ltd. (U.S.)


• Rademade Technologies (Estonia)


• Devexperts LLC (Germany)

KEY INDUSTRY DEVELOPMENTS:

• October 2022 – Serie A Club, ACF Fiorentina partnered with XTrend a financial trading service provider and makes XTrend new official online trading partner of Serie A Club ACF Fiorentina. This partnership helps to enhance the focus of Fiorentina's on international financial markets in next few years.


• June 2022 – City Bank and Bank of America founded new independent company “Octaura” that helps to develop open-market electronic trading platform to handle collateralized loan obligations (CLOs) and syndicated loans in real time.


• December 2021 - Vakrangee Digital Ventures Limited forms partnership with Upstox to deliver online trading account opening services to the customers via BharatEasy app.


• June 2021- Tradeweb Markets Inc. has completed acquisition of Nasdaq's electronic fixed income trading platform called eSpeed. The acquisition expands Tradeweb's product offerings and provides trading flexibility in the US Treasury's wholesale market.


• July 2020 – E-Trade launched an E-TRADE Equity Edge Online (EEO) Developer Platform. It is amongst the first API developer platforms.


• May 2020 – Devexperts LLC launched a DXtrade trading platform for CFD/FX brokers. It provides brokers back office settings and configurable client-facing layouts that allow brokers to minimize operational overheads via automation.

REPORT COVERAGE

The market research report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and leading product applications. Besides this, it offers insights into the key market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope and Segmentation