The report titled “The US Financial Brokerage Market Outlook to 2023 – By
Entity (Brokers and Dealers), By Type of Trading Activity (Currency, Commodity,
and Equity), By Exchange, By Type of Commodities (Agriculture and
Non-Agriculture)” provides a comprehensive analysis of the financial
brokerage market. The report covers various aspects including introduction,
issues and challenges, trends and developments, investor
profile, SWOT analysis, competitive landscape and government
regulations. The report concludes with market projection and analyst
recommendations highlighting the major opportunities and cautions.
Market Overview
The
US currently has the largest financial market in the world with the
highest market capitalization, representing the majority of the
world’s market capitalization. It is by far the most regulated
and sophisticated financial market in the world. Owing to high
competition in the brokerage industry, the existing companies and incumbent
players have devised strategy related to lowering down the brokerage fees and
expanding financial services towards asset management, mutual funds, wealth
management, algorithmic trading, top picks and other services that can lure the
customers. The industry grew at a positive CAGR during this period. In
2018, the majority of the revenue from a registered broker-dealer
came from dealership activities such as portfolio management services, advisory
services, and research support. The overall revenue in the financial brokerage
industry witnessed a rising trend on account of a reduction in
corporate tax for businesses and a falling rate of unemployment.
U.S Financial Brokerage
Market Segmentation
By Type of Trading
Activity: In
the financial brokerage market, the equity segment has dominated the overall
market in terms of transaction volume throughout 2013-2018 which was
supplemented by higher liquidity in equity, issuance of bonus shares in
few instances thereby justifying the considerable share of equity in the
overall market. Commodities on the other
side have been the second the largest category in the financial
market, in terms of transaction volume over the years resulting from an
attractive risk/return ratio. Currency the market is considered to
be as the least volatile segment since the variations in the currency
rates tends to be extremely lower.
By Entity: The share of dealership
revenue in the overall revenue from financial brokerage market has been
steadily increasing between 2013 and 2017, which is on account of increased
demand for portfolio management services and advisory services by the
investors. In 2018 the dealership has dominated the financial brokerage market
in terms of revenue share and accounted for more than half of the share in the
market. On the other hand, brokerage accounted for the remaining share.
By Exchange: In 2013, ICE acquired
NYSE Euronext, the parent company of the New York Stock Exchange, as a
result of which ICE got the privilege to run NYSE’s trading floor and the
highest number of contracts executed in 2018 in the exchange was recorded for
gas, while coffee witnessed the highest growth in the number of
contracts, growing at a double-digit CAGR during the
period 2013-2018. The exchange suffered a decline in transaction volume at
a single digit CAGR during the period 2013-2018 as its market share
was being absorbed by CME.
By Type of
Commodities: In the US,
the commodities market has been dominated by nonagricultural
commodity trades as they consistently comprised over 90% of the total contract
volumes every year between 2013-2017. Amongst the nonagricultural commodities,
equities, interest rates, and energy contracts have dominated the segment.
The primary reason behind the dominance of nonagricultural
commodity contracts is due to the nature of the US economy, as it is more inclined
towards industries than agriculture.
Competitive Landscape
The U.S Financial Brokerage market is
highly concentrated in nature and is consolidating at the
moment. LPL Financial is the market leader and has the highest market
share in the Financial Brokerage market in the US on the basis
of revenue in 2017. This was
followed by Ameriprise Financial Services Inc, Raymond James
Financial Services Inc., Interactive Brokers, Commonwealth Financial
Network, MML Investors Services, and others. These market players
compete in the brokerage market in the USA on the basis of commissions charged,
quality of supplementary services and technology and reputation.
The total revenue from US Financial
brokerage Industry is expected to rise at a positive CAGR during the
period 2018 - 2023E. This is mainly supported by the projected rise in
dealership revenue as its contribution to the overall revenue is
expected to rise at a positive CAGR during the same period. There are many
reasons behind this growth, with the first one being a rise in financial
inclusion of the overall population as technology will be
leveraged to expand the area of operations. Moreover, improvements in
technology will lead to a reduction in operational costs, the benefit of which can
be passed on to the consumers as brokerage firms compete to stay relevant
in the market. It is also estimated that an increase in market volatility
resulting from the rise of new industries such as renewable energy, switch to
electric mobility along with massive fluctuations in crude oil prices, US-China
trade war, global warming and so on combined with global political
uncertainties such as Brexit and unrest in the middle east is
expected to drive up the contract volumes of F&O contracts,
which is expected to rise at a positive CAGR during the period 2018
- 2023E.
Key Segments Covered:-
By Type of Trading Activity
Equity
Commodities
Currencies
By Entity
Brokers
Dealers
By Exchange
By Type of Commodities
Agriculture
Non Agriculture
Coffee
Sugar
Cocoa
Cotton
FCOJ
Metals & Grains
Canola
Gas
Power
Key Target Audience
Brokers
Dealers
Investment Banking and Private Equity
Firms
Government Authority
Financial Institutions
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2019E-2023E
Companies Covered:-
BGC Partners
Charles Schwab
E-Trade Financial
Corporation
Interactive Brokers Group
TD Ameritrade
Jones Financial
LPL Financial
Raymond James Financial
Voya Financial
Virtu Financial
Key Topics Covered in the Report:-
Executive Summary
Research Methodology
Introduction on US Financial
Brokerage Market
Educational Training Programs
in U.S Financial Brokerage Market
Financial Brokerage Market
Size
US Financial Brokerage Market
by Revenues
US Financial Brokerage Market
by Transaction Volume
US Financial Brokerage Market
Segmentation of Financial Brokerage Market by equity, commodities and
currencies on the basis of transaction volume, by equity market, by F&O
market, by commodity market, by agricultural commodities, by non agricultural
commodities
US Financial Brokerage Market
Government Regulation
US Financial Brokerage Market
Trends and Developments
US Financial Brokerage Market
Issues and Challenges
Comparative Analysis of U.S
Financial Brokerage Market with Global Market
Competition Scenario and
Market Share of Major Players in Comparative Analysis of U.S Financial
Brokerage Market
Company Profile of Major
Players in Comparative Analysis of U.S Financial Brokerage Market
US Financial Brokerage Market
Future Outlook and Projections
Analyst Recommendations
For More
Information, Refer To Below Link:-
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