How the brokerage industry will look like in 2024, according to Devexperts

Rick Steves

“Devexperts has seen a prominent trend emerging, which will continue to evolve in 2024, where clients are eager to take back full control of their businesses. Being given the choice between buying solutions or building internally, Devexperts’ hybrid model is being used by clients to gain quick market entry and cost-efficiency. This approach aligns with the rise of all-encompassing solutions for execution, clearing, and back-office operations, allowing brokers, both mature and new to market, to control and concentrate on core business aspects.”

Devexperts has come forward with its financial industry trend predictions for 2024, with a particular focus on a significant shift in broker services and client relationships.

The provider of financial software and services for brokerages, exchanges and wealth management firms in equity, options, futures and Forex markets says this shift is partly driven by decreased broker revenue post-pandemic and the transition towards zero commission models, which has increased operational expenses. Brokers are adapting by offering a broader range of trading options to boost potential earnings.

Brokers going multi-asset beyond US market, the rise of Options and 24/7 trading

In 2024, brokers are expected to extend their services globally, moving beyond the US market. This expansion will encompass global stock and ETF trading, as well as a variety of other asset classes.

The company observes a growing trend in Options trading volumes, surpassing Futures trading. This change, along with heightened regulatory compliance and the unpredictable nature of cryptocurrency markets, presents new challenges for brokers.

Traders are increasingly demanding access to diverse global markets and multi-asset trading options available 24/7. This trend is particularly strong in the United States, where 24×7 markets are becoming more popular.

Michael Sprachman, Director at Devexperts, said the company can address the trend where both established and emerging brokers seek more control over their business operations by offering them comprehensive solutions for execution, clearing, and back-office operations.

“Devexperts has seen a prominent trend emerging, which will continue to evolve in 2024, where clients are eager to take back full control of their businesses. Being given the choice between buying solutions or building internally, Devexperts’ hybrid model is being used by clients to gain quick market entry and cost-efficiency. This approach aligns with the rise of all-encompassing solutions for execution, clearing, and back-office operations, allowing brokers, both mature and new to market, to control and concentrate on core business aspects.”

The focus on regulatory requirements in global markets is leading to more structured changes across the industry. Notably, there’s a shift from omnibus relationships to disclosed relationships in broker and end-destination account structures.

Devexperts said it aims to create a complete ecosystem in 2024 and beyond, enabling brokers to maintain ownership of their businesses while collaborating with multiple counterparties. This strategy is designed to enhance their marketplace presence and operational efficiency.

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