Neobrokers market size to reach $12.5b by 2028 (CAGR 5.6%)

Rick Steves

As key highlights, the Million Insights report stated that the Asia Pacific region is estimated to be the fastest-growing regional market from 2021 to 2028 as the number of neobroker users will increase drastically in the post-pandemic. 

A report by Million Insights has estimated that the global neobrokers market size will reach USD 12.55 billion by 2028, growing at a CAGR of 5.6% from 2021 to 2028.

Neobrokers have been increasing in popularity as their user-friendly structure attracts retail customers who look to participate in the stock market and other asset classes with only a small amount of money.

The rise of fractional shares, zero commission and social trading, and mobile apps, has given birth to the “neobroker”, but there are some dangers and risks hidden in the large offers, the report pointed out.

Bitpanda, XTB, eToro, Robinhood, Stash, Plus500, BUX, E*Trade, Webull

As key highlights, the Million Insights report stated that the Asia Pacific region is estimated to be the fastest-growing regional market from 2021 to 2028 as the number of neobroker users will increase drastically in the post-pandemic.

The trading platforms segment is likely to register the highest CAGR from 2021 to 2028, said the research firm, adding that several aspects have contributed to the development of trading platforms users, such as stock market instability, more spare time during lockdowns, and growth in the demand for the commission-free trading.

The desktop website segment  – the most convenient for analyzing price action and quick execution of orders – will also experience growth but will come behind the “trading platform” segment in terms of CAGR during that period.

The U.S. has one of the highest rates of implementation for stock trading, with more than 50% of the people owning stocks, said the report.

Key players of the neobrokers market include Bitpanda GmbH, XTB International Ltd., Trade Republic Bank GmbH, eToro Ltd., Robinhood Markets, Inc., Stash Financial, LLC, Plus500, BUX, E-Trade Financial Holdings, LLC, and Webull Financial LLC.

A neobroker that is not mentioned in that list is Public.com, which is attempting at dethroning Robinhood. The firm recently slammed Robinhood’s PFOF model and explained why its way to achieving quality execution is better for customers.

In 2021, the fintech firm saw its community growing by more than 700%. At the same time, its staff tripled to ensure the organization matures at the same pace, thus scaling the best product experience for its users.

Dutch neobroker BUX is also in a full steam mode, having launched fractional investing to clients across Europe, via investing app, BUX Zero. With this stunt, the firm has become the first broker in the Netherlands to offer fractional investing to retail clients.

BUX is following the democratization of trading trend and is making investing both accessible and affordable. The broker has previously launched zero commission trading, which is still something fresh in Europe. Fractional shares is a novelty in the old continent and BUX chose to be one of the first brokers in the region to offer such feature.

 

  • Read this next

    Fintech

    Nubank makes impressive turnaround, posting $1 billion profit in 2023

    Brazil’s Nubank has made a remarkable turnaround, swinging from a net loss in 2022 to a $1 billion net profit in 2023. The digital bank’s revenues have soared past $8 billion, marking a major milestone in its financial performance.

    Retail FX

    Spanish watchdog warns of UP MARKETS, BITBINX

    The Comision Nacional del Mercado de Valores (CNMV), the financial regulatory body of Spain, announced in a statement that it has added to its warning list new website that are illegally offering financial services to Spanish citizens.

    Digital Assets

    MicroStrategy buys 3,000 more bitcoins, suffers phishing attack

    MicroStrategy, the largest corporate investor in bitcoin, has expanded its cryptocurrency portfolio by buying an additional 3,000 bitcoins for $155 million.

    Crypto Insider

    Saudi Launches World’s First Cultural Metaverse

    The Saudi Ministry of Culture, droppGroup, and Oracle have joined forces to launch the Cultural Universe, the world’s first government-operated national Metaverse initiative.

    Retail FX

    eToro revives IPO plans after failed $10B SPAC merger

    Israeli social trading network eToro is actively exploring options for a public market listing, according to CEO Yoni Assia in an exclusive interview with CNBC.

    Digital Assets

    Meme Coin Communities Gear Up for the CoinMarketCap Crypto Awards

    CoinMarketCap’s Crypto Awards 2024, the first edition of a new annual event, is captivating the global crypto community. This is especially true for the Meme Coin Of The Year category, where voting has become a battleground for the most passionate and vibrant communities in the crypto space.

    Digital Assets

    Sui Recognized as 2024 Blockchain Solution of the Year at AIBC Eurasia Awards

    The Layer-1 Received the Top Honor at the Eurasia Awards While Experiencing a Period of Unprecedented Growth and Recognition

    Crypto Insider

    Vitalik Buterin, Sandeep Nailwal Lead Decentralized AGI Summit, Address Centralized AI Risks at ETHDenver

    Sentient and Symbolic Capital’s Decentralized AGI Summit will feature leading Decentralized AI authorities like Vitalik Buterin and Sandeep Nailwal.

    Digital Assets

    Aethir Unveils Its First Decentralized AI Node Sale

    Aethir, a leader in decentralized GPU cloud infrastructure, has announced its highly anticipated Node Sale.

    <