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.

 

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