Discount Brokerage Market Report 2025

The discount brokerage market size has grown strongly in recent years. It will grow from $25.63 billion in 2024 to $27.77 billion in 2025 at a compound annual growth rate (CAGR) of 8.4%. The growth in the historic period can be attributed to zero-commission trades, expansion of fractional shares, increasingly offer cryptocurrency trading options, expand their educational offerings, and increasing disposable income.

The discount brokerage market size is expected to see strong growth in the next few years. It will grow to $38.52 billion in 2029 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to use of gamification techniques, focus on retirement planning and savings, focus on sustainable and impact investing, expansion of high-speed internet access, and lower operational costs. Major trends in the forecast period include blockchain technology, artificial intelligence, personalization of services, integration of fintech solutions, and advanced analytics tools.

The forecast of 8.5% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through degraded trading platform performance, as low-latency execution systems and market data analytics tools, largely developed in Switzerland and France, face higher technology import costs that may be passed to consumers. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing number of retail investors is expected to drive the growth of the discount brokerage market in the future. Retail investors are individual, non-professional investors who buy and sell securities such as stocks, bonds, mutual funds, and other financial instruments for their personal accounts, rather than on behalf of an organization or institution. This rise in retail investors is fueled by the growth of technology-based platforms and services that have made investing more accessible and attractive to a broader audience. Discount brokerage services help reduce trading costs for retail investors by offering lower fees, enabling more individuals to participate in the stock market and manage their investments independently. For example, a February 2022 online survey by BNY, a US-based financial services company, sampled 2,000 US retail investors nationwide, all with at least $10,000 in investable assets. As a result, the growing number of retail investors is propelling the growth of the discount brokerage market.

Leading companies in the discount brokerage market are focusing on developing advanced web-based trading platforms to enhance trading efficiency. These platforms are online software applications that enable users to buy and sell financial instruments, such as stocks, bonds, options, futures, and cryptocurrencies, over the internet. For instance, in September 2023, HDFC Securities, an India-based financial services company, launched HDFC SKY, a discount brokerage mobile app featuring a flat pricing model for intraday and delivery trades. The app provides access to various investment options and incorporates advanced technology to ensure a seamless trading experience.

In December 2023, Mirae Asset Securities Co., a South Korea-based capital market company, acquired Sharekhan for $360 million. This acquisition is part of Mirae Asset Financial Group’s strategy to strengthen its position in India's rapidly growing retail brokerage market and to enhance its leadership in the Indian securities industry as part of its global expansion efforts. Sharekhan, an India-based financial services company, specializes in online stock trading and discount brokerage services.

Major companies operating in the discount brokerage market are Fidelity Investments Inc., Charles Schwab Corporation, Ally Financial Inc., TD Ameritrade Holding Corporation, Interactive Brokers Group Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, SoFi Technologies Inc., Robinhood Markets Inc., IG Group Holdings plc, Citadel Securities LLC, NerdWallet Inc., Acorns Grow Inc., TradeStation Group Inc., Apex Fintech Solutions LLC, Stash Financial Inc., Saxo Bank A/S, Public Holdings Inc., Wealthfront Inc., Alice Blue Financial Services Private Limited, Folio Investments Inc., OANDA Corporation, eOption, Tastytrade Inc., Zacks Investment Research Inc.

South America was the largest region in the discount brokerage market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the discount brokerage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the discount brokerage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The discount brokerage market includes revenues earned by entities by providing services such as executing buy and sell orders, offering digital trading platforms, supplying educational resources and investment tools, and delivering basic account management services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.

Discount brokerage refers to a brokerage service that enables investors to trade securities, such as stocks and bonds, at lower commission rates than those charged by full-service brokers. These services typically offer fewer advisory and personalized features, focusing primarily on executing trades at reduced costs. Discount brokers provide online trading platforms that allow investors to manage their portfolios and make investment decisions independently, making them an attractive choice for cost-conscious and self-directed investors.

The discount brokerage market operates through two primary modes such as online and offline services. Online discount brokerage services offer investors the ability to buy and sell securities - such as stocks, bonds, and ETFs - through an online platform at lower commission rates compared to traditional brokers. These services include order execution, advisory, discretionary management, online trading platforms, and educational resources. They offer various commission structures, including commission-free and fixed commission models. The target applications for these services include individual investors, enterprises, and government agencies.

The discount brokerage market research report is one of a series of new reports that provides discount brokerage market statistics, including the discount brokerage industry global market size, regional shares, competitors with discount brokerage market share, detailed discount brokerage market segments, market trends, and opportunities, and any further data you may need to thrive in the discount brokerage industry. These discount brokerage market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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