Europe E-Brokerages Market - High Online Banking Penetration Boosts the E-Brokerage Market 2023 - 2028

DUBLIN, July 26, 2023 /PRNewswire/ -- The "Europe E-Brokerages Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)" report has been added to ResearchAndMarkets.com's offering.

The Europe E-Brokerages market has witnessed substantial growth in the current year, generating a remarkable revenue of about 5.2 USD billion. This flourishing market is projected to achieve a Compound Annual Growth Rate (CAGR) of approximately 8% over the forecast period.

Online brokerage, characterized by the selling of securities such as stocks, bonds, mutual funds, and warrants over the internet, has transformed the European brokerage landscape.

Initially dominated by local banks operating through traditional brick-and-mortar models, the market saw the emergence of new-age fintech companies, leveraging technology to introduce the e-commerce business model with highly competitive pricing structures. Presently, both banks and e-brokers are harnessing technology to provide online trading platforms and services, transforming the way investors engage with financial markets.

Several structural growth drivers are propelling the European online brokerage market's expansion. Increasing fintech services penetration, rising financial assets, evolving investor behavior, and other factors contribute to this dynamic growth. Moreover, the market is continually evolving and fiercely competitive. The retail brokerage industry has experienced significant consolidation, a trend expected to persist, exerting competitive pressures in the industry.

The Europe E-Brokerages market presents varying investment styles and trade execution frequency across countries. Brokerage firms in the Eurozone predominantly rely on trade commissions rather than active monetization of bid/ask spreads and trading flow.

This risk-averse model is driven by regulatory scrutiny and the demand for cost transparency from customers. International brokerage providers operate with diverse business models, often offering exposure to financial markets through derivatives like CFDs without physical asset ownership options. Settlement costs differ significantly among these providers based on their core businesses and country-specific factors.

Europe E-Brokerages Market Trends

Growing Retail Investors Propel the E-Brokerages Market

The Europe region has witnessed a notable surge in retail investors since 2020. The work-from-home culture during the pandemic led to increased interest in investment opportunities among individuals. Some sought to build financial safety nets amidst economic uncertainty, driving retail investors to explore European markets. E-brokers, both traditional and online, developed custom e-trading platforms to attract this new wave of retail investors.

Lower financial barriers, simplified account management, and readily available data through user-friendly interfaces accelerated the growth of retail investors. Major UK-based online trading platform Freetrade witnessed an impressive influx of almost 160,000 new users in January 2021 alone and reached a million-user milestone by October 2021.

High Online Banking Penetration Boosts the E-Brokerage Market

Europeans' adoption of internet banking has surged over the years, with more than half of adults using this facility. The use of internet banking has more than doubled since 2007, gaining popularity among 25 to 34-year-olds and highly educated individuals. Notably, Norway boasts the strongest internet banking penetration, followed by Denmark and Iceland. The increasing use of digital banking services and growing confidence in electronic payment systems have contributed to the expansion of the Europe E-Brokerages market.

Europe E-Brokerages Industry Overview

The European E-Brokerages market comprises numerous companies with varying market shares in each country. Intense competition characterizes the industry, with large e-brokerages extending their services across multiple countries to cater to a diverse user base. To remain competitive, e-brokerages compete on fees for retail investors, leveraging their large user bases to lower costs. Key players in the market include Interactive Brokers, EToro, Saxo Group, Degiro, Plus 500, Trading 212, Exante, X-Trade Brokers, Robinhood, Swissquote, and others.

A selection of companies mentioned in this report includes

• Interactive Brokers
• Etoro
• Plus500
• Saxo Group
• Trading 212
• Degiro
• Exante
• X-Trade Brokers
• Robinhood
• SwissQuote
• BUX
• Vanguard
• Capital.Com
• Tradestation
• Freetrade
• Hargreaves Lansdown
• IC Market

For more information about this report visit https://www.researchandmarkets.com/r/p5bg7g

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