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The entry of startups into retail stocks trading changed the entire industry by pushing trading prices down and opening expensive stocks to consumers in the mass market.
A few years ago, startups like Robinhood, eToro, and Freetrade began pulling the carpet out of established stock trading platforms by lowering fees, introducing broken stocks, and providing heavily gamified interfaces to ultimately democratize the stock market and generate income by opening up the space to new consumer demographics.
Now older digital trading platforms like TD Ameritrade and E * Trade, as well as established heavyweights like Fidelity and JPMorgan Chase, have started to fight back by lowering and consolidating their own fees to bolster their digital skills.
As a result, startups and established companies are now facing the risk of a race to the bottom in terms of prices to stay competitive. The tough competition is driving both camps to produce unique selling points beyond low prices, which is further changing the industry.
By doing Development of digital stock trading Insider Intelligence explains how startups sparked change in the stock trading industry. gives an overview of the most important players in today's stock market and where startups like Robinhood fit in; examines how the increasing appetite for self-directed investing creates a growing market opportunity for startups and established trading platforms; discusses the characteristics that distinguish startups from legacy trading platforms; and explore other new entrants vying for a portion of this market.
It also examines how older trading platforms innovate to fend off newer competitors. how both startups and established companies struggle to stay ahead; and what key trends we anticipate for the future of the equity trading industry.
Companies featured in this report include: Amazon, Apple, Atom, Ayondo Markets, Bux, Charles Schwab, Citadel Securities, Coinbase, Commonstock, ErisX, eToro, E * Trade, Loyalty, Freetrade, Goldman Sachs, Interactive Broker, Invesdor, JP Morgan Chase, JP Morgan Chase Securities, Lunar, MarketSnacks, Merrill Edge, Merrill Lynch, Morgan Stanley, Pepper, Public, Revolut, Robinhood, Scalable Capital, SoFi, Square, Stake, Stockpile, TD Ameritrade, Handel 212, Trio, TrueLayer, UBS, YouInvest, Vanguard, Virtu Financial, Wealthfront and Xinja.
Here are some of the key takeaways from the report:
- Global assets under management (AUM) of online investment platforms rose from £ 250 billion in 2013 to £ 500 billion in 2017, with 2.2 million new accounts opened during the reporting period. Per FCA data cited by the Raconteur.
- Over 25% of US adults with internet access are self-governing investors and traders. according to Aite Group, with this group growing at 4.9% versus 1.4% faster than the recommended dealers. Per Celent.
- Younger traders and investors come to the fore: 57% of Generation Z respondents would consider investing in stocks, the highest proportion among the age groups surveyed – but only 10% of Generation Z respondents have already invested. Per Finder. This provides a market opportunity for stock trading and investment platforms.
- As the interest rates and stock markets of the pandemic savings products fluctuate more dramatically, trading platforms have the opportunity to attract more users – if they can offer them unique value-added features that go beyond low prices.
In full the report:
- Explains how start-up trading platforms have sparked changes in the industry, with features like low prices and gamified interfaces.
- Provides an overview of the key players in the stock trading industry and explains how free trade deals are carried out.
- Investigates why more and more consumers are attracted to self-directed investing and trading and how trading platforms can harness this appetite.
- Lists players from outside the stock trading industry who are turning around in search of a market share for themselves.
- Investigates why established trading platforms still pose a threat to tech-savvy newbies on their turf.
- Provides examples of how established trading platforms defend themselves against startup disruptors.
- Presents key trends that we expect will shape the retail industry for years to come.
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