The global neobrokers market size was valued at USD 8.18 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.6% from 2021 to 2028. Neobrokers are financial entities that operate solely in the digital space. They are a completely new generation of online brokers that have been trying to change the market for several years. The neobrokers are mostly well-designed and easily usable. Neobrokers offer a wide variety of more economical saving plans. The economical cost structure is the major driver for the market. Moreover, the possibility to participate in the stock market with only a small amount of money is another factor that drives the market. The COVID-19 pandemic positively affected the market growth.
Brokers across the globe saw a rise in the number of new accounts and long lines to get on board post-pandemic. It requires digital onboarding of its clients and does not have physical branches to provide consultations and services. The customers can get access through an app or browser version, the stock market is more easily accessible and comfortable for users.
The neobrokers is well and simply structured, which makes the trading experience simpler for the customer. The whole process has been simplified and it is often possible to buy or sell orders with just a few clicks. Thus, its demand is high and driving the market.
After watching a dramatic downturn in March due to the COVID-19 pandemic, the investors scrambled to grab the cheap shares. The number of users drastically increased in 2020 owing to the pandemic. The markets have made retrieval, though the attentiveness remains amongst new, young investors.
The analysis estimates that the mobile app segment accounted for the largest revenue share of over 71% in 2020. Mobile applications offer several benefits, such as cost-effectiveness, convenience, faster transactions, greater control, and better understanding. It gives customers a sense of control and the ability to mainly explore options that are well-suited for them, in their own time.
On the other hand, the desktop website segment is expected to register the fastest CAGR from 2021 to 2028. This platform enables customers to trade directly on the stockbroker’s website. In addition, it allows customers quick execution of orders along with the fast settlement. Thus, it is expected to increase at a steady CAGR over the forecast period.
The online brokers segment dominated the market accounting for a revenue share of more than 35% in 2020 and is estimated to register a steady CAGR from 2021 to 2028. An online broker is an intermediary between a buyer and seller of a financial instrument. An online broker mainly permits for better control over trades, performing them much faster than was possible over the phone and allowing individual traders to handle multiple positions at once. Due to all of its benefits mentioned above, it is most the preferred type of neobrokers and thus, the online brokers segment will have significant growth.
The trading platforms segment is expected to witness the highest CAGR from 2021 to 2028. The trading platforms offer various features and functions that allow real-time interaction with a trading partner. By offering capabilities tailored to each market structure, the trading platforms mainly offer a greater deal of options on how to perform trades and manage trades.
North America accounted for the maximum revenue share of more than 58% in 2020. The U.S. has one of the highest rates of implementation for stock trading, with more than 50% of the people owning stocks. The propagation of zero-commission stock trading apps has attracted a young generation into stock trading. In addition, the liquidity offers investors more choices of stocks with a greater number of sectors.
Asia Pacific is estimated to be the fastest-growing regional market from 2021 to 2028. China and India are the two major countries contributing to the market growth in this region. Nearly 13% of China’s population participates in the stock market, whereas 3% of India’s population participates in the stock market. Moreover, the number of users has increased drastically after the COVID-19 pandemic in the region.
The global market is characterized by the presence of established as well as new players. Major players operating in this market are offering advantages on services, such as charging low brokerage on trading and investing. In addition, most of the players are providing well and simply structured app to their customers. Some players offer a wide variety of inexpensive saving plans. Some of the prominent players in the global neobrokers market include:
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Report Attribute |
Details |
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Market size value in 2021 |
USD 8.60 Billion |
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Revenue forecast in 2028 |
USD 12.55 Billion |
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Growth rate |
CAGR of 5.6% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Type, platform, and region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.; Canada; U.K.; Germany; France.; China; India; Japan; Brazil; Argentina; Saudi Arabia; South Africa |
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Key companies profiled |
Bitpanda GmbH; XTB International Ltd.; Trade Republic Bank GmbH; eToro Ltd.; Robinhood Markets, Inc.; Stash Financial, LLC; Plus500; BUX B.V.; E-Trade Financial Holdings, LLC; Webull Financial LLC |
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Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global neobrokers market report on the basis of type, platform, and region:
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