Neobrokers - Canada | Statista Market Forecast

Revenue in the Neobrokers market is projected to reach US$130.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 1.00% resulting in a projected total amount of US$136.10m by 2028.
The average revenue per user in the Neobrokers market amounts to US$43.06 in 2024.
From a global comparison perspective it is shown that the highest revenue is reached United States (US$3.07bn in 2024).
Assets under management in the Neobrokers market are projected to reach US$13.79bn in 2024.
Assets under management are expected to show an annual growth rate (CAGR 2024-2028) of 1.00% resulting in a projected total amount of US$14.35bn by 2028.
The average assets under management per user in the Neobrokers market is expected to amount to US$4.54k in 2024.
From a global comparison perspective it is shown that the highest assets under management is reached United States (US$323.10bn in 2024).
In the Neobrokers market, the number of users is expected to amount to 3.11m users by 2028.
User penetration will be 7.79% in 2024 and is expected to hit 7.73% by 2028.

Definition:

Neobrokers are a type of brokerage firm that operates solely in the digital space. They typically position themselves as online brokers, trading platforms, social trading platforms, or retail investment platforms. Neobrokers offer online trading and investment services, often at a lower cost than traditional brick-and-mortar brokerage firms. They typically provide access to a wide range of financial products, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs), and may also offer financial planning and investment advice.

Neobrokers require digital onboarding of its clients and do not have physical branches to provide consultations and services to their customers. Given the nature of online trading activities, neobroker services can be accessed either via a mobile app or via a desktop website.

Additional Information:

Key players in this market are Robinhood, SoFi and eToro.Within our market scope, we focus only on those neobrokers that provide either exclusively B2C or both B2B and B2C services; those that solely work with B2B clients are excluded from the market

Online broker
Trading platforms
Social trading platforms
Retail investment platforms

Companies that solely provide robo-advisory services
Online brokers that only work with B2B clients
Cryptocurrency

Neobrokers are disrupting the traditional brokerage industry by offering low-cost and user-friendly digital platforms for buying and selling securities. One current trend in the neobroker market is the rise of commission-free trading, which has become a popular feature among investors seeking to save money on fees. Another trend is the emergence of social trading platforms that allow investors to follow and copy the trades of other successful traders. Additionally, many neobrokers are expanding their offerings beyond stocks and ETFs to include fractional shares, and robo-advisory services.
The growth in the neobroker market is being driven by several factors. One key factor is the increasing popularity of digital investing among younger generations who are comfortable with technology and prefer self-directed investing. Another factor is the lower costs and fees associated with neobrokers compared to traditional brokerage firms. Additionally, the COVID-19 pandemic has accelerated the shift towards online investing, as many people have been forced to work from home and have more time to research and manage their investments.
The neobroker market is expected to continue its growth trajectory in the coming years. Increasing demand for low-cost investment services, rising internet penetration, and growing interest in stock trading among millennials are key drivers of market growth.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Digital market, in a PDF format.