Neobroker Market Size to Reach $12.5 Billion by 2028 (CAGR 5.6%)
As key highlights, the Million Insights report stated that Asia-Pacific is estimated to be the fastest growing regional market from 2021 to 2028 as the number of neobrokers users will increase significantly in the post-pandemic period .
A report by Million Insights estimated that the global neobrokers market size will reach USD 12.55 billion by 2028, growing at a CAGR of 5.6% from 2021 to 2028.
Neobrokers are growing in popularity because their user-friendly structure attracts retail clients looking to participate in the stock market and other asset classes with only a small amount of money.
The rise of fractional shares, zero commission and social trading, and mobile apps, has given rise to the “neobroker”, but there are hidden dangers and risks in big deals, the report points out.
As key highlights, the Million Insights report stated that Asia-Pacific is estimated to be the fastest growing regional market from 2021 to 2028 as the number of neobrokers users will increase significantly in the post-pandemic period .
The trading platform segment is expected to register the highest CAGR from 2021 to 2028, the research firm said, adding that several aspects have contributed to the development of trading platform users, such as stock market volatility, more free time during closings and growth in commission-free trading demand.
The desktop website segment – most convenient for analyzing price action and fast order execution – will also see growth but will come behind the “trading platform” segment in terms of CAGR during this period.
The United States has one of the highest implementation rates for stock trading, with more than 50% of people owning stocks, according to the report.
Major players in the neobroker market are Bitpanda GmbH, XTB International Ltd., Trade Republic Bank GmbH, eToro Ltd., Robinhood Markets, Inc., Stash Financial, LLC, Plus500, BUX, E-Trade Financial Holdings, LLC, and Webull Financial . LLC.
A neo-broker not mentioned in this list is Public.com, which is trying to dethrone Robinhood. The company recently criticized Robinhood’s PFOF model and explained why its way of achieving quality execution is better for customers.
In 2021, fintech saw its community grow by more than 700%. At the same time, its workforce has tripled to ensure that the organization matures at the same pace, providing the best product experience for its users.
Dutch neo-broker BUX is also in full steam mode, having launched split investing to clients across Europe, via the investment app, BUX Zero. Thanks to this stunt, the company became the first broker in the Netherlands to offer fractional investments to retail clients.
BUX follows the trend of democratization of trading and makes investing both accessible and affordable. The broker previously launched commission-free trading, which is still something new in Europe. Fractions of shares are a novelty on the old continent and BUX has chosen to be one of the first brokers in the region to offer such functionality.