Neobrokers - Worldwide
Worldwide- Assets under Management in the Neobrokers market are projected to reach US$****tn in ****.
- Assets under Management are expected to show an annual growth rate (CAGR *********) of ****%, resulting in a market volume of US$****tn by ****.
Neobrokers are financial entities that operate solely in the digital space. They typically position themselves as online brokers, trading platforms, social trading platforms, or retail investment platforms. The evolution of neobrokers began around 2005, when the first firms providing such services were founded. These companies do not belong to other more conventional financial enterprises; however, they might partner with banks to enable more efficient and secure deposits and transfers.
Neobrokers require digital onboarding of its clients and do not have physical branches to provide consultations and services to their customers. Nevertheless, it is not mandatory for their potential clients to have a smartphone to open an account. Neobrokers can charge fees for theirs services, but some provide it for free. Given the nature of online trading activities, neobroker services can be accessed either via a mobile app or via a desktop website.
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. Companies that only provide robo-advisory services and/or only facilitate the trading of cryptocurrencies are also excluded from the scope of this market. Cryptocurrencies were excluded from the scope of this market as well.
- 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
Assets Under Management (AUM)
Revenue
Users
Analyst Opinion
The growth in the digital investment market, particularly in robo-advisors and neobrokers, can be attributed to several factors. One of the primary drivers is the increasing demand for low-cost, convenient, and personalized investment services. Robo-advisors and neobrokers offer investors a more efficient and accessible way to manage their investments, without the high fees associated with traditional financial advisors or brokers. Additionally, advancements in technology, such as artificial intelligence and machine learning, have made it possible for these platforms to provide more accurate and customized investment advice to clients.
The digital investment market is expected to continue its growth trajectory in the coming years. Factors contributing to this growth include the increasing adoption of digital platforms, the rise of new investment opportunities, and the continued development of technologies such as AI and blockchain. Additionally, the growing demand for sustainable and socially responsible investing is expected to fuel further growth in this market.
Methodology
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.Finance
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