Projections indicate that the online brokerage market will reach $18.02 billion by 2028, at a compound annual growth rate (CAGR) of 10.7%.
According to Research and Markets, the anticipated growth during the forecast period can be attributed to global economic trends, supportive regulatory environments, a focus on sustainability and ESG investing, demographic changes, and growing demand for alternative investments.
This robust expansion underscores the sector’s increasing importance and dynamism on a global scale.
Major trends expected to shape this period include enhanced security measures, improved user experience, robo-advisory services, fintech innovations, and the integration of artificial intelligence (AI).
The increasing involvement of Millennial and Gen Z investors is also expected to drive the growth of the online brokerage market. In countries like Kenya, for example, trading has emerged popular among young people, offering them numerous benefits. Trading helps them develop critical skills such as analytical thinking, decision-making, and risk management.
“With younger generations beginning to engage in trading activity, the online trading market is entering an exciting new phase of expansion,” says Maria Agustina Patti, Financial Markets Strategist at Exness. “To meet the needs of more tech-savvy investors, brokers are shifting their focus to delivering cutting-edge features like AI-driven insights and enhanced user experiences to maintain momentum and build long-term trust.”
As of this year, Kenya, for example, is estimated to have around 100,000+ online and forex traders and this number is growing, according to Trade Forex Kenya. The country also has 9 non-dealing forex brokers licensed by the Capital Markets Authority of Kenya (CMA). These providers offer trading platforms tailored to local needs and are gaining traction, further fueling market growth in the region.
It is worth noting that the burgeoning interest in trading within the region indicates the increasing accessibility and attractiveness of online brokerage platforms.
To meet this growing interest, Key players in the online brokerage market are developing AI-powered trading platforms to boost trading efficiency, offer personalized investment strategies, and enhance the overall user experience.
These new features appeal to possible newcomers and work towards maintaining current users’ goodwill, thereby sustaining the ‘growth’ momentum of the online brokerage market.
As the online brokerage market continues to expand, players in the sector are doubling down on innovation to capture the growing user base. By 2028, the online brokerage market is expected to not only cross the $18 billion mark but also redefine how individuals engage with financial markets globally.
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