High stakes: Rising household income and corporate profit will boost industry revenue

The industry generates revenue from trading commissions as well as transaction and asset-based fees. With the rise of electronic trading and discount brokering, many industry operators have started to offer more value-added services such as investment advice for clients. A slow economic and financial market recovery, coupled with contracting securities trading volumes, caused revenue to stagnate. Over the five years to 2022, industry revenue is expected to grow. Continued merger and acquisition (M&A) activity will enable financial firms to capitalize on operational synergies, larger client bases and new financial advisory business segments...read more.

Industry Statistics & Market Size
Revenue
$145bn
Annual Growth 12-17
1.8%
Forecast Growth 17-22
Profit
Employment
312,318
Businesses
54,956
What Our Customers Say

Industry Threats & Opportunities

  • Operators increase financial services offerings to boost industry revenue
  • Technology improvements will force industry employment downward
  • Revenue generated by trading commissions will continue to decline
  • Industry Report - Industry Products Chapter

    Participants in the Securities Brokering industry engage in a range of activities such as financial planning and asset management in addition to services more traditionally associated with securities brokerage such as research, buying and selling securities and mutual fund sales. In other transactions, brokers act as the principal by meeting the client's order with their own investment products.Trading securities and other financial productsCommissions charged for executing trades has been declining since the rise of electronic trading and discount brokering. Brokers have been increasing the range of services they provide to make up for this loss in income. However, trading commissions on securities still represent the largest share of revenue at an estimated 54.6%, ...purchase to read more.

    Additional Insights for the Securities Brokering Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Securities Brokering Industry are

  • Must comply with government regulations
  • Well-developed internal processes
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as S&P 500 and Investor uncertainty in the Securities Brokering industry impact industry performance..

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    What is the Securities Brokering Industry?

    Companies in this industry act as agents that arrange transactions between securities buyers and sellers on a commission or transaction-fee basis. The Securities Brokering industry continues to converge with various other securities and banking industries due to regulatory, technological and market trends.

    Industry Products
  • Trading debt instruments
  • Trading equity instruments
  • Trading derivative contracts
  • Trading other securities
  • Repurchase agreements
  • Financial planning and investment management
  • Industry Activities
  • Securities (e.g. stocks, bonds, currencies, derivatives and options) brokerage
  • Financial advisory services
  • Mutual fund sales
  • Margin lending
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • S&P 500
  • Investor uncertainty
  • Yield on 10-year Treasury note
  • Demand from open-end investment funds
  • Personal savings rate
  • Regulation for the Investment Management industries

  • Current Performance
  • Following the financial crisis
  • Eliminating the middle man
  • Evolving broker activities and fee structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Embracing a new structure
  • Table: Securities Brokering Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Securities Brokering Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Commercial Banking
  • Savings Banks & Thrifts
  • Portfolio Management
  • Retirement & Pension Plans
  • Open-End Investment Funds

  • Key Selling Industries
  • Stock & Commodity Exchanges

  • Products & Services
  • Other
  • Trading equity instruments
  • Financial planning and investment management
  • Trading debt instruments
  • Trading derivative contracts
  • Trading other securities
  • Repurchase agreements
  • Chart: Securities Brokering Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Institutional clients with investment funds
  • Retail clients with discount or online brokerage
  • Institutional clients with pension funds
  • Other institutional clients
  • Retail clients with full-service brokerage
  • Chart: Major Market Segmentation for the Securities Brokering Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Securities Brokering

  • Basis of Competition
  • Institutional market
  • Retail market
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Securities Brokering Industry

  • Industry Globalization
    Bank of America Corporation Wells Fargo & CompanyJPMorgan Chase & Co.Morgan Stanley
  • Table: Bank of America Corporation - financial performance
  • Table: Wells Fargo & Company - financial performance
  • Table: JPMorgan Chase & Co. - financial performance
  • Table: Morgan Stanley - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Securities Brokering Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Securities Brokering Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • S&P 500 (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Alternative Trading Systems (Ats)
  • Non-exchange trading venues that are approved by the Securities and Exchange Commission and enable alternative means of accessing liquidity.
  • Defined Benefit Plan
  • Pension plan under which an employee receives a set monthly amount upon retirement, guaranteed for their life or the joint lives of the member and their spouse.
  • Defined Contribution Plan
  • Retirement savings program under which an employer promises certain contributions to a participant's account during employment, but with no guaranteed retirement benefit.
  • Electronic Communication Networks
  • An electronic system that automatically and directly matches buy and sell orders at specified prices.
  • Registered Independent Advisers
  • This registration means a person is regulated by the SEC. In general, an RIA with more than $25 million under management must register with the SEC.
  • Why buy this report?

    The Securities Brokering Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Securities Brokering:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Securities Brokering market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Securities Brokering, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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