High stakes: With the rise of electronic trading and discount brokering, operators have started to offer more value-added services

Over the five years to 2018, industry revenue has increased an annualized 2.5% to an estimated $158.4 billion. However, industry revenue still remains well below prerecessionary levels. Slow economic and financial market recovery, coupled with contracting securities trading volumes, caused revenue to stagnate in 2012 before slowly starting to improve. Over the five years to 2023, industry revenue is forecast to decline an annualized 0.2% to $157.1 billion. 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...purchase to read more.

Industry Statistics & Market Size
Revenue
$158bn
Annual Growth 13-18
2.5%
Forecast Growth 18-23
Profit
Employment
305,002
Businesses
55,860

Industry Threats & Opportunities

  • Operators have increased their financial services offerings and transitioned to an asset-based fee structure
  • The industry has managed to offset declines by increasingly adopting value-added services
  • As market volatility increases, retail investors will shift to safer asset classes
  • Industry Report - Industry Investment Chapter

    Capital intensity is largely dependent on the size of the operation. The industry is labor-intensive with wages accounting for 34.6% of revenue. Labor expenses include the salaries, bonuses and benefits paid to professionals and administrative staff. Other variable costs associated with operations include phone bills, mailing costs and trading expenses. Due to its very high average wage costs, this industry is considered to have a low level of capital intensity.The industry has increased its investments in technology in an attempt to improve efficiency as well as lower costs of processing and administration. One factor that has positively influenced these areas is the increased development of online services. The...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 Demand from open-end investment funds and Investor uncertainty in the Securities Brokering industry impact industry performance..

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    What's in this report

    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
  • 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
  • Demand from open-end investment funds
  • Investor uncertainty
  • S&P 500
  • Personal savings rate
  • Regulation for the Investment Management industries
  • Yield on 10-year Treasury note

  • Current Performance
  • Following the financial crisis
  • Eliminating the middle man
  • Evolving broker activities and fee structure
  • Industry operations
  • 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
  • Trading equity instruments
  • Financial planning and investment management
  • Trading debt instruments
  • Trading other securities
  • Other
  • Trading derivative contracts
  • Repurchase agreements
  • Chart: Securities Brokering Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail Investors
  • Investment Funds
  • Other
  • Institutions
  • Pension Funds
  • 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
  • Internal
  • External competition

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

  • Industry Globalization
    Bank of America Corporation, Morgan Stanley, Wells Fargo & Company,
  • Table: Bank of America Corporation - financial performance
  • Table: Morgan Stanley - financial performance
  • Table: Wells Fargo & Company - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • S&P 500 (2009-2023)

  • 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.
  • What Our Customers Say

    Why buy this report?

    The Securities Brokering industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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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