Paying dividends: Service changes in response to heightened competition will cause revenue growth

IBISWorld’s Industry Market Report on Securities Brokering is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.


Industry Threats & Opportunities

  • Rising household income and increasing corporate profit have bolstered trading volumes
  • Many new ATS platforms have entered the market to compete with traditional exchanges
  • Over the next five years, a number of long-term trends will support steady growth in financial market activity and trading volume

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    Industry Analysis & Industry Trends

    Over the past five years, industry revenue has trended upward. However, industry revenue still remains well below prerecessionary levels. A slow economic and financial market recovery, coupled with contracting securities trading volumes, caused revenue to decline in 2012 before slowly starting to improve. Over the five years to 2021, industry revenue is forecast to grow. Recent merger and acquisition (M&A) activity will enable financial firms to capitalize on operational synergies, larger client bases and new financial advisory business segments...

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    Industry Report - Starting a New Business Chapter

    Entities that wish to start up as securities brokerages face significant marketing costs to gain market acceptance. Furthermore, startups will require upfront funds to establish effective distribution channels. Although technology has lowered the cost of trading platforms and products and services distribution networks, enablingindependent advisers to enter the industry, significant investment in the technology required to develop and run a web-based platform for clients is still considerable. Further investments in computer-based settlement systems are also required to maintain and grow market share. Newly formed entities in the industry face additional challenges in attracting and retaining qualified and experienced staff. The..

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    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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    Industry Products

    What is the Securities Brokering Industry?

    Companies in this industry execute securities buyers’ orders by acting as agents that arrange transactions between 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. However, this report excludes investment banking, securities dealing and commercial banking activities.

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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 other securities
  • Trading derivative contracts
  • 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
    Competitive Landscape
    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
    Major Companies
    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

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Securities Brokering Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • S&P 500 (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Alternative Trading Systems (Ats)
  • Non-exchange trading venues that are approved by the Securities and Exchange Commission and allow 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.
  • Master Trust
  • Pool of individual investors' money used to obtain wholesale prices that are unavailable for regular investors.
  • Registered Independent Advisors
  • 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?

    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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