Trading up: Higher demand from downstream companies will continue to drive industry growth

The e-Trading Software Developers industry, defined as companies that operate online securities trading websites and other software programs for the securities market, has grown slightly over the five years to 2017. While major players, including Charles Schwab, Fidelity and Interactive Brokers, recorded robust growth in the period, as investors increased their use of online trading platforms, the industry was pulled back by smaller companies and startups that still make up much of the industry. However, profit margins remained strong and comparable to other software industries. Over the five years to 2022, the industry is expected to experience stronger revenue growth. Industry growth is closely tied to the continued increase in the percentage of services conducted online...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 12-17
0.4%
Forecast Growth 17-22
Profit
Employment
24,240
Businesses
496
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Industry Threats & Opportunities

  • Industry growth is closely tied to the continued rise in the percentage of services conducted online
  • The industry experiences strong external competition from in-house IT departments
  • Downstream demand from financial institutions will grow and improve profitability
  • Industry Report - Industry Locations Chapter

    The e-Trading Software Developers industry, in line with the software sector as a whole, tends to cluster in geographic areas with a high concentration of other technology firms and prominent universities. Since the quality of a software product is only as good as the programmers who create it, companies place a premium on maintaining close proximity to highly skilled college graduates.The West region's share of industry establishments (29.0%) indicates the prominence of California's Silicon Valley region, which is home to a multitude of technology start-ups and software development companies. In fact, California accounts for 20.0% of industry establishments. Cal...purchase to read more.

    Additional Insights for the e-Trading Software Developers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the e-Trading Software Developers Industry are

  • Undertaking technical research and development
  • Access to highly skilled workforce
  • Close monitoring of competition
  • IBISWorld analysts also discuss how external factors such as Percentage of services conducted online and Private investment in computers and software in the e-Trading Software Developers industry impact industry performance..

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    What is the e-Trading Software Developers Industry?

    This industry includes operators that primarily develop independent, third-party software, which enables institutional and retail investors to access, execute and monitor positions in securities markets. It excludes trading platforms developed by exchanges and alternative trading systems. Trading platforms developed internally by institutional investors and financial intermediaries, such as banks and securities broker-dealers, are also excluded from this industry.

    Industry Products
  • Trading platforms
  • Technical analysis software
  • Trading signal generator software
  • Automated online trading software
  • Industry Activities
  • Develop electronic trading software
  • Develop order management system (OMS) platforms
  • Develop execution management system (EMS) platforms
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Percentage of services conducted online
  • Private investment in computers and software
  • Investor uncertainty
  • Demand from portfolio management

  • Current Performance
  • Changes in consumer behavior
  • New entrants seek to disrupt
  • Changes in downstream financial services sector
  • Changing technology
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing investor demands
  • Industry landscape
  • Table: e-Trading Software Developers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - e-Trading Software Developers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Investment Banking & Securities Dealing
  • Securities Brokering
  • Commodity Dealing and Brokerage
  • Private Equity, Hedge Funds & Investment Vehicles

  • Key Selling Industries
  • Commercial Leasing
  • Computer Stores
  • Professional Employer Organizations

  • Products & Services
  • Trading platforms
  • Automated online trading software
  • Trading signal generator software
  • Technical analysis software
  • Chart: e-Trading Software Developers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Online stock brokerages
  • Institutional investors
  • Other
  • Chart: Major Market Segmentation for the e-Trading Software Developers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • R&D and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs e-Trading Software Developers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the e-Trading Software Developers Industry

  • Industry Globalization
    Charles Schwab CorporationTD Ameritrade Holding CorporationFidelity National Information Services, Inc.
  • Table: Charles Schwab Corporation - financial performance
  • Table: TD Ameritrade Holding Corporation - financial performance
  • Table: Fidelity National Information Services, Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the e-Trading Software Developers 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 e-Trading Software Developers Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Private investment in computers and software (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Execution Management System (Ems)
  • This front-office trading platform traditionally let investors trade execute and mange securities orders across multiple trading venues. Its functionality has evolved and converged with OMS systems.
  • Hedge Fund
  • An aggressively managed portfolio of investments that uses advanced investment strategies to generate high returns. Hedge funds have a limited number of investors and require high initial investment.
  • Interoperability
  • The ability for trading systems to exchange and use information with other trading systems with differing technologies and ages as part of a larger financial market system.
  • Order Management System (Oms)
  • This back-office trading platform traditionally let investors keep track of and document their investment activities. Its functionality has evolved and converged with EMS systems.
  • Why buy this report?

    IBISWorld’s Industry Market Report on e-Trading Software Developers 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.

    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 e-Trading Software Developers:
    • 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 e-Trading Software Developers 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 e-Trading Software Developers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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