×
Request Free Sample ×

Kindly complete the form below to receive a free sample of this Report

* Please use a valid business email

Leading companies partner with us for data-driven Insights

clients tt-cursor
Hero Background

Discount Brokerage Market

ID: MRFR/BS/40864-HCR
200 Pages
Garvit Vyas
October 2025

Discount Brokerage Market Research Report By Service Type (Full-Service Brokerage, Discount Brokerage, Robo-Advisory Services, Self-Directed Trading), By Investor Type (Retail Investors, Institutional Investors, High-Net-Worth Individuals), By Account Type (Individual Accounts, Joint Accounts, Retirement Accounts, Corporate Accounts), By Platform Type (Mobile Trading Platforms, Web-Based Trading Platforms, Desktop Trading Platforms) & By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2035

Share:
Download PDF ×

We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

Discount Brokerage Market Infographic
Purchase Options

Discount Brokerage Market Summary

As per MRFR analysis, the Discount Brokerage Market Size was estimated at 8.877 USD Billion in 2024. The Discount Brokerage industry is projected to grow from 9.282 USD Billion in 2025 to 14.5 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 4.56 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Discount Brokerage Market is experiencing a transformative shift driven by technological advancements and changing investor preferences.

  • Technological advancements are reshaping the discount brokerage landscape, enhancing trading platforms and user interfaces.
  • There is a notable shift towards self-directed investing, particularly among retail investors in North America, who seek greater control over their portfolios.
  • Customer experience is increasingly prioritized, with firms focusing on personalized services to attract and retain clients.
  • Technological integration and the rise of mobile trading are major drivers, particularly benefiting discount brokerage services and high-net-worth individuals in the Asia-Pacific region.

Market Size & Forecast

2024 Market Size 8.877 (USD Billion)
2035 Market Size 14.5 (USD Billion)
CAGR (2025 - 2035) 4.56%

Major Players

Charles Schwab (US), Fidelity Investments (US), TD Ameritrade (US), E*TRADE (US), Robinhood (US), Interactive Brokers (US), Ally Invest (US), Merrill Edge (US), Vanguard (US)

Discount Brokerage Market Trends

The Discount Brokerage Market is currently experiencing a transformative phase, characterized by the increasing adoption of technology and digital platforms. Investors are gravitating towards online trading solutions that offer lower fees and enhanced accessibility. This shift is driven by a growing preference for self-directed investment strategies, where individuals seek to manage their portfolios without the need for traditional financial advisors. As a result, discount brokerages are expanding their service offerings to include advanced trading tools, educational resources, and personalized customer support, aiming to attract a broader clientele. Moreover, the competitive landscape within the Discount Brokerage Market is intensifying, as new entrants emerge alongside established players. This dynamic environment fosters innovation, compelling firms to differentiate themselves through unique value propositions. The integration of artificial intelligence and machine learning into trading platforms is becoming more prevalent, potentially enhancing user experience and decision-making processes. As the market evolves, it appears that customer-centric approaches will play a crucial role in shaping the future of discount brokerage services, ensuring that they remain relevant in an ever-changing financial landscape.

Technological Advancements

The Discount Brokerage Market is witnessing rapid technological advancements that enhance trading efficiency. Innovations such as mobile trading applications and algorithmic trading systems are becoming commonplace, allowing investors to execute trades swiftly and effectively. These developments not only streamline the trading process but also empower users with real-time data and analytics.

Shift Towards Self-Directed Investing

There is a notable shift towards self-directed investing among retail investors. Many individuals are opting to take control of their financial futures, seeking platforms that provide the necessary tools and resources for independent trading. This trend indicates a growing confidence in personal investment strategies, as users increasingly rely on discount brokerages for support.

Increased Focus on Customer Experience

The Discount Brokerage Market is placing greater emphasis on customer experience as a differentiating factor. Firms are investing in user-friendly interfaces, responsive customer service, and educational content to enhance user engagement. This focus on customer satisfaction is likely to influence client retention and attract new investors.

Discount Brokerage Market Drivers

Regulatory Changes

Regulatory changes are playing a pivotal role in shaping the Discount Brokerage Market. Recent reforms aimed at increasing transparency and reducing trading fees have made it easier for new entrants to compete. For instance, the introduction of zero-commission trading models has disrupted traditional brokerage firms, compelling them to adapt or risk losing market share. As of October 2025, the number of discount brokers has surged, with many offering innovative services to attract clients. This regulatory environment fosters competition, which may lead to better pricing and services for consumers, thereby driving growth in the Discount Brokerage Market.

Global Economic Trends

The Discount Brokerage Industry. Factors such as low interest rates and increasing stock market participation are encouraging more individuals to invest. As of 2025, the number of retail investors has reached unprecedented levels, with many seeking low-cost trading options to maximize their returns. Additionally, economic recovery in various regions is fostering a favorable environment for investment, further driving demand for discount brokerage services. This trend suggests that the Discount Brokerage Market may continue to thrive as more individuals recognize the potential benefits of investing in financial markets.

Rise of Mobile Trading

The rise of mobile trading applications is significantly influencing the Discount Brokerage Market. With the proliferation of smartphones, investors are increasingly opting for mobile platforms that offer real-time trading capabilities and user-friendly interfaces. As of 2025, it is reported that nearly 75% of retail investors utilize mobile apps for trading, reflecting a shift in consumer behavior towards convenience and accessibility. This trend not only enhances user engagement but also expands the market reach of discount brokers, allowing them to cater to a broader audience. The Discount Brokerage Market is thus likely to continue evolving in response to these mobile-centric preferences.

Technological Integration

The Discount Brokerage Market is experiencing a notable shift due to the integration of advanced technologies. Innovations such as artificial intelligence and machine learning are enhancing trading platforms, allowing for more efficient transaction processing and improved user interfaces. As of 2025, it is estimated that over 60% of trades are executed through automated systems, which significantly reduces costs for both brokers and investors. This technological evolution not only streamlines operations but also attracts a younger demographic that is more tech-savvy. Consequently, the Discount Brokerage Market is likely to see increased participation from retail investors who prefer low-cost trading options that technology facilitates.

Increased Financial Literacy

Increased financial literacy among the general population is contributing to the growth of the Discount Brokerage Market. Educational initiatives and online resources have empowered individuals to take control of their investments, leading to a surge in self-directed trading. As of October 2025, surveys indicate that over 50% of new investors feel confident in managing their portfolios independently. This trend is particularly pronounced among millennials and Gen Z, who are more inclined to engage with discount brokers that offer educational tools and resources. Consequently, the Discount Brokerage Market is poised for expansion as more individuals seek to invest without the need for traditional financial advisors.

Market Segment Insights

By Service Type: Discount Brokerage Market (Largest) vs. Robo-Advisory Services (Fastest-Growing)

The Discount Brokerage Market is characterized by a diverse range of service types vying for market share. Among these, Discount Brokerage Market stands out as the largest segment, capturing a significant portion of the overall market. Full-Service Brokerage also retains a considerable share but is overshadowed by the aggressively expanding Discount Brokerage Market segment, which appeals to cost-conscious investors. Meanwhile, Robo-Advisory Services have emerged as a strong competitor, attracting tech-savvy clients looking for automated investment solutions, although they hold a smaller portion compared to the larger incumbents.

Discount Brokerage Market (Dominant) vs. Robo-Advisory Services (Emerging)

Discount Brokerage Market has become the dominant force in the market, primarily due to its low-cost structure and accessibility to a wide range of investors. This segment has revolutionized trading by removing traditional barriers, enabling even novice traders to participate actively in the financial markets. In contrast, Robo-Advisory Services represent an emerging segment, offering algorithm-driven financial planning with minimal human intervention. This service type caters predominantly to younger investors who prefer a hands-off approach to investing while benefiting from sophisticated portfolio management. The convenience offered by these platforms and their ability to provide personalized investment solutions at a fraction of the cost of traditional services are driving their growth.

By Investor Type: Retail Investors (Largest) vs. High-Net-Worth Individuals (Fastest-Growing)

In the Discount Brokerage Market, Retail Investors hold the largest market share, driven by their increasing accessibility to online trading platforms and low trading costs. This segment benefits from technological advancements, enabling individual traders to engage in stock and forex trading with ease. In contrast, Institutional Investors also maintain a significant presence; however, they are outpaced by the rapid growth of High-Net-Worth Individuals, who seek personalized investment strategies and premium services.

Retail Investors (Dominant) vs. High-Net-Worth Individuals (Emerging)

Retail Investors dominate the Discount Brokerage Market due to their sheer volume and active participation in online trading. They often utilize user-friendly platforms that offer educational resources, making trading more accessible. On the other hand, High-Net-Worth Individuals are emerging rapidly in this market as they seek tailored investment solutions and advisory services that cater to their unique financial goals. This segment is characterized by a preference for premium offerings and a higher willingness to pay for personalized service, setting it apart from the more price-sensitive Retail Investors.

By Account Type: Individual Accounts (Largest) vs. Joint Accounts (Fastest-Growing)

In the Discount Brokerage Market, Individual Accounts hold the largest share, appealing to solo investors seeking autonomy in their trading strategies, flexible investment options, and personalized services. Joint Accounts also play a significant role, attracting partners and family members who want to manage their investments collaboratively, thus fostering a sense of shared financial responsibility. Moreover, the rise of digital platforms has made it easier for both account types to thrive, enhancing accessibility and user experience.

Individual Accounts (Dominant) vs. Joint Accounts (Emerging)

Individual Accounts have established themselves as a dominant force in the Discount Brokerage Market due to their simplicity and control they afford to investors. These accounts cater to self-directed investors who prefer making autonomous decisions without third-party interference. On the other hand, Joint Accounts represent an emerging trend among young couples and family units, looking to combine their financial resources for joint investment ventures. The growth in this segment is fueled by increasing awareness of collective financial planning, as well as platforms that cater specifically to the needs of joint investors, making it an attractive option for shared financial goals.

By Platform Type: Mobile Trading Platforms (Largest) vs. Desktop Trading Platforms (Fastest-Growing)

The Discount Brokerage Market's platform type segment is primarily dominated by Mobile Trading Platforms, which have captured the largest share among users due to their convenience and accessibility. Web-Based Trading Platforms also hold a substantial market position as they allow users to trade seamlessly from any browser, accommodating a diverse range of investor preferences. Desktop Trading Platforms, while traditionally popular among professionals, are experiencing a relative decline in market share but still maintain a loyal user base that values advanced analytical tools and dedicated functionality.

Mobile Trading Platforms (Dominant) vs. Desktop Trading Platforms (Emerging)

Mobile Trading Platforms are leading the Discount Brokerage Market by catering to a tech-savvy audience that values on-the-go trading capabilities and real-time data access. Their user-friendly interfaces and features such as push notifications have made them indispensable for modern investors. Conversely, Desktop Trading Platforms are becoming an emerging option as they provide deep analytical capabilities and extensive features not commonly found in mobile platforms. They appeal to seasoned traders who prioritize a comprehensive trading experience over mobility. This shift illustrates ongoing market evolution, with demand changing based on user preferences for accessibility versus functionality.

Get more detailed insights about Discount Brokerage Market

Regional Insights

The Discount Brokerage Market is seeing a diverse regional segmentation, indicating unique patterns of growth and opportunity. In 2024, North America leads with a valuation of 3.5 USD Billion, representing a majority holding in the market, and is expected to grow significantly to 5.8 USD Billion by 2035. Europe follows as a significant player, valued at 2.2 USD Billion in 2024 and reaching 3.6 USD Billion in 2035, showing robust development driven by increasing financial literacy and technology adoption.

The APAC region, valued at 2.0 USD Billion in 2024, is also a vital market, demonstrating high growth potential, particularly due to the rising middle class and greater access to investment platforms. South America, while currently valued at 0.8 USD Billion in 2024, presents opportunities for expansion with evolving financial regulations that may encourage more individuals to enter the market. MEA, valued at 0.37 USD Billion, is smaller but shows promise, especially in regions like the UAE and Saudi Arabia where financial services are growing.

Together, these segments provide rich insights into the Discount Brokerage Market revenue, shaped by varying local dynamics and consumer behaviors impacting the overall market growth.

Discount Brokerage Market Regional Image

Key Players and Competitive Insights

The Discount Brokerage Market has seen robust growth and transformation over recent years, driven by advancements in technology, changing consumer preferences, and increasing financial literacy among individual investors. The competitive landscape is characterized by several key players that maintain a strong presence in the market, offering diverse product portfolios and innovative platforms aimed at attracting cost-conscious retail investors. Competitive insights reveal that firms are constantly evolving their service offerings, implementing user-friendly interfaces, and enhancing customer engagement strategies to stand out in this crowded field.

With the rise of fintech companies and the incorporation of artificial intelligence and machine learning, players in the global discount brokerage sector are adapting their business models to deliver optimized trading solutions. Fidelity Investments has established itself as a significant player within the Discount Brokerage Market by leveraging its comprehensive suite of investment services and a strong brand reputation built over decades. With a focus on client access to research tools and educational resources, Fidelity Investments empowers individual investors to make informed trading decisions.

The firm enables a seamless trading experience through both its desktop platform and mobile application, catering to a diverse range of investor profiles. Fidelity’s commitment to low fees and transparent pricing has positioned it favorably against competitors, while its extensive range of investment options, including stocks, ETFs, and mutual funds, further enhances its appeal. Additionally, Fidelity’s focus on customer service and technological innovation reinforces its market position, fostering loyalty and attracting new investors seeking value in their trading experience.

Robinhood Markets has differentiated itself within the Discount Brokerage Market by pioneering a commission-free trading model that aligns with the preferences of a new generation of investors. The company’s mobile-first approach has made investing more accessible to individuals who may have previously found barriers to entry in traditional brokerage firms. Robinhood Markets emphasizes user experience and gamification, transforming trading into an engaging, easy-to-use platform that enhances the user journey for novice traders. The integration of features such as fractional shares and instant deposits allows investors to trade with flexibility, catering specifically to those who prioritize cost-effective and straightforward investment solutions.

By fostering a sense of community and engaging users through social trading elements, Robinhood Markets has carved a unique niche in the market, appealing to young and tech-savvy investors looking for simple investment alternatives amid a rapidly changing financial landscape.

Key Companies in the Discount Brokerage Market market include

Industry Developments

Recent developments in the Discount Brokerage Market have been significant, reflecting a shift towards digital and mobile trading platforms. Companies such as Robinhood Markets, Fidelity Investments, and Charles Schwab are experiencing a surge in user engagement, particularly among younger investors drawn to commission-free trading options. ETRADE and TD Ameritrade have been enhancing their platforms to provide sophisticated tools for trading and investment analysis, catering to the growing demand for accessible wealth management services. Additionally, the market is witnessing a consolidation trend, with notable mergers and acquisitions that aim to strengthen market positions.

For instance, major players like Interactive Brokers and Merrill Edge are exploring synergies to expand their offerings. The market valuation of firms within this sector is on the rise, driven by increased trading volumes and heightened interest in stock market participation, especially after the pandemic-induced investment boom. Companies like Webull and SoFi Invest are also gaining traction, contributing to a competitive landscape where innovation and customer experience are paramount. With growing regulatory scrutiny and the advent of new technologies, the market is poised for further evolution and transformation.

Future Outlook

Discount Brokerage Market Future Outlook

The Discount Brokerage Market is projected to grow at a 4.56% CAGR from 2024 to 2035, driven by technological advancements, increased retail participation, and evolving investor preferences.

New opportunities lie in:

  • Integration of AI-driven trading algorithms for enhanced decision-making.
  • Expansion of mobile trading platforms to capture younger demographics.
  • Development of educational resources to empower novice investors.

By 2035, the market is expected to solidify its position as a key player in global finance.

Market Segmentation

Discount Brokerage Market Account Type Outlook

  • Individual Accounts
  • Joint Accounts
  • Retirement Accounts
  • Corporate Accounts

Discount Brokerage Market Service Type Outlook

  • Full-Service Brokerage
  • Discount Brokerage
  • Robo-Advisory Services
  • Self-Directed Trading

Discount Brokerage Market Investor Type Outlook

  • Retail Investors
  • Institutional Investors
  • High-Net-Worth Individuals

Discount Brokerage Market Platform Type Outlook

  • Mobile Trading Platforms
  • Web-Based Trading Platforms
  • Desktop Trading Platforms

Report Scope

MARKET SIZE 20248.877(USD Billion)
MARKET SIZE 20259.282(USD Billion)
MARKET SIZE 203514.5(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)4.56% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesIntegration of advanced technology enhances user experience in the Discount Brokerage Market.
Key Market DynamicsRising technological advancements and shifting consumer preferences drive competition in the Discount Brokerage Market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Leave a Comment

FAQs

What is the current valuation of the Discount Brokerage Market as of 2024?

The overall market valuation was 8.877 USD Billion in 2024.

What is the projected market size for the Discount Brokerage Market in 2035?

The projected valuation for the Discount Brokerage Market is 14.5 USD Billion in 2035.

What is the expected CAGR for the Discount Brokerage Market from 2025 to 2035?

The expected CAGR for the Discount Brokerage Market during the forecast period 2025 - 2035 is 4.56%.

Which companies are considered key players in the Discount Brokerage Market?

Key players in the market include Charles Schwab, Fidelity Investments, TD Ameritrade, E*TRADE, Robinhood, Interactive Brokers, Ally Invest, Merrill Edge, and Vanguard.

How does the Discount Brokerage segment compare to Full-Service Brokerage in terms of market size?

In 2024, the Discount Brokerage segment was valued at 3.0 USD Billion, whereas Full-Service Brokerage was valued at 2.5 USD Billion.

What are the projected values for Retail Investors in the Discount Brokerage Market by 2035?

The projected value for Retail Investors in the Discount Brokerage Market is expected to reach 5.5 USD Billion by 2035.

What is the market size for Mobile Trading Platforms in 2024?

The market size for Mobile Trading Platforms was 2.5 USD Billion in 2024.

What is the expected growth for Self-Directed Trading services from 2024 to 2035?

Self-Directed Trading services are projected to grow from 1.877 USD Billion in 2024 to 3.0 USD Billion by 2035.

How do the valuations of Individual Accounts compare to Joint Accounts in the Discount Brokerage Market?

In 2024, Individual Accounts were valued at 3.5 USD Billion, while Joint Accounts were valued at 1.5 USD Billion.

What is the projected market size for Retirement Accounts in 2035?

The projected market size for Retirement Accounts in the Discount Brokerage Market is expected to reach 4.0 USD Billion by 2035.

Download Free Sample

Kindly complete the form below to receive a free sample of this Report

Compare Licence

×
Features License Type
Single User Multiuser License Enterprise User
Price $4,950 $5,950 $7,250
Maximum User Access Limit 1 User Upto 10 Users Unrestricted Access Throughout the Organization
Free Customization
Direct Access to Analyst
Deliverable Format
Platform Access
Discount on Next Purchase 10% 15% 15%
Printable Versions