Security Brokerage Market in the US – Size, Forecast, and Competitive Landscape: Explore Plutus Financial Group’s US Potential

Market Outlook: Security Brokerage Market in the US 2025-2029

The security brokerage market in the US is a dynamic industry driven by the increasing demand for investment services, with firms offering a wide range of solutions including online trading platforms, wealth management, and advisory services to individual and institutional investors. The market is expected to grow by USD 30-40 billion at a CAGR of 3%-5% between 2025 and 2029. Exact values for this market can be accessed upon purchasing the report. Key companies in this market include:

• Charles Schwab
• Fidelity Investments
• Vanguard Group
• Morgan Stanley
• Others

IPO Company Overview: Plutus Financial Group in the US security brokerage market

Plutus Financial Group recently launched its IPO on the Nasdaq Capital Market in February 2025 under the ticker symbol PLUT, creating a new opportunity for investors. Plutus Financial Group is a financial advisory firm specializing in personalized wealth management and investment strategies. With a focus on long-term financial growth and security, Plutus Financial Group utilizes advanced investment strategies and cutting-edge technology to help clients achieve their financial goals.

Market Segmentation: How is the US security brokerage market segmented?

Client Type

• Retail Investors
• Institutional Investors
• High-Net-Worth Individuals (HNWIs)
• Corporate Clients

Retail investors represent the leading client type, driven by the increasing popularity of online trading platforms, robo-advisors, and self-directed investment options that provide easy access to financial markets for individual investors at lower costs.

Service Type

• Full-Service Brokerage
• Discount Brokerage
• Robo-Advisory Services
• Online/Direct Brokerage
• Margin and Options Trading

Online/direct brokerage has become the dominant service type, fueled by the rise of digital platforms that offer low fees, easy-to-use interfaces, and commission-free trades, catering to a wide range of investors seeking convenience and affordability.

Investment Opportunities: Why explore the US security brokerage market with Technavio?

Recent developments in the security brokerage market in the US have been largely driven by a shift toward digital platforms and commission-free trading. The rise of online brokerage firms has made trading more accessible, especially for retail investors, by eliminating traditional commission fees and offering user-friendly mobile interfaces. Additionally, the growing trend of robo-advisors has disrupted the market, with firms like Betterment and Wealthfront gaining popularity by offering automated, low-cost investment management services. The surge in retail trading activity has been particularly evident during the COVID-19 pandemic, which led to a spike in individual investors entering the market, fueling the demand for low-cost, efficient brokerage services.

Furthermore, the security brokerage market has seen greater adoption of advanced technology such as artificial intelligence (AI) and machine learning to improve trading strategies, enhance customer service, and provide better risk management. As financial technology (fintech) continues to evolve, many brokerage firms are integrating advanced data analytics and personalized advisory services into their offerings to stay competitive. Additionally, the market has witnessed a shift towards environmental, social, and governance (ESG) investing, with brokers increasingly providing platforms and tools for investors to align their portfolios with ethical and sustainable investing criteria. These developments signal a transformative period in the security brokerage market, where accessibility, affordability, and innovation are reshaping the way people invest.

Market Dynamics: What factors are influencing the security brokerage market in the US?

Drivers:

The security brokerage market in the US is driven by the increasing digitalization of financial services, making trading more accessible to a broader audience. The rise of commission-free trading, particularly among retail investors, has significantly reduced the cost of investing, leading to higher participation in the market. Additionally, the growth of mobile trading platforms and robo-advisory services has allowed investors to manage their portfolios with greater ease and efficiency. The increasing interest in long-term investing, especially in retirement accounts, and the availability of diverse investment products also drive market growth as individuals seek more control over their financial futures.

Trends:

Key trends in the US security brokerage market include the shift towards commission-free trading and the growing popularity of online and mobile trading platforms that offer easy access to various financial instruments. Another significant trend is the rise of robo-advisory services, which use automation and algorithms to manage investments, making financial services more affordable and accessible to retail investors. Furthermore, the shift toward sustainable investing, including ESG (Environmental, Social, and Governance)-focused portfolios, is gaining traction as investors seek to align their financial goals with social responsibility. Increased retail investor participation, particularly driven by social media and online communities, has also reshaped how trading activity is conducted.

Opportunities:

The US security brokerage market presents ample opportunities, particularly in the growing millennial and Gen Z investor demographic, which increasingly seeks flexible, low-cost investment solutions through mobile platforms. Robo-advisory services present an opportunity for brokers to tap into the underserved mass-market segment looking for affordable, hands-off portfolio management. There is also the opportunity to capitalize on the rising demand for ESG investing, as investors increasingly want to make a positive social impact while achieving financial returns. Moreover, integrating AI and machine learning into trading strategies and customer service can improve operational efficiency and attract more clients by offering personalized investment insights and automated services.

Challenges:

Despite its growth, the security brokerage market in the US faces several challenges, including the regulatory scrutiny on commission-free trading models, particularly regarding payment for order flow practices, which could result in regulatory changes that may impact profitability. Additionally, with the rise of retail investor participation, there are concerns about market volatility driven by inexperienced traders and speculative trading. Cybersecurity also remains a significant challenge, as increasing digitalization exposes brokerage firms to risks of data breaches and financial fraud. Finally, the commoditization of trading services has intensified competition, leading to reduced margins for firms, especially those relying on traditional brokerage models.

Investment Questions: Topics to consider when investing in the security brokerage market in the US

What is the company's market position and competitive advantage?
Evaluate whether the brokerage firm has a strong brand, robust customer base, and a unique value proposition that sets it apart from competitors, such as low fees, superior technology, or niche offerings.

How is the firm adapting to technological changes?
With rapid advancements in fintech, it's crucial to assess how well the firm is integrating AI, machine learning, and mobile platforms into its services. Is the company offering innovative solutions like robo-advisors or commission-free trading to stay competitive?

What are the regulatory risks involved?
The brokerage market is heavily regulated. Investigate the firm's compliance with US Securities and Exchange Commission (SEC) rules and whether changes in regulations—such as payment for order flow scrutiny—could impact its business model.

How diversified is the firm's client base?
Determine if the brokerage firm relies too heavily on one type of customer (e.g., retail investors, institutional investors) or if it has a diversified client portfolio that can withstand market fluctuations.

What are the growth prospects in the market?
Consider the firm’s potential to capture growth in emerging sectors like sustainable investing (ESG), robo-advisory services, or cryptocurrency trading. Are they expanding their offerings to meet the evolving needs of investors?

For a detailed analysis of the security brokerage market in the US, buy the full report

Technavio Report Insights: How Can Technavio Reports Help Investors Make Better Business Decisions?

Key Features of a Technavio Report: 

• Comprehensive Market Analysis: Provides a detailed overview of the security brokerage market in the US, including market size, growth rate, segmentation, and regional analysis. 

• In-Depth Competitive Landscape: Offers insights into the competitive dynamics, market share and positioning, and product offerings of key players. 

• Future Market Trends: Identifies emerging trends and opportunities that can shape the future of the market. 

• Detailed Segmentation: Breaks down the market into various segments to help investors identify specific niches and target markets. 

• Expert Analysis: Provides expert insights and forecasts from industry analysts

FAQ

1. What is the role of robo-advisors in the brokerage market?
Robo-advisors use algorithms to provide automated, low-cost investment advice and portfolio management. They are especially attractive to beginner investors or those looking for affordable investment solutions without the need for human financial advisors. Robo-advisory services have gained popularity in the US as part of the trend toward digital finance.

2. What are the key trends shaping the security brokerage market in the US?
Key trends include commission-free trading, the rise of robo-advisory services, the growth of ESG investing, the digitalization of financial services, and the increased participation of retail investors in the stock market. The use of artificial intelligence and machine learning in trading strategies and customer service is also on the rise.

3. What are the regulatory challenges in the security brokerage market?
The US security brokerage market is heavily regulated by organizations like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Regulatory challenges include the scrutiny of payment for order flow, disclosures around fees, and the need to adapt to market manipulation concerns and emerging cryptocurrency regulations.

Table of Contents

1 Executive Summary

• 1.1 Market overview
  • Executive Summary - Chart on Market Overview
  • Executive Summary - Data Table on Market Overview
  • Executive Summary - Chart on Global Market Characteristics
  • Executive Summary - Chart on Market by Geography
  • Executive Summary - Chart on Market Segmentation
  • Executive Summary - Chart on Incremental Growth
  • Executive Summary - Data Table on Incremental Growth
  • Executive Summary - Chart on Company Market Positioning

2 Technavio Analysis

• 2.1 Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

• 2.2 Criticality of inputs and factors of differentiation
  • Overview on criticality of inputs and factors of differentiation

• 2.3 Factors of disruption
  • Overview on factors of disruption

• 2.4 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

3 Market Landscape

• 3.1 Market ecosystem
  • Parent Market
  • Data Table on - Parent Market

• 3.2 Market characteristics
  • Market characteristics analysis

• 3.3 Value chain analysis
  • Value chain analysis

4 Market Sizing

• 4.1 Market definition
  • Offerings of companies included in the market definition

• 4.2 Market segment analysis
  • Market segments

• 4.3 Market size 2024

• 4.4 Market outlook: Forecast for 2024-2029
  • Chart on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Data Table on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Chart on Global Market: Year-over-year growth 2024-2029 (%)
  • Data Table on Global Market: Year-over-year growth 2024-2029 (%)

5 Historic Market Size

• 5.1 Global Market 2019 - 2023
  • Historic Market Size - Data Table on Global Market 2019 - 2023 ($ billion)

• 5.2 Segment Analysis 2019 - 2023
  • Historic Market Size – Segment Analysis 2019 - 2023 ($ billion)

• 5.4 Geography segment analysis 2019 - 2023
  • Historic Market Size - Geography Segment 2019 - 2023 ($ billion)

6 Qualitative Analysis

• 6.1 Impact of AI on the Global Market

7 Five Forces Analysis

• 7.1 Five forces summary
  • Five forces analysis - Comparison between 2024 and 2029

• 7.2 Bargaining power of buyers
  • Bargaining power of buyers - Impact of key factors 2024 and 2029

• 7.3 Bargaining power of suppliers
  • Bargaining power of suppliers - Impact of key factors in 2024 and 2029

• 7.4 Threat of new entrants
  • Threat of new entrants - Impact of key factors in 2024 and 2029

• 7.5 Threat of substitutes
  • Threat of substitutes - Impact of key factors in 2024 and 2029

• 7.6 Threat of rivalry
  • Threat of rivalry - Impact of key factors in 2024 and 2029

• 7.7 Market condition
  • Chart on market condition - Five forces 2024 and 2029

8 Market Segmentation

• 8.1 Market segments
  • Chart on Segmentation - Market share 2024-2029 (%)
  • Data Table on Segmentation - Market share 2024-2029 (%)

• 8.2 Segment Comparison
  • Chart on Comparison
  • Data Table on Comparison

• 8.3 Segment Market Opportunity
  • Market opportunity ($ billion)
  • Data Table on Market Opportunity ($ billion)

9 Customer Landscape

• 9.1 Customer landscape overview
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

10 Geographic Landscape

• 10.1 Geographic segmentation
  • Chart on market share by geography 2024-2029 (%)
  • Data Table on market share by geography 2024-2029 (%)

• 10.2 Geographic comparison
  • Chart on Geographic comparison
  • Data Table on Geographic comparison

• 10.3 Market opportunity by geography
  • Market opportunity by geography ($ billion)
  • Data Tables on Market opportunity by geography ($ billion)

11 Drivers, Challenges, and Opportunity/Restraints

• 11.1 Market drivers

• 11.2 Market challenges

• 11.3 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

• 11.4 Market opportunities/restraints

12 Competitive Landscape

• 12.1 Overview

• 12.2 Competitive Landscape
  • Overview on criticality of inputs and factors of differentiation

• 12.3 Landscape disruption
  • Overview on factors of disruption

• 12.4 Industry risks
  • Impact of key risks on business

13 Competitive Analysis

• 13.1 Companies profiled
  • Companies covered

• 13.2 Company ranking index
  • Company ranking index

• 13.3 Market positioning of companies
  • Matrix on companies position and classification

14 Appendix

• 14.1 Scope of the report

• 14.2 Inclusions and exclusions checklist
  • Inclusions checklist
  • Exclusions checklist

• 14.3 Currency conversion rates for US$
  • Currency conversion rates for US$

• 14.4 Research methodology
  • Research methodology

• 14.5 Data procurement
  • Information sources

• 14.6 Data validation
  • Data validation

• 14.7 Validation techniques employed for market sizing
  • Validation techniques employed for market sizing

• 14.8 Data synthesis
  • Data synthesis

• 14.9 360 degree market analysis
  • 360 degree market analysis

• 14.10 List of abbreviations
  • List of abbreviations