Industry Statistics and Trends
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 4.2 % over the past five years, to reach an estimated $188.2bn in 2023.
Trends and Insights
The monetary response to the COVID-19 pandemic
- At the onset of the pandemic in early 2020, financial markets went into turmoil. Both the equities and bond markets reacted negatively to the spread of the virus. On one hand, investors sold their equities, causing the S&P 500 to plummet. On the other hand, the entire world was facing a liquidity crisis, as the demand for the dollar increased exuberantly.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rising interest rates fuel investor uncertainty
- The Federal Reserve is expected to continue raising interest rates until it controls inflation. There isn't a clear or concise timeline for how long the rate hikes will continue or how high interest rates will be. The overall uncertainty is bad for investor confidence.
Biggest companies in the Securities Brokering in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Charles Schwab Corp | 23,245.0 | 11,926.0 | 51.3 | |
Bank Of America Corporation | 15,593.8 | 3,089.4 | 19.8 | |
Wells Fargo & Company | 13,595.6 | 2,440.2 | 17.9 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Brokering and dealing for debt instruments, Brokering and dealing for equities and Brokering and dealing for derivative contracts. Brokering and dealing for debt instruments is the largest segment of the Securities Brokering in the US.
Trends and Insights
Brokering for debt instruments is the largest product segment
- This segment deals with the commissions and transaction fees charged for the buying and selling of debt instruments.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Securities (e.g. stocks, bonds, currencies, derivatives and options) brokerageMutual fund salesMargin lendingCompanies
Charles Schwab CorpBank Of America CorporationWells Fargo & CompanyPurchase this report to view all 6 major companies in this industry.
Related Terms
ALTERNATIVE TRADING SYSTEMS (ATS)DEFINED BENEFIT PLANDEFINED CONTRIBUTION PLANELECTRONIC COMMUNICATION NETWORKSREGISTERED INDEPENDENT ADVISERS (RIA)Industry Code
NAICS 52312 - Securities Brokering in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Online brokerage firms, offering lower fees, became more popular. Price wars pushed brokers to offer zero commission fees.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Brokering for equities became more popular. Zero fees made it more profitable for retail workers to trade stocks.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Brokerages are in proximity to large population regions. The size of the population affects the size of the retail market.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Zero commission fees on trading pushes companies to create better user experiences. The securities broker with the prettiest, intuitive and helpful user interface wins.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies adapted to higher interest rates and less liquidity. After nearly 15 years of quantities easing, the Federal Reserve is reducing its balance sheet to help con...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Charles Schwab Corp's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Bank Of America Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Wells Fargo & Company's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Charles Schwab Corp, and factors influencing its performance in the industry
- Description and key data for Bank Of America Corporation, and factors influencing its performance in the industry
- Description and key data for Wells Fargo & Company, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulation is still heavily influenced by both the Great Depression and Great Recession. The government wants to ensure economic crises don’t arise again.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Zero commission trading fees are changing industry profit. Brokers are changing how they increase profit.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Securities Brokering in the US industry in United States in 2024?
The market size of the Securities Brokering in the US industry in United States is $188.2bn in 2024.
How many businesses are there in the Securities Brokering in the US industry in 2023?
There are 20,652 businesses in the Securities Brokering in the US industry in United States, which has declined at a CAGR of 1.9 % between 2018 and 2023.
Has the Securities Brokering in the US industry in United States grown or declined over the past 5 years?
The market size of the Securities Brokering in the US industry in United States has been growing at a CAGR of 4.2 % between 2018 and 2023.
What is the forecast growth of the Securities Brokering in the US industry in United States over the next 5 years?
Over the next five years, the Securities Brokering in the US industry in United States is expected to grow.
What are the biggest companies in the Securities Brokering in the US market in United States?
The biggest companies operating in the Securities Brokering market in United States are Charles Schwab Corp, Bank Of America Corporation and Wells Fargo & Company
What does the Securities Brokering in the US in United States include?
Securities (e.g. stocks, bonds, currencies, derivatives and options) brokerage and Mutual fund sales are part of the Securities Brokering in the US industry.
Which companies have the highest market share in the Securities Brokering in the US in United States?
The company holding the most market share in United States is Charles Schwab Corp.
How competitive is the Securities Brokering in the US industry in United States?
The level of competition is high and increasing in the Securities Brokering in the US industry in United States.
Related Industries
Widen your competitive advantage with related industries
Competitors
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Complementors
View all industries in United States
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
