Abstract
This IDC Financial Insights report discusses the development, across the
retail online brokerage space, of a growing niche of private
investors who are riding the storm by capitalizing on market
volatility in today' s bearish market.
According to Simona Macellari, research manager
for Financial Insight' s European Capital Markets, "After the Gold Rush,
etrading economics demonstrated that the business model of traditional retail
discount brokers, focused on execution only, was barely viable. Surviving
retail brokers moved toward a full-service model to expand asset
gathering by covering more asset types or more stages of
the investment cycle. Now the online retail brokerage industry is
changing again. From the ashes of the financial crisis, a
new breed of specialized, execution-only brokers is rising and flourishing.
They have proven to be very profitable by addressing, at
the pan European level, the niche retail segment of CFD
traders. This niche is the fastest growing and most lucrative
segment of retail trading with a five-year CAGR of more
than 12% in Western Europe."
"As active retail investors cast their
eyes over the brokerage landscape, they seek innovative ways in
which to capitalize on the volatility evident in Europe' s financial
markets. Those that are willing to embrace risk to drive
their own investment mandates are increasingly looking to trade more
exotic financial instruments via online platforms. Without doubt, this growing
level of demand is a reflection of the current lack
of confidence in the professional investment management industry. Self-service investment
is now the priority for the sophisticated retail investor. With
this in mind, specialist execution brokers offer a compelling mix
of innovative financial products and technological excellence," said Matthew Clay,
senior research analyst, EMEA Financial Insights.
Table of Contents
- Financial Insights Opinion
- In This Report
- Situation Overview
- Recent Trends
- The Advent of the Specialist Players
- Geographies
- Challenges to Overcome
- White Labeling
- The Challenge for the Banks
- Technology Imperatives
- Future Outlook
- Essential Guidance
- Actions for Financial Institutions
- Actions for Vendors
- Learn More
- Related Research
- Definitions
- Synopsis
- Table: Western European Retail eTraders Forecast, 2009–2013
- Figure: Western European CFD Traders Forecast, 2009–2013
- Figure: CFD Traders: Top 6 Countries Versus The Rest of Western Europe Forecast, 2009–2013
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