social trading platform Market

The global social trading platform market is expected to grow from US$ 2,229.56 million in 2021 to US$ 3,774.17 million by 2028. It is estimated to grow at a CAGR of 7.8% from 2021 to 2028.

As the global population continues to grow, so does the number of internet users. DataReportal's January 2021 article revealed that there are currently 4.7 million internet users worldwide, representing 59% of the global population. Of these users, 92.6% (4.3 million) access the internet through mobile devices, and the UAE, Denmark, and Sweden are among the countries with the highest internet penetration rates.

Prior to 2020, the Asia Pacific (APAC) region had the largest user base with over 2.5 million internet users, followed by Europe with almost 720 million users, according to an article published by Yahoo Finance. China held the largest market share worldwide, with over 854 million users, followed by the US and India with 560 million users, as per the same Yahoo Finance article.

While some Middle East & Africa countries such as Qatar, Oman, and Kuwait are still in the early stages of digitalization and have relatively low internet penetration rates, there has been a continuous increase in awareness, leading to growth in the number of internet users. The increasing number of internet users has allowed industries to transform their businesses to the digital platform, including the use of social trading as a cost-effective approach for trading. During the COVID-19 outbreak, online trading became the best-suited medium, further driving growth in the social trading platform market.

Impact of COVID-19 Pandemic on Global Social Trading Platform Market

Before the COVID-19 pandemic, social trading platforms were widely used in the digital transformation of financial institutions and banking solutions and services. In April 2019, the spending on digital transformation was $1.18 trillion, which was a 17.9% increase over 2018, according to a Business Wire article. This need for digital transformation contributed to the growth of the social trading platform market.

However, the COVID-19 pandemic in 2020 caused social stress and economic disruptions worldwide, leading to the closure of production facilities and manufacturing units and an increase in unemployment rates. These effects of the pandemic led to countries and the global economy facing a recession, and individuals found it challenging to spend on social trading platforms. As a result, the trading industry suffered a negative impact in 2020.

But in 2021 and 2022, the relaxation of lockdown measures and an increase in employment rates had a positive impact on the social trading platform market. The trend of investing in cryptocurrency also positively impacted market growth, as Bitcoin grew from around $7,000 in March 2020 to over $54,000 by June 2021, according to the Free Press Journal.

Although the increase in unemployment rates had a negative impact on the social trading platform market, the increased investment in cryptocurrency during the forecast period will contribute to the market's growth, creating further opportunities.

 

Based on platform, the social trading platform market is bifurcated into PC and mobile. In 2021, the mobile segment led the market, accounting for the largest share. Based on end user, the market is bifurcated into individual traders and professional traders. In 2021, the individual traders segment accounted for the largest market share. Based on asset class, the market is segmented into equity, commodity, derivatives, crypto, and others. In 2021, the crypto segment accounted for the largest market share.

Geographically, the social trading platform market is categorized into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). In 2021, the North American market had the highest market share.

The overall social trading platform market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the social trading platform market with respect to all the segments. It also provides the overview and forecast for the market based on all the segmentation provided with respect to five major regions-North America, Europe, Asia Pacific, Middle East & Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. Participants in this process include industry experts, such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders, specializing in the social trading platform market. rephrase

The key companies operating in the social trading platform market are eToro; A-Trade; ZuluTrade; Tornado; MetaQuotes; PrimeXBT; Pepperstone Markets Limited; Tickmill; Octa Markets Incorporated; Assetgro Fintech Pvt. Ltd (Stockgro); Public Holding, Inc.; Naga Group AG; and Snowball X.