The rise of retail investors in financial markets has significantly driven the growth of the options trading market. With the democratization of financial information and access to sophisticated trading platforms, more individual investors are entering the realm of options trading. These investors are attracted to options for their ability to leverage smaller amounts of capital to potentially generate substantial returns. The increased participation from retail investors has brought greater liquidity and trading volumes to the options market, making it more dynamic and appealing to a broader range of market participants.
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Data Bridge Market Research analyses that the North America and Europe Options Trading Platform Market is expected to reach a value of USD 2.60 billion by 2031 from 1.41 billion in 2023, growing at a CAGR of 8.1% during the forecast period 2024 to 2031. The democratization of financial information and advanced trading platforms has empowered individual investors, increasing liquidity and trading volumes. Educational resources and user-friendly tools provided by these platforms have made options trading more accessible, while social media and online communities have further fueled retail participation. This surge in retail activity has expanded the customer base, encouraged innovation, and introduced new trading products and services, making the options market more dynamic and appealing.
Key Findings of the Study
Growing Awareness and Education about Online Trading
Growing awareness and education about online trading have significantly impacted the options trading market. As more individuals gain access to financial education resources, they become better equipped to understand the complexities and potential benefits of options trading. Educational initiatives, ranging from online courses to webinars and interactive platforms, provide retail investors with the knowledge needed to make informed decisions. This increased understanding reduces the perceived risks associated with options trading, making it more approachable for a broader audience. Consequently, a more informed investor base is likely to engage actively in options trading, driving market growth. The proliferation of online trading platforms that offer extensive educational content has further bolstered this trend. These platforms often include tutorials, strategy guides, and simulation tools that allow users to practice trading in a risk-free environment. By demystifying options trading and offering practical, hands-on learning experiences, these platforms empower retail investors to develop and refine their trading strategies. As a result, more investors feel confident in participating in the options market, leading to higher trading volumes and increased market liquidity. The convenience of accessing these resources anytime and anywhere also plays a crucial role in attracting a diverse group of investors, from novices to seasoned traders.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion
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Segments Covered
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(Individual Account, IRA Account, Entity Account, and Joint Account), Options Type (Call Options and Put Options), Platform Type (Mobile App, Desktop and Web), Trading Permission Level (Level 1, Level 2, Level 3, and Level 4), Pricing Model (Free and Subscription Based), Number of Styles (American Style Option and European Style Options)
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Countries Covered
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U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, Russia, Turkey, Belgium, Netherlands, Norway, Finland, Switzerland, Denmark, Sweden, Poland and Rest of Europe
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Market Players Covered
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Ally Financial Inc (U.S.), Bank of America Corporation (U.S.), Charles Schwab & Co., Inc. (U.S.), Interactive Brokers LLC (U.S.), Robinhood (U.S.), E*TRADE from Morgan Stanley (U.S.), ETORO USA LLC.(U.S.), IG Group Holdings plc (U.K.), Saxo Capital Markets Pte Ltd (Singapore), Ava Trade Markets Ltd. (Canada), TradeStation (U.S.), tastytrade, Inc., Social Finance, LLC (U.S.), Tickmill (Africa), FMR LLC (U.S.), Webull Financial LLC (U.S.), Moomoo Financial Inc (U.S.), and Public Holdings, Inc.(U.S.) among others.
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Data Points Covered in the Report
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In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
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Segment Analysis
North America and Europe options trading platform market is categorized into six notable segments which are based on account type, option type, platform type, trading permission level, pricing model and number of styles.
- On the basis of account type, the market is segmented into individual account, IRA account, entity account and joint account
In 2024, the individual account segment is expected to dominate the North America and Europe Options Trading Platform Market
In 2024, the individual account segment is expected to dominate the market with a 45.46% share in North America and 45.37% share in Europe due to the flexibility of using long-term holdings as equity for options trading, allowing for significant positions without heavy cash investment.
- On the basis of option type, the market is segmented into call options and put options.
In 2024, the call options segment is expected to dominate the North America and Europe Options Trading Platform Market
In 2024, the call options segment is expected to dominate the market with a 54.75% share in North America and 54.79% share in Europe due to increasing participation from retail investors in financial markets.
- On the basis of platform type, the market is segmented into mobile app, desktop, and web. In 2024, the mobile app segment is expected to dominate the market with a 48.47% share in North America and 49.26% share in Europe
- On the basis of trading permission level, the market is segmented into Level 1, Level 2, Level 3, and Level 4. In 2024, the level 1 segment is expected to dominate the market with a 41.65% share in North America and 40.82% share in Europe
- On the basis of pricing model, the market is segmented into free and subscription based. In 2024, the free segment is expected to dominate the market with a 55.37% share in North America and 55.40% in Europe
- On the basis of number of styles, the market is segmented into American style options and European style options. In 2024, the American style option segment is expected to dominate the market with a 61.25% share in North America and 62.35% in Europe
Major Players
Data Bridge Market Research analyzes Ally Financial Inc (U.S.), Bank of America Corporation (U.S.), E*TRADE from Morgan Stanley (U.S.), Charles Schwab & Co., Inc. (U.S.), Robinhood (U.S.), as the major players operating in the North America options trading platform market.
Data Bridge Market Research analyzes Interactive Brokers LLC (U.S.), IG Group Holdings plc (U.K.), Bank of America Corporation (U.S.), Charles Schwab & Co., Inc. (U.S.), Robinhood (U.S.), as the major players operating in the Europe options trading platform market.
Market Development
- In April 2024, Charles Schwab has been named the Best Investing Platform Overall by U.S. News & World Report for the second consecutive year. Additionally, Schwab was recognized as the Best Investing Platform for Stock, Options, and Forex Trading. This recognition reinforces Schwab's position as a top destination for investors, potentially attracting more users, including those interested in options trading, and enhancing its reputation in the industry
- In March 2024, Interactive Brokers LLC launched Daily Options on the CAC 40 index expanding their product suite for experienced investors. This offering allows traders to execute short-term strategies and manage exposure to the French stock market efficiently. With a comprehensive range of options markets worldwide, advanced trading tools, competitive pricing, and extensive educational resources, Interactive Brokers continues to empower traders with comprehensive solutions
- In February 2024, ETRADE from Morgan Stanley has been recognized as the top online broker for mobile investing and web trading by StockBrokers.com, earning 15 "Best in Class" distinctions. This recognition enhances ETRADE's reputation and credibility, potentially attracting more traders and investors to its platform. The positive reviews emphasize E*TRADE's ease of use, research depth, and range of investing and trading tools, which could further enhance customer engagement and trading activity
- In December 2023, eToro USA LLC expanded its US offering by adding nearly 700 new stocks bringing its total assets to 4,790. The move enriches user investment options, allowing for greater portfolio diversification. eToro's zero-commission policy on newly added stocks enables users to trade without incurring extra fees, enhancing cost-effectiveness. The company's partnership with Bridgewise to launch Fundamental-AI for advanced stock analysis demonstrates its commitment to leveraging technology for investor benefit
- In July 2023, Public Holdings Inc. announced its ground-breaking move to share 50% of options trading revenue directly with members, aiming to revolutionize the trading landscape. By prioritizing transparency and offering low-cost options trading, Public positions itself as a go-to platform for investors. These initiative benefits customers by providing them with insights into trading costs and incentives, while offering comprehensive educational resources and advanced analytics
Regional Analysis
Geographically, the countries covered in the North America and Europe options trading platform market report are U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, Russia, Turkey, Belgium, Netherlands, Norway, Finland, Switzerland, Denmark, Sweden, Poland, and rest of Europe .
As per Data Bridge Market Research analysis:
North America is expected to dominate and be the fastest growing region in the options trading platform market
North America is dominating the options trading platform market due to its larger market capitalization, well-structured regulation, and higher total number of futures and options traded on exchanges. These factors contribute to North America's stronger and more developed options trading infrastructure, attracting more traders and investments compared to Europe.
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