Report : Social Trading Platform Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Platform (PC and Mobile), End User (Individual Traders and Professional Traders), and Asset Class (Equity, Commodity, Derivatives, Crypto, and Others)
According to our latest market study, titled "Social Trading Platform Market Forecast to 2028 – COVID-19 Impact and Analysis – by Platform (PC, and Mobile), End User (Individual Traders, and Professional Traders), and Asset Class (Equity, Commodity, Derivatives, Crypto, and Others)," the market is projected to reach US$ 3,774.17 million by 2028 from US$ 2,229.56 million in 2021. It is expected to register a CAGR of 7.8% from 2021 to 2028.
Customized trading platform software effectively increases the organizations' revenue and provides better customer satisfaction. Traders widely adopt a customized trading platform for their easy use. Customized trading platforms provide customers with detailed and easy-to-read charts, actual-time statistics, and customized reporting systems. For instance, in May 2021, ParagonEX (financial technology leader) launched a fully customizable trading platform, allowing its broker clients to decide on every detail of the platforms' look and feel. The customization features every element of the trading platform, which allows for endless customization per broker or end user. The new platform allows each broker to have a unique appearance, displaying elements of their choice, thus creating a distinct brand identity and catering to the profile and mix of their end users. Customized trading platforms also offer advanced and detailed chart analysis according to customers' needs. Thus, due to all these benefits offered by the customized trading platforms, contributing to the social trading platform market growth globally.
Based on the platform, the social trading platform market is segmented into PC and mobile. In 2021, mobile segment led the global market. The rapid dispersion of smartphones and rise in Internet penetration has made the stock market app a great platform for investors to trade in the stock markets. Based on end users, the market is segmented into individual traders and professional traders. In 2021, individual traders segment led the global social trading platform market. Individual traders are non-professional investors or retail individuals engaged explicitly in buying and selling stocks, bonds, securities, or funds that contain a basket of securities, such as mutual funds and exchange-traded funds in their accounts, typically through traditional or online brokerage firms. Based on asset class, the market is segmented into equity, commodity, derivatives, crypto, and others. In 2021, crypto segment led the global social trading platform market. With the largest share, crypto-currency is a type of currency that deploys digital files as money and uses cryptography to secure transactions.
Impact of COVID-19 Pandemic on Social Trading Platform Market
In 2020, the COVID-19 pandemic triggered social stress and led to economic disruptions worldwide. With the closure of production facilities and manufacturing units globally, the unemployment rate increased in several countries. The pandemic led the global economy toward recession. As the pandemic continued in 2020, it posed an unprecedented challenge for individuals to spend over a social trading platform. Thus, the trading industry was negatively affected. Therefore, the overall COVID-19 impact on the social trading platform market growth was negative in 2020.
Further, in 2021 and 2022, the relaxation of lockdown measures and gain in the employment rates positively impacted the growth in the social trading platform market. The increase in the trend of investment in cryptocurrency positively impacted market growth. According to the Free Press Journal, Bitcoin boomed and astonished the whole world, from approximately US$ 7,000 in March 2020 to more than US$ 54,000 till June 2021.
eToro; A-Trade; ZuluTrade; Tornado; MetaQuotes; PrimeXBT; Pepperstone markets limited; Tickmill; Octa Markets Incorporated; Assetgro fintech Pvt. Ltd; Public Holdings, Inc.; Naga group AG; Snowball-X are some key players operating in the social trading platform market. In addition to these, several other players were analyzed to understand the overall market.