The Evolution Of Digital Stock Trading: The strategies incumbents and startups are using to stay relevant as Robinhood and other disruptive players reshape consumer stock trading

Executive Summary

The popularity of self-directed trading and investing is on the rise, creating a huge opportunity for online trading platforms (OTPs)—companies that connect individual and institutional investors with the global securities market.

Three Key Questions This Report Will Answer:

• What are the biggest trends reshaping the stock trading space (consolidation, fee-slashing, etc.)?
• What can incumbents in this space do to future-proof themselves against further digital innovations by upstarts like Robinhood et al?
• As incumbents consolidate, innovate, and cut prices, what strategies can stock trading startups adopt to fight back and make their business models sustainable?

WHAT’S IN THIS REPORT? In this report, we examine how stock trading startups have disrupted the industry. We first give an overview of stock market basics and key players. Next we look at how incumbents have responded to these new entrants, and how both parties are strategizing, diversifying, and expanding to stay competitive. Finally, we consider what their priorities should be going forward to stay relevant.