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Spotlight

US Digital Stock Trading

How Digital Brokerages Can Offset Slowing New User Growth

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About This Report
US digital brokerages’ new user growth ticked up from 2019 to 2021. But growth will nosedive in 2022 and 2023, forcing digital brokerages to find new revenue growth strategies.
Table of Contents

Executive Summary

In the face of plummeting new user growth in 2022 and 2023, US digital brokerages will need to rapidly roll out new strategies to overcome a drop in revenues from trading fees.

Key Question: What strategies can US digital brokerages employ to combat slowing growth rates and drive revenues?

KEY STAT: New digital brokerage user growth will plummet by 6.2 percentage points in 2022, down to 1.7%. Growth will flatline in 2023 as retail investors shift away from equity trading.

Here’s what’s in the full report

1file

Exportable files for easy reading, analysis and sharing.

1chart

Reliable data in simple displays for presentations and quick decision making.

2expert perspectives

Insights from industry and company leaders.

    Table of Contents

    1. Executive Summary
    2. Digital Brokerages Must Rethink Revenue Strategies to Combat Flat User Growth Ahead
    3. What’s Threatening Digital Brokerages’ Revenue Growth Potential?
    1. How Digital Brokerages Can Win New Users, Increase Revenues from Existing Ones, and Avoid Churn
    2. Insider Intelligence Interviews
    3. Read Next
    1. Sources
    2. Media Gallery

    Interviewed for This Report

    Elad Lavi
    eToro
    Vice President, Corporate Development
    Interviewed February 21, 2022
    Steven Sanders
    Interactive Brokers
    Executive Vice President, Marketing and Product Development
    Interviewed February 9, 2022

    authors

    Michael Tattersall

    Contributors

    Eleni Digalaki
    Principal Analyst
    Wendy Louie-Lam
    Daniel Ramirez
    Researcher, Financial Services
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