In our latest report, US Self-Directed Market: The Evolving Marketplace and Associated Impact, Will and I discuss the outlook for the US retail brokerage market.
We examine the impact that the demographic shift from baby boomers to millennials and the growing inclusion of female investors has on the industry by analyzing their investing styles, product preferences, and overall generational differences that distinguish them from one another. We size the retail investor market and compare the self-directed investors to non-self-directed investors, then further break down the self-directed investor segment (by their frequency of trading) to assess how the market is a) growing, and b) responding to their unique needs, such as investor education, digital tools, social context features, and portfolio risk management tools. Finally, we address the key market players in the industry and compare them in key areas to understand how they differentiate themselves, remain competitive, and deliver the right service to clients all within a stringent regulatory and fee-pressured industry. From our research, we are able to draw forward-looking conclusions around market growth from both an investor standpoint, as well as areas of investment opportunities for brokerage firms and platform providers.