Equity Financial Brokerage Market, Online Discount Brokerage Market - Ken Research

Transformation In The Worldwide Financial Brokerage Market Outlook: Ken Research

Financial Brokerage Market: – The financial market in the Philippines is presently one of the most auspicious financial markets in the South-Asia region with the very few financial products suggested for trading at recent but will augment in a few years. Trading activities in the Philippines the region is exceedingly regulated owing to very low trading volume and comparatively fewer trading accounts, most of the brokerage firms deliver the brokerage services at the bottommost cost prescribed by the SEC. Presently, the players charge brokerage fees for equity trading and schedule to enlarge the financial services towards asset management, mutual funds, algorithmic trading, wealth management, top picks, and several other services that can lure the consumers.

Additionally, the overall revenue in the financial brokerage industry observed an increasing trend on account of a deduction in simplification of tax structure for trading, growing investor’s confidence and political stability in the Philippines in the last years. Based on the type of trading activity, in the market of financial brokerage, the segment of equity has registered the overall market in the terms of transaction volume throughout the review period which was supplemented by the greater liquidity in the equity, issuance of bonus shares in few instances thereby extenuating the considerable share of equity in the overall market. Moreover, the commodities’ trading was adjourned by the SEC back in the 1990s and has not been begun yet. PSE is in the initial phase to restart the Commodities and Derivatives Exchange and is predicted to begin the sector very soon. Owing to the nonattendance of the Commodities and Future exchange, trading in the several other instruments have not been ubiquitous yet. Commencement of trading in this sector will open an added revenue stream for the brokerage corporate.

Whereas, based on the mode of trading, in the financial brokerage market, trades are positioned by the investors along with the traditional model that is through the broker’s support or through the online mode where the investors place orders online by a trading platform.

For instance, during the period of 2013-2018, the Indonesia Financial Brokerage market was witnessed in an increasing stage wherein the market observed slow growth. The phase also witnessed presidentially and parliamentary elections and pursued lower awareness among the investors related to the financial markets.

The competitive landscape of the industry is categorized by the exceedingly fragmented market structure with 104 brokerage firms challenging majorly dependent on the transaction charges, service portfolio, quality of services, firm’s reputation and online trading conveniences for retail clients. Among the local brokerage firms, in terms of revenue the important, the player in the market is Mandiri Sekuritas involvement in the industry whereas CGS-CIMB has the maximum revenue market share among the global firms.

Furthermore, the Financial Brokerage market is anticipated to increase in terms of revenue owing to the steady the positive economic outlook of the country, develop in the country’s rating, estimated growth in the foreign portfolio investments, augmenting the penetration rate among the domestic investors, increasing the number of IPOs, capital demands of the government for infrastructure building and the boost in the mutual fund’s sector of the capital market. Therefore, in the near years, it is anticipated that the global market of financial brokerage will increase around the globe more significantly over the coming years.

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