The European Retail Online Trading Market: Trends in Europe and the Nordic Region

by Ashley Globerman,  Isabella Fonseca, February 27, 2014
Industry Trends
EMEA

Abstract

The European retail online trading market remains dynamic due to challenging economic conditions, stringent regulatory reformations, varying client expectations, and narrow commissions and interest rates. Retail investors continue to be a diverse group with differing affluence levels, investment knowledge and skills, and trading preferences.

In the report The European Retail Online Trading Market: Trends in Europe and the Nordic Region, Celent identifies trends in the retail online trading industry across Western Europe, Eastern Europe, and the Nordic region. The following countries are included: France, Germany, Italy, Spain, Switzerland, United Kingdom, Czech Republic, Hungary, Poland, Romania, Russia, Denmark, Finland, Norway, and Sweden.

This report begins with a market overview of the European retail online trading market, including drivers, market and technology trends, followed by market sizing of each of the 15 countries including a further segmentation of each country’s self-directed market. Celent will then review investor product preferences and product availability, as well as channel development as it relates to digital strategies. This study also examines the challenges and opportunities in the retail online trading space.

This report concludes with a prospective look at the state of the retail online brokerage industry in Europe, growth of the various retail investor categories, and what online brokerages can do to differentiate themselves in the marketplace.

Technology continues to play a significant role in how businesses will expand their existing client base and access new clients. With the proliferation of the Internet and smartphones, the way in which clients prefer to perform banking or trading activities has evolved significantly. Firms continue to outsource and partner with external vendors in the current cost-controlled environment. Investment product preferences and availability across Western Europe, Eastern Europe, and the Nordic region vary slightly due to cultural and historical investment preferences, sophistication of the country’s financial market, and the impact of the financial crisis on the market and investor confidence.

The way in which clients prefer to perform banking and trading activities is evolving. Firms continue to outsource and partner with external vendors in the current cost-controlled environment. “Firms are continually investing in the enhancement and development of their online trading platforms, mobile apps, social media presence, and social trading platforms. Technology development, including digital strategies is at the forefront of firms’ agendas,” says Ashley Globerman, Analyst with Celent’s Wealth Management Group and coauthor of the report. “The degree to which European firms respond to these investor preferences varies by country.”

“A number of factors are crucial for firms to compete in the online trading market, but one of the most important ones is providing transparency and control of investment decisions to retail investors,” adds Isabella Fonseca, Research Director at Celent. “To address this phenomenon, firms have focused on channel development to enhance the client experience.”

Celent will expand its research on the retail investor market in two upcoming reports: Sizing the Retail Investor Market: An Analysis of the North and Latin American Markets and Sizing the Retail Investor Market: An Analysis of Western European Market.  

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Market Overview

2

 

Market Trends

3

Market Sizing

5

 

Definitions and Segmentation

5

 

Western Europe

6

 

Eastern Europe

12

 

Nordic Region

17

Investment Product Data

22

 

Western Europe

23

 

Eastern Europe

24

 

Nordic Region

24

 

Investment Product Trends

25

Channel Development

27

 

Online Channel Development

29

 

Social Media Channel Development

30

 

Mobile Channel Development

31

Conclusion

34

Leveraging Celent’s Expertise

36

 

Support for Financial Institutions

36

 

Support for Vendors

36

Related Celent Research

37

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