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

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.