Assets Under the Management of Neobrokers to Grow by 30% and hit $606B Value by 2027

November 9, 7:44 am

Over the past six years, more than 50 million people have turned to low-cost neobroker apps, which have given them access to a wide range of financial products, from stocks and bonds to mutual funds and ETFs, while cutting down trading costs. Today, the total value of assets under the management of these digital brokers is $463bn, four times more than just six years ago, and the entire market is expected to continue growing in the following years.

According to data presented by AltIndex.com, the total value of assets under the management of neobrokers is expected to jump by 30% and hit $606bn by 2027.

More than 15 million People to Start Using Neobrokers in the Next Four Years

The digital onboarding of investors searching for an easier and quicker way to build their portfolios has helped neobrokers to spring up like mushrooms in recent years. Their user-friendly interfaces, reduced trading costs, and the ability to participate in the stock market with only a small amount of money have drawn millions of users to the market. Neobrokers enabled trading on the go, anywhere, anytime, and retail investors loved it.

According to a Statista survey, the total value of assets under the management of neobrokers amounted to $101.1bn in 2017. A year later, this figure jumped by 62% to $164.4bn. Statistics show 2019, 2020, and 2021 all saw double-digit growth rates, causing the total value of assets to double and hit $395bn. However, 2022, the worst year for the stock market since the last recession, stopped this impressive growth, with the assets under the management of neobrokers rising by only 5% YoY to $415bn.

Although the annual growth rate recovered to 11% in 2023, that is still deep below the figures seen in the past six years. Statista expects the annual growth rates to continue cooling in the following years and drop to only 5% in 2027. But despite that, the total value of assets under the management of neobrokers will jump to over $606bn, showing a sixfold increase in ten years.

Statista also expects more than 15 million people to start using neobrokers in the next four years, despite the market growth slowing down. In 2023, more than 73 million people have used the conveniences of these digital brokers. By 2027, this number will jump to 88 million.

Every Fourth Trader Using Neobrokers is from the United States; But China is Still the Fastest-Growing Market

In global comparison, the United States is, without a doubt, the number-one market for neobrokers. More than half of the total value of assets under the management of neobrokers in 2023, or $238bn, comes from the United States, while every fourth trader using these digital brokers is an American.

Statista expects the US market to grow by another 27% and hit a $303bn value in the next four years, with nearly 20 million Americans using neobrokers by 2027.

While still behind the United States in terms of users and total value of managed investments, the Chinese market will see nearly three times bigger growth in this period. According to Statista, the total value of assets under the management of nebrokers in China will surge by 64% in the next four years, rising from $42bn to $69bn. Also, the country will reach 16.5 million users in the neobrokers segment, up from 13.5 million this year. Far below, Germany as the third-largest neobrokers market globally, follows with an 18% growth and $26.5bn in the total value of managed investments by 2027.

Get More Insights

Sign up and get access to a personalized dashboard, deeper insights, AI stock picks, stock alerts, weekly newsletter and much more.