Social Trading Platform Market Research Report and Outlook by 2028

The global market for social trading platforms is projected to expand from US$ 2,229.56 million in 2021 to US$ 3,774.17 million by 2028, reflecting a compound annual growth rate (CAGR) of 7.8% during this period.

As the world population increases, so does the number of individuals utilizing the internet. According to a January 2021 report by DataReportal, there are approximately 4.7 billion internet users globally, which constitutes 59% of the total population. Notably, 92.6% of these users (around 4.3 billion) connect to the internet via mobile devices, with countries like the UAE, Denmark, and Sweden leading in internet penetration rates.

Before the onset of 2020, the Asia Pacific (APAC) region boasted the largest number of internet users, exceeding 2.5 billion, followed by Europe with nearly 720 million users, as reported by Yahoo Finance. China dominated the global market with over 854 million users, while the United States and India followed with 560 million users each, according to the same Yahoo Finance source.

In contrast, certain nations in the Middle East and Africa, such as Qatar, Oman, and Kuwait, are still in the nascent stages of digitalization, exhibiting relatively low internet penetration. However, there has been a steady rise in awareness, which has contributed to an increase in internet users. This surge has enabled various industries to transition their operations to digital platforms, including the adoption of social trading as a cost-effective trading method. The COVID-19 pandemic further accelerated this trend, making online trading the preferred option and significantly boosting the social trading platform market.

Effects of the COVID-19 Pandemic on the Global Social Trading Platform Market

Prior to the COVID-19 pandemic, social trading platforms played a crucial role in the digital transformation of financial institutions and banking services. In April 2019, spending on digital transformation reached $1.18 trillion, marking a 17.9% increase from 2018, as reported by Business Wire. This demand for digital transformation was a key driver for the growth of the social trading platform market.

However, the pandemic in 2020 brought about widespread social and economic turmoil, resulting in the shutdown of production facilities and manufacturing units, alongside rising unemployment rates. These pandemic-induced challenges led to a global recession, making it difficult for individuals to invest in social trading platforms. Consequently, the trading sector experienced a downturn in 2020.

Nevertheless, the easing of lockdown restrictions and a rebound in employment rates in 2021 and 2022 positively influenced the social trading platform market. Additionally, the growing interest in cryptocurrency investments contributed to market expansion, with Bitcoin's value soaring from approximately $7,000 in March 2020 to over $54,000 by June 2021, as noted by the Free Press Journal.

While the rise in unemployment had adverse effects on the social trading platform market, the increased focus on cryptocurrency investments during the forecast period is expected to foster market growth and create new opportunities.

The social trading platform market is segmented based on platform type into PC and mobile categories. In 2021, the mobile segment dominated the market, holding the largest share. The market is also divided by end user into individual traders and professional traders, with individual traders representing the largest segment in 2021. Furthermore, the market is categorized by asset class into equity, commodity, derivatives, crypto, and others, with the crypto segment leading in market share in 2021.

Regionally, the social trading platform market is divided into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). In 2021, North America held the largest market share.

The overall size of the social trading platform market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the social trading platform market across all segments. Additionally, primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders specializing in the social trading platform market.

Key players in the social trading platform market include eToro, A-Trade, ZuluTrade, Tornado, MetaQuotes, PrimeXBT, Pepperstone Markets Limited, Tickmill, Octa Markets Incorporated, Assetgro Fintech Pvt. Ltd (Stockgro), Public Holding, Inc., Naga Group AG, and Snowball X.