The Do It Yourself Online Brokerage Industry – in an exciting position for future growth

March 28, 2017

The digital economy has propagated the use of online brokerages and the industry is in an exciting position for future growth, according to a report from Beringer Finance that takes a closer look at do-it-yourself (DIY) online brokerage industry.

– In the spirit of the digital era and with increasing tech-sophistication amongst consumers, we observe that increasingly large swaths of the populace prefer a DIY approach to manage their savings. The online brokerages are happy to oblige and also have the potential to thrive in the digital economy, says Ulrik Årdal Zurcher who has written the report.

The self-directed brokerage industry, as we know it today, came to prominence with the mainstream use of the internet in the second half of the 90s. The diffusion of internet technologies democratized the trading of securities and significantly lowered the barriers to entry on the supply side. While the term “discount-broker” was first properly introduced in 1975, following deregulation in the US, the online discount-broker industry was born in the late 90s. A discount broker is close to synonymous with a self-directed brokerage, or DIY.

In this report Beringer Finance covers the evolution of DIY brokerage industry to date, the industry’s most notable characteristic – price pressure, as well as the major FinTech threats. Additionally, it evaluate the strategic directions that newcomers have chosen to pursue versus the incumbent’s positions.

You can find the whole report here:
Thematic – DYI