The value of the global algorithmic trading market will reach $ 31,494 million by 2028 and will grow at a compound annual growth rate (CAGR) of 12.7% from 2022.
This is according to New reportGlobal Algorithmic Trading Platform Market Research Report 2022, published by market research firm Valuates Reports.
The report noted that, based on the region, the Asia Pacific region is expected to be the most lucrative in algorithmic trading (or algorithmic trading) within a specified time period.
Why is algorithmic trading growing?
According to the report, lower transaction costs and increased government regulation are the main drivers of the growth of the algorithmic trading market.
Other factors are the growing demand for market surveillance and the surge in demand for fast, reliable and efficient order execution.
Valuates Reports explains:
As a result, traders are adopting algorithmic trading that allows them to quickly identify and analyze arbitrage opportunities.
The report also notes that larger brokerage firms and institutional investors rely on algorithmic trading to reduce the costs associated with trading.
This is because algorithmic trading makes it easier and faster to execute orders, even trading on exchanges.
Valuate Reports further explained that algorithmic trading allows traders and investors to benefit from small fluctuations in asset prices.
Algorithm trading is driven by a surge in demand for effective trading to enable users to execute transactions quickly, he said.
How does data drive algorithmic trading?
According to Valuates Reports, the increasingly important role of data in investment decisions is another reason why algorithmic trading is gaining momentum.
The report found that organizations in sectors such as banking, insurance and wealth management are adopting more artificial intelligence and machine learning to leverage the data available on digital investment channels.
These AI-powered trading platforms evaluate vast amounts of data much faster than people. As a result, AI and algorithms in financial services are opportunities for growth in the algorithmic trading market during the forecast period. We provide, “explained the advisory farm.
The increase in disposable income has also spurred an increase in algorithmic trading activity, the report observed.
Submarket analysis
According to Valuates Reports, the global algorithmic trading market can be categorized by component, asset type, deployment mode, and trader type.
Below the components are solution providers and service providers, and under asset types are stock markets, forex, exchange traded funds, fixed income, cryptocurrencies, and other types of asset classes.
Meanwhile, cloud-based and on-premises are options in deployment mode, the advisory firm wrote in a press statement highlighting the main findings of the report.
Institutional investors, long-term and short-term traders, and individual investors make up the categories of traders.
On the other hand, in the deployment mode category, Valuate Reports believes that the cloud-based solution submarket is expected to be the most profitable.
This is because more financial institutions are using cloud-based solutions to increase their productivity and efficiency.
This solution type “guarantees efficient process automation, data storage, and cost-effective management,” the report states.
The Argo Trading Report identifies key players in the algorithmic trading market, including 63Moons, Virtu Financial, and Refinitiv Limited.
Others include Metaquotes Software Corporation, Symphony Fintech Solutions Pvt Limited and ArgoSe.
The value of the global algorithmic trading market will reach $ 31,494 million by 2028 and will grow at a compound annual growth rate (CAGR) of 12.7% from 2022.
This is according to New reportGlobal Algorithmic Trading Platform Market Research Report 2022, published by market research firm Valuates Reports.
The report noted that, based on the region, the Asia Pacific region is expected to be the most lucrative in algorithmic trading (or algorithmic trading) within a specified time period.
Why is algorithmic trading growing?
According to the report, lower transaction costs and increased government regulation are the main drivers of the growth of the algorithmic trading market.
Other factors are the growing demand for market surveillance and the surge in demand for fast, reliable and efficient order execution.
Valuates Reports explains:
As a result, traders are adopting algorithmic trading that allows them to quickly identify and analyze arbitrage opportunities.
The report also notes that larger brokerage firms and institutional investors rely on algorithmic trading to reduce the costs associated with trading.
This is because algorithmic trading makes it easier and faster to execute orders, even trading on exchanges.
Valuate Reports further explained that algorithmic trading allows traders and investors to benefit from small fluctuations in asset prices.
Algorithm trading is driven by a surge in demand for effective trading to enable users to execute transactions quickly, he said.
How does data drive algorithmic trading?
According to Valuates Reports, the increasingly important role of data in investment decisions is another reason why algorithmic trading is gaining momentum.
The report found that organizations in sectors such as banking, insurance and wealth management are adopting more artificial intelligence and machine learning to leverage the data available on digital investment channels.
These AI-powered trading platforms evaluate vast amounts of data much faster than people. As a result, AI and algorithms in financial services are opportunities for growth in the algorithmic trading market during the forecast period. We provide, “explained the advisory farm.
The increase in disposable income has also spurred an increase in algorithmic trading activity, the report observed.
Submarket analysis
According to Valuates Reports, the global algorithmic trading market can be categorized by component, asset type, deployment mode, and trader type.
Below the components are solution providers and service providers, and under asset types are stock markets, forex, exchange traded funds, fixed income, cryptocurrencies, and other types of asset classes.
Meanwhile, cloud-based and on-premises are options in deployment mode, the advisory firm wrote in a press statement highlighting the main findings of the report.
Institutional investors, long-term and short-term traders, and individual investors make up the categories of traders.
On the other hand, in the deployment mode category, Valuate Reports believes that the cloud-based solution submarket is expected to be the most profitable.
This is because more financial institutions are using cloud-based solutions to increase their productivity and efficiency.
This solution type “guarantees efficient process automation, data storage, and cost-effective management,” the report states.
The Argo Trading Report identifies key players in the algorithmic trading market, including 63Moons, Virtu Financial, and Refinitiv Limited.
Others include Metaquotes Software Corporation, Symphony Fintech Solutions Pvt Limited and ArgoSe.