3.6.7Segment

Securities Brokerage & Trading

Securities broker-dealers, discount brokers, and institutional trading desks facilitating equity and fixed income transactions.

5
Verticals

Overview

Securities Brokerage & Trading covers broker-dealers, discount brokers, institutional trading desks, and exchanges facilitating equity and fixed-income transactions. It spans retail brokers (Schwab, Fidelity, Robinhood), institutional and wholesale market-makers, and the exchanges (ICE, Nasdaq, CME) at the center of the market.

The retail side has consolidated dramatically (Schwab–TD Ameritrade) and moved to zero commissions, monetizing through interest, payment-for-order-flow, and scale. Exchanges and market infrastructure are high-margin, consolidated, and data-driven.

Market snapshot

Market size
~$341B
Growth
~5.9%CAGR (2017–22, nominal)
Companies
~28,800
FragmentationConsolidating

U.S. Census Bureau 2022 CBP/Economic Census, NAICS 523150/523160 (securities & commodity intermediation; 2017 codes 523110-140) + 523210 (exchanges).

Business model & economics

Revenue model
Commissions, spreads, interest, order-flow, and exchange/data fees
Recurring revenue
Moderate — interest and data recur; trading is volume-driven
EBITDA margin
Strong for exchanges; scale-driven for brokers
Capex intensity
Low
  • Retail brokerage consolidated and moved to zero commissions.
  • Monetization via interest, order-flow, and scale.
  • Exchanges and market data are high-margin and consolidated.

M&A deal context

Moderate deal activity

Who’s acquiring

Brokerage & exchange consolidatorsMarket-data & infrastructure strategicsFintech brokerage platforms

What’s driving deals

  • Retail-brokerage consolidation and scale.
  • Exchange and market-data M&A.
  • Interest- and order-flow-driven monetization.

Verticals in this segment

  • 3.6.7.1Discount & Online Brokerages

    Self-directed brokerage platforms offering low-cost trade execution.

  • 3.6.7.2Financial Exchange & Clearing House Operators

    Companies owning and operating securities exchanges, derivatives exchanges, and central clearing counterparties for equities, fixed income, and derivatives.

  • 3.6.7.3Full-Service Broker-Dealers

    Broker-dealers providing comprehensive investment and advisory services.

  • 3.6.7.4Institutional Trading & Prime Brokerage

    Prime brokers providing financing, clearing, and execution to institutions.

  • 3.6.7.5Market Making & Proprietary Trading

    Firms providing market liquidity and engaging in proprietary trading.

Find Securities Brokerage & Trading acquisition targets

Search Acquisera’s index for companies classified under Securities Brokerage & Trading (3.6.7) and build a targeted deal pipeline.

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