British fintech company AJ Bell experiencing a price reduction
Online Brokerage Market in the UK Thriving Amidst Digital Financial Revolution
The world of finance is undergoing a significant transformation, with online brokerage platforms gaining traction among investors. This shift is particularly evident in the UK, where the online brokerage market is embedded within a growing digital investment and ecommerce ecosystem.
Interactive Brokers (IBKR), a significant fintech company listed on Nasdaq (IBKR), operates globally and boasts a market capitalization of more than $85 billion. The total number of IBKR accounts has increased from 690,000 at the end of 2019 to 3.79 million by the end of May 2025. Notably, IBKR's shares trade at a multiple that is roughly the same as eToro's, an Israeli-based company listed on the US markets and with over 3.5 million funded accounts worldwide.
Cryptocurrency and associated digital assets are rising in prominence in the fintech sector. In fact, crypto trading is expected to account for 37% - 43% of eToro's revenues in 2024. This emphasis on digital assets is reflected in the growth of platforms like Robinhood, which experienced a significant increase in customers between mid-2020 and mid-2021.
The rise of online brokerage platforms in the UK can be traced back to the 1980s after financial deregulation, with the emergence of fund supermarkets like Hargreaves Lansdown. Today, neobanks such as Starling and Monzo are becoming more prevalent, offering innovative solutions to traditional banking services.
One of the most notable recent developments in the UK online brokerage market is the acquisition of Freetrade by IG Group, a profitable spread betting company. The acquisition aims to expand IG Group's share-dealing offering, reflecting the growing importance of online platforms in the trading of shares (and bonds).
The London Stock Exchange accounts for about 4% of the global stock market, highlighting the significance of the UK market within global finance. Online brokerage platforms in the UK, such as Interactive Brokers and Plus500, are popular among investors for their access to UK and global markets, including unique products like contracts for difference (CFDs).
The broader UK retail and ecommerce markets show strong growth trends, with ecommerce sales increasing significantly by 14.75% year-over-year in June 2025 compared to 2024, indicating a favorable environment for online financial services growth. Although no direct recent market size or CAGR for online brokerages is stated, the sustained growth in digital retail and investment platforms suggests a positive growth trend in online brokerage uptake.
AJ Bell, a UK fintech company, has assets under administration of £90 billion. Earnings per share (EPS) at AJ Bell are expected to grow by 16% in the current financial year, with analysts forecasting revenue growth of 20% in the coming year.
The government is increasingly determined to encourage savers to invest, mirroring trends in the US and other European countries. This push towards investment is likely to further fuel the growth of the online brokerage market in the UK.
In conclusion, while precise numeric data on UK online brokerage market size and growth rate is not present, the market is likely expanding alongside broader digital financial service trends in 2025. The London Stock Exchange's global weight supports a stable base for the UK online brokerage market, which is embedded within a growing digital investment and ecommerce ecosystem, supported by technology and increasing investor engagement on platforms.
- Investors in the UK are turning to online brokerage platforms for investing, as these platforms are thriving within a growing digital investment and ecommerce ecosystem.
- Cryptocurrency and digital assets are gaining prominence in the fintech sector, accounting for a significant percentage of eToro's revenues in 2024 and driving the growth of platforms like Robinhood.
- Online brokerages like Interactive Brokers and Plus500 in the UK are popular among investors due to their access to both UK and global markets, including unique products like contracts for difference (CFDs).
- AJ Bell, a UK fintech company, is experiencing growth in assets under administration and earnings per share, reflecting a favorable environment for online financial services.
- The government is pushing to encourage savers to invest, mirroring trends in other countries, which is likely to further fuel the growth of the online brokerage market in the UK.
