Algorithmic trading refers to the use of computer programs to automatically execute trades in financial markets. It is also known as automated trading or black box trading. Algorithmic trading is used by institutional investors such as hedge funds, investment banks, and pension funds, as well as by individual traders. These traders use algorithms to make trading decisions based on pre-defined rules, such as the price of the asset, volume, and time.
The main advantage of algorithmic trading is speed. The algorithms can analyze vast amounts of financial data and execute trades in milliseconds, which is faster than human traders. This speed allows algorithmic traders to take advantage of market inefficiencies and price discrepancies that may only exist for a split second. Another advantage of algorithmic trading is that it removes emotions from the trading process. Human traders may make irrational decisions based on fear or greed, while algorithms are programmed to follow a set of rules consistently.
The global algorithmic trading market is projected to rise by USD 13.7 billion by 2029, according to the latest market study results. It is anticipated to expand at a CAGR of 10.7 percent during the forecast period.
The report covers market size and growth, segmentation, regional breakdowns, competitive landscape, trends and strategies for global algorithmic trading market. It presents a quantitative analysis of the market to enable stakeholders to capitalize on the prevailing market opportunities. The report also identifies top segments for opportunities and strategies based on market trends and leading competitors’ approaches.
This industry report offers market estimates and forecasts of the global market, followed by a detailed analysis of the component, type, deployment mode, type of traders, and region. The global market for algorithmic trading can be segmented by component: solutions (platforms and software tools), services. According to the research, the solutions segment had the largest share in the global algorithmic trading market. Algorithmic trading market is further segmented by type: bonds, cryptocurrencies, exchange-traded fund (ETF), foreign exchange market (forex), stock markets, others. In 2022, the stock markets segment made up the largest share of revenue generated by the algorithmic trading market. Based on deployment mode, the algorithmic trading market is segmented into: cloud-based, on-premises. Among these, the cloud-based segment was accounted for the highest revenue generator in 2022. On the basis of type of traders, the algorithmic trading market also can be divided into: institutional investors, retail investors. The institutional investors segment captured the largest share of the market in 2022. Algorithmic trading market by region is categorized into: North America, Europe, Asia-Pacific, MEA (Middle East and Africa), Latin America. According to the research, North America had the largest share in the global algorithmic trading market.
Market Segmentation
By component: solutions (platforms and software tools), services
By type: bonds, cryptocurrencies, exchange-traded fund (ETF), foreign exchange market (forex), stock markets, others
By deployment mode: cloud-based, on-premises
By type of traders: institutional investors, retail investors
By region: North America, Europe, Asia-Pacific, MEA (Middle East and Africa), Latin America
The report explores the recent developments and profiles of key vendors in the Global Algorithmic Trading Market, including 63 Moons Technologies Limited, ARGO SE, Century Financial Consultancy LLC, IG Group Holdings plc, InfoReach, Inc., Interactive Brokers LLC, Jump Trading Holdings, LLC, Kuberre Systems, Inc., MetaQuotes Software Corp., QuantConnect Corporation, Quantcore Capital Management, LLC, Quod Financial Ltd., Refinitiv Ltd., Saxo Bank A/S, SK Advisory FZ LLC (ZagTrader), Software AG, Tata Consultancy Services Ltd, Tethys Technology, Inc., Thomson Reuters Corporation, Trading Technologies International, Inc., UOB Kay Hian Holdings Limited, Vela Trading Systems LLC, Virtu Financial, Inc., among others. In this report, key players and their strategies are thoroughly analyzed to understand the competitive outlook of the market.
*REQUEST FREE SAMPLE TO GET A COMPLETE LIST OF COMPANIES
Scope of the Report
• To analyze and forecast the market size of the global algorithmic trading market.
• To classify and forecast the global algorithmic trading market based on component, type, deployment mode, type of traders, region.
• To identify drivers and challenges for the global algorithmic trading market.
• To examine competitive developments such as mergers & acquisitions, agreements, collaborations and partnerships, etc., in the global algorithmic trading market.
• To identify and analyze the profile of leading players operating in the global algorithmic trading market.
Why Choose This Report
• Gain a reliable outlook of the global algorithmic trading market forecasts from 2023 to 2029 across scenarios.
• Identify growth segments for investment.
• Stay ahead of competitors through company profiles and market data.
• The market estimate for ease of analysis across scenarios in Excel format.
• Strategy consulting and research support for three months.
• Print authentication provided for the single-user license.