Market Overview:
The global automated algo trading market is expected to grow at a CAGR of 9.5% during the forecast period from 2018 to 2030. The market growth can be attributed to the increasing demand for automated algo trading solutions from personal investors, investment funds, and investment banks across the globe. Additionally, the growing popularity of algorithmic trading among retail traders and institutional investors is also contributing significantly to the growth of this market. On the basis of type, the global automated algo trading market can be segmented into trade execution, statistical arbitrage, electronic market-making, liquidity detection and others. The trade execution segment is estimated to account for a major share in terms of revenue in 2018 owing to its widespread adoption by personal investors as well as institutional investors across different regions worldwide. However, statistical arbitrage is projected to grow at a higher CAGR during the forecast period due its ability provide high returns with low risk levels compared with other types of algorithms available in this market. .
Product Definition:
An automated algo trading system is a computer program that can automatically trade stocks or other securities according to a pre-determined set of rules or algorithms. Automated algo trading is important because it can help traders make more efficient and profitable trades by automating the decision making process.
Trade Execution:
Trade execution is the portion of automated algo trading that involves buying and selling of financial instruments such as stocks, options, bonds, etc. through online trading systems. It helps in managing risks and capital along with providing a faster execution time than traditional markets. Trade Execution services are provided by Investment Banking Companies (IBCs) or Market Making firms that use high-speed computers to execute buy/sell orders for their clients quickly and efficiently.
Statistical Arbitrage:
Statistical Arbitrage is a process of using data analysis to search for price anomalies in various financial instruments. It's used by traders and investors to identify trading opportunities that are either rare or do not occur frequently enough. The advantages of statistical arbitrage include the ability to detect market abuse, find frauds in the marketplace, and utilize quantifiable information when making investment decisions.
Application Insights:
The global automated algo trading market is segmented by application into personal investors, investment funds, investment banks and others. The personal investors segment held the largest share in 2017. This can be attributed to growing awareness about investing through robots and computers as opposed to humans. Moreover, increasing adoption of robo-advisors is also propelling growth in this segment. Robo-advisors provide personalized financial advice based on a client¢â‚¬â„¢s profile for managing investments across multiple accounts efficiently Automated algo trading solutions are widely adopted by robo-advisor firms as it allows them to offer their services at lower costs while still maintaining profitability margins over traditional advisors.
The investment funds application is expected to witness significant growth over the forecast period owing to its ability to trade large blocks of shares with less human intervention time required between decisions.
Regional Analysis:
North America dominated the global market in 2017. The U.S., in particular, is a key contributor to the regional segment owing to the presence of prominent players such as Citadel LLC; DRW Holdings, Inc.; Knight Capital Group, Inc.; and Tradeweb LLC. These companies are engaged in providing automated trading solutions for institutional investors and hedge funds across various asset classes including equities, derivatives & currencies, energy commodities & futures contracts etc.
Asia Pacific region is expected to witness significant growth over the forecast period owing to increasing adoption of these systems by retail investors for portfolio management as well as by high-frequency traders (HFTs) for trade execution purposes across emerging markets such as China and India among others.
Growth Factors:
- Increasing demand for automated algo trading from retail traders and institutional investors
- Rising popularity of algorithmic trading among individual investors
- Proliferation of low-cost, high-performance computing platforms and technologies
- Emergence of big data and artificial intelligence (AI) technologies
- Growing demand for transparent, low-latency execution services
Scope Of The Report
Report Attributes
Report Details
Report Title
Automated Algo Trading Market Research Report
By Type
Trade Execution, Statistical Arbitrage, Electronic Market-making, Liquidity Detection, Others
By Application
Personal Investors, Investment Funds, Investment Banks, Others
By Companies
AlgoTerminal, Cloud9Trader, Quantopian, Trading Technologies International, QuantConnect, AlgoTrader, InfoReach, Tethys Technology, Citadel
Regions Covered
North America, Europe, APAC, Latin America, MEA
Base Year
2021
Historical Year
2019 to 2020 (Data from 2010 can be provided as per availability)
Forecast Year
2030
Number of Pages
239
Number of Tables & Figures
168
Customization Available
Yes, the report can be customized as per your need.
Global Automated Algo Trading Market Report Segments:
The global Automated Algo Trading market is segmented on the basis of:
Types
Trade Execution, Statistical Arbitrage, Electronic Market-making, Liquidity Detection, Others
The product segment provides information about the market share of each product and the respective CAGR during the forecast period. It lays out information about the product pricing parameters, trends, and profits that provides in-depth insights of the market. Furthermore, it discusses latest product developments & innovation in the market.
Applications
Personal Investors, Investment Funds, Investment Banks, Others
The application segment fragments various applications of the product and provides information on the market share and growth rate of each application segment. It discusses the potential future applications of the products and driving and restraining factors of each application segment.
Some of the companies that are profiled in this report are:
- AlgoTerminal
- Cloud9Trader
- Quantopian
- Trading Technologies International
- QuantConnect
- AlgoTrader
- InfoReach
- Tethys Technology
- Citadel
Highlights of The Automated Algo Trading Market Report:
- The market structure and projections for the coming years.
- Drivers, restraints, opportunities, and current trends of market.
- Historical data and forecast.
- Estimations for the forecast period 2030.
- Developments and trends in the market.
- By Type:
- Trade Execution
- Statistical Arbitrage
- Electronic Market-making
- Liquidity Detection
- Others
- By Application:
- Personal Investors
- Investment Funds
- Investment Banks
- Others
- Market scenario by region, sub-region, and country.
- Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
- Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
- Government Policies, Macro & Micro economic factors are also included in the report.
We have studied the Automated Algo Trading Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2030.
Regional Analysis
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
Note: A country of choice can be added in the report at no extra cost. If more than one country needs to be added, the research quote will vary accordingly.
The geographical analysis part of the report provides information about the product sales in terms of volume and revenue in regions. It lays out potential opportunities for the new entrants, emerging players, and major players in the region. The regional analysis is done after considering the socio-economic factors and government regulations of the countries in the regions.
How you may use our products:
- Correctly Positioning New Products
- Market Entry Strategies
- Business Expansion Strategies
- Consumer Insights
- Understanding Competition Scenario
- Product & Brand Management
- Channel & Customer Management
- Identifying Appropriate Advertising Appeals
8 Reasons to Buy This Report
- Includes a Chapter on the Impact of COVID-19 Pandemic On the Market
- Report Prepared After Conducting Interviews with Industry Experts & Top Designates of the Companies in the Market
- Implemented Robust Methodology to Prepare the Report
- Includes Graphs, Statistics, Flowcharts, and Infographics to Save Time
- Industry Growth Insights Provides 24/5 Assistance Regarding the Doubts in the Report
- Provides Information About the Top-winning Strategies Implemented by Industry Players.
- In-depth Insights On the Market Drivers, Restraints, Opportunities, and Threats
- Customization of the Report Available
Frequently Asked Questions?
Automated Algo Trading is a type of algorithmic trading that uses computer programs to automatically buy and sell securities.
Some of the major players in the automated algo trading market are AlgoTerminal, Cloud9Trader, Quantopian, Trading Technologies International, QuantConnect, AlgoTrader, InfoReach, Tethys Technology, Citadel.
The automated algo trading market is expected to grow at a compound annual growth rate of 9.5%.
1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Automated Algo Trading Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Automated Algo Trading Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Automated Algo Trading Market - Supply Chain
4.5. Global Automated Algo Trading Market Forecast
4.5.1. Automated Algo Trading Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Automated Algo Trading Market Size (000 Units) and Y-o-Y Growth
4.5.3. Automated Algo Trading Market Absolute $ Opportunity
5. Global Automated Algo Trading Market Analysis and Forecast by Type
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Type
5.2.2. Y-o-Y Growth Projections by Type
5.3. Automated Algo Trading Market Size and Volume Forecast by Type
5.3.1. Trade Execution
5.3.2. Statistical Arbitrage
5.3.3. Electronic Market-making
5.3.4. Liquidity Detection
5.3.5. Others
5.4. Absolute $ Opportunity Assessment by Type
5.5. Market Attractiveness/Growth Potential Analysis by Type
6. Global Automated Algo Trading Market Analysis and Forecast by Application
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by Application
6.2.2. Y-o-Y Growth Projections by Application
6.3. Automated Algo Trading Market Size and Volume Forecast by Application
6.3.1. Personal Investors
6.3.2. Investment Funds
6.3.3. Investment Banks
6.3.4. Others
6.4. Absolute $ Opportunity Assessment by Application
6.5. Market Attractiveness/Growth Potential Analysis by Application
7. Global Automated Algo Trading Market Analysis and Forecast by Sales Channel
7.1. Market Trends
7.2. Introduction
7.2.1. Basis Point Share (BPS) Analysis by Sales Channel
7.2.2. Y-o-Y Growth Projections by Sales Channel
7.3. Automated Algo Trading Market Size and Volume Forecast by Sales Channel
7.3.1. Manufacturer/Distributor/Service Provider
7.3.2. Aftermarket
7.4. Absolute $ Opportunity Assessment by Sales Channel
7.5. Market Attractiveness/Growth Potential Analysis by Sales Channel
8. Global Automated Algo Trading Market Analysis and Forecast by Region
8.1. Market Trends
8.2. Introduction
8.2.1. Basis Point Share (BPS) Analysis by Region
8.2.2. Y-o-Y Growth Projections by Region
8.3. Automated Algo Trading Market Size and Volume Forecast by Region
8.3.1. North America
8.3.2. Latin America
8.3.3. Europe
8.3.4. Asia Pacific
8.3.5. Middle East and Africa (MEA)
8.4. Absolute $ Opportunity Assessment by Region
8.5. Market Attractiveness/Growth Potential Analysis by Region
8.6. Global Automated Algo Trading Demand Share Forecast, 2019-2026
9. North America Automated Algo Trading Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.2. North America Automated Algo Trading Market Size and Volume Forecast by Country
9.2.1. U.S.
9.2.2. Canada
9.3. Absolute $ Opportunity Assessment by Country
9.4. North America Automated Algo Trading Market Size and Volume Forecast by Application
9.4.1. Personal Investors
9.4.2. Investment Funds
9.4.3. Investment Banks
9.4.4. Others
9.5. Basis Point Share (BPS) Analysis by Application
9.6. Y-o-Y Growth Projections by Application
9.7. North America Automated Algo Trading Market Size and Volume Forecast by Type
9.7.1. Trade Execution
9.7.2. Statistical Arbitrage
9.7.3. Electronic Market-making
9.7.4. Liquidity Detection
9.7.5. Others
9.8. Basis Point Share (BPS) Analysis by Type
9.9. Y-o-Y Growth Projections by Type
9.10. Market Attractiveness/Growth Potential Analysis
9.10.1. By Country
9.10.2. By Product Type
9.10.3. By Application
9.10.4. By Sales Channel
9.11. North America Automated Algo Trading Demand Share Forecast, 2019-2026
10. Latin America Automated Algo Trading Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Latin America Average Pricing Analysis
10.2. Latin America Automated Algo Trading Market Size and Volume Forecast by Country
10.2.1. Brazil
10.2.2. Mexico
10.2.3. Rest of Latin America
10.3. Absolute $ Opportunity Assessment by Country
10.4. Latin America Automated Algo Trading Market Size and Volume Forecast by Application
10.4.1. Personal Investors
10.4.2. Investment Funds
10.4.3. Investment Banks
10.4.4. Others
10.5. Basis Point Share (BPS) Analysis by Application
10.6. Y-o-Y Growth Projections by Application
10.7. Latin America Automated Algo Trading Market Size and Volume Forecast by Type
10.7.1. Trade Execution
10.7.2. Statistical Arbitrage
10.7.3. Electronic Market-making
10.7.4. Liquidity Detection
10.7.5. Others
10.8. Basis Point Share (BPS) Analysis by Type
10.9. Y-o-Y Growth Projections by Type
10.10. Market Attractiveness/Growth Potential Analysis
10.10.1. By Country
10.10.2. By Product Type
10.10.3. By Application
10.10.4. By Sales Channel
10.11. Latin America Automated Algo Trading Demand Share Forecast, 2019-2026
11. Europe Automated Algo Trading Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Europe Average Pricing Analysis
11.2. Europe Automated Algo Trading Market Size and Volume Forecast by Country
11.2.1. Germany
11.2.2. France
11.2.3. Italy
11.2.4. U.K.
11.2.5. Spain
11.2.6. Russia
11.2.7. Rest of Europe
11.3. Absolute $ Opportunity Assessment by Country
11.4. Europe Automated Algo Trading Market Size and Volume Forecast by Application
11.4.1. Personal Investors
11.4.2. Investment Funds
11.4.3. Investment Banks
11.4.4. Others
11.5. Basis Point Share (BPS) Analysis by Application
11.6. Y-o-Y Growth Projections by Application
11.7. Europe Automated Algo Trading Market Size and Volume Forecast by Type
11.7.1. Trade Execution
11.7.2. Statistical Arbitrage
11.7.3. Electronic Market-making
11.7.4. iquidity Detection
11.7.5. Others
11.8. Basis Point Share (BPS) Analysis by Type
11.9. Y-o-Y Growth Projections by Type
11.10. Market Attractiveness/Growth Potential Analysis
11.10.1. By Country
11.10.2. By Product Type
11.10.3. By Application
11.10.4. By Sales Channel
11.11. Europe Automated Algo Trading Demand Share, 2019-2026
12. Asia Pacific Automated Algo Trading Market Analysis and Forecast
12.1. Introduction
12.1.1. Basis Point Share (BPS) Analysis by Country
12.1.2. Y-o-Y Growth Projections by Country
12.1.3. Asia Pacific Average Pricing Analysis
12.2. Asia Pacific Automated Algo Trading Market Size and Volume Forecast by Country
12.2.1. China
12.2.2. Japan
12.2.3. South Korea
12.2.4. India
12.2.5. Australia
12.2.6. Rest of Asia Pacific (APAC)
12.3. Absolute $ Opportunity Assessment by Country
12.4. Asia Pacific Automated Algo Trading Market Size and Volume Forecast by Application
12.4.1. Personal Investors
12.4.2. Investment Funds
12.4.3. Investment Banks
12.4.4. Others
12.5. Basis Point Share (BPS) Analysis by Application
12.6. Y-o-Y Growth Projections by Application
12.7. Asia Pacific Automated Algo Trading Market Size and Volume Forecast by Type
12.7.1. Trade Execution
12.7.2. Statistical Arbitrage
12.7.3. Electronic Market-making
12.7.4. Liquidity Detection
12.7.5. Others
12.8. Basis Point Share (BPS) Analysis by Type
12.9. Y-o-Y Growth Projections by Type
12.10. Market Attractiveness/Growth Potential Analysis
12.10.1. By Country
12.10.2. By Product Type
12.10.3. By Application
12.10.4. By Sales Channel
12.11. Asia Pacific Automated Algo Trading Demand Share, 2019-2026
13. Middle East & Africa Automated Algo Trading Market Analysis and Forecast
13.1. Introduction
13.1.1. Basis Point Share (BPS) Analysis by Country
13.1.2. Y-o-Y Growth Projections by Country
13.1.3. Asia Pacific Average Pricing Analysis
13.2. Middle East & Africa Automated Algo Trading Market Size and Volume Forecast by Country
13.2.1. Saudi Arabia
13.2.2. South Africa
13.2.3. UAE
13.2.4. Rest of Middle East & Africa (MEA)
13.3. Absolute $ Opportunity Assessment by Country
13.4. Middle East & Africa Automated Algo Trading Market Size and Volume Forecast by Application
13.4.1. Personal Investors
13.4.2. Investment Funds
13.4.3. Investment Banks
13.4.4. Others
13.5. Basis Point Share (BPS) Analysis by Application
13.6. Y-o-Y Growth Projections by Application
13.7. Middle East & Africa Automated Algo Trading Market Size and Volume Forecast by Type
13.7.1. Trade Execution
13.7.2. Statistical Arbitrage
13.7.3. Electronic Market-making
13.7.4. Liquidity Detection
13.7.5. Others
13.8. Basis Point Share (BPS) Analysis by Type
13.9. Y-o-Y Growth Projections by Type
13.10. Market Attractiveness/Growth Potential Analysis
13.10.1. By Country
13.10.2. By Product Type
13.10.3. By Application
13.10.4. By Sales Channel
13.11. Middle East & Africa Automated Algo Trading Demand Share, 2019-2026
14. Competition Landscape
14.1. Global Automated Algo Trading Market: Market Share Analysis
14.2. Automated Algo Trading Distributors and Customers
14.3. Automated Algo Trading Market: Competitive Dashboard
14.4. Company Profiles (Details Overview, Financials, Developments, Strategy)
14.4.1. AlgoTerminal
14.4.1.1. Overview
14.4.1.2. Financials
14.4.1.3. Developments
14.4.1.4. Strategic Outlook
14.4.2. Cloud9Trader
14.4.2.1. Overview
14.4.2.2. Financials
14.4.2.3. Developments
14.4.2.4. Strategic Outlook
14.4.3. Quantopian
14.4.3.1. Overview
14.4.3.2. Financials
14.4.3.3. Developments
14.4.3.4. Strategic Outlook
14.4.4. Trading Technologies International
14.4.4.1. Overview
14.4.4.2. Financials
14.4.4.3. Developments
14.4.4.4. Strategic Outlook
14.4.5. QuantConnect
14.4.5.1. Overview
14.4.5.2. Financials
14.4.5.3. Developments
14.4.5.4. Strategic Outlook
14.4.6. AlgoTrader
14.4.6.1. Overview
14.4.6.2. Financials
14.4.6.3. Developments
14.4.6.4. Strategic Outlook
14.4.7. InfoReach
14.4.7.1. Overview
14.4.7.2. Financials
14.4.7.3. Developments
14.4.7.4. Strategic Outlook
14.4.8. Tethys Technology
14.4.8.1. Overview
14.4.8.2. Financials
14.4.8.3. Developments
14.4.8.4. Strategic Outlook
14.4.9. Citadel
14.4.9.1. Overview
14.4.9.2. Financials
14.4.9.3. Developments
14.4.9.4. Strategic Outlook
14.4.10. COMPANY 10
14.4.10.1. Overview
14.4.10.2. Financials
14.4.10.3. Developments
14.4.10.4. Strategic Outlook
14.4.11. COMPANY 11
14.4.11.1. Overview
14.4.11.2. Financials
14.4.11.3. Developments
14.4.11.4. Strategic Outlook
14.4.12. COMPANY 12
14.4.12.1. Overview
14.4.12.2. Financials
14.4.12.3. Developments
14.4.12.4. Strategic Outlook
14.4.13. COMPANY 13
14.4.13.1. Overview
14.4.13.2. Financials
14.4.13.3. Developments
14.4.13.4. Strategic Outlook
14.4.14. COMPANY 14
14.4.14.1. Overview
14.4.14.2. Financials
14.4.14.3. Developments
14.4.14.4. Strategic Outlook
14.4.15. COMPANY 15
14.4.15.1. Overview
14.4.15.2. Financials
14.4.15.3. Developments
14.4.15.4. Strategic Outlook
14.4.16. COMPANY 16
14.4.16.1. Overview
14.4.16.2. Financials
14.4.16.3. Developments
14.4.16.4. Strategic Outlook
14.4.17. COMPANY 17
14.4.17.1. Overview
14.4.17.2. Financials
14.4.17.3. Developments
14.4.17.4. Strategic Outlook
14.4.18. COMPANY 18
14.4.18.1. Overview
14.4.18.2. Financials
14.4.18.3. Developments
14.4.18.4. Strategic Outlook
14.4.19. COMPANY 19
14.4.19.1. Overview
14.4.19.2. Financials
14.4.19.3. Developments
14.4.19.4. Strategic Outlook
14.4.20. COMPANY 20
14.4.20.1. Overview
14.4.20.2. Financials
14.4.20.3. Developments
14.4.20.4. Strategic Outlook
