Securities Brokerages Industry Profile

Report Page Length: 10-12
Last Quarterly Update: 1/29/2018
SIC Codes: 6211
NAICS Codes: 52312
Chapters Include:
Industry Overview Trends & Challenges Industry Forecast
Quarterly Industry Update Call Prep Questions Website & Media Links
Business Challenges Financial Information Glossary & Acronyms
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Excerpt from Securities Brokerages Industry Profile

Companies in this industry broker deals for buyers and sellers of securities. Major companies include TD Ameritrade, E*Trade, and Charles Schwab, and brokerage units of Citigroup and Wells Fargo (all based in the US), as well as Credit Suisse (Switzerland), Deutsche Bank (Germany), Macquarie Group (Australia), and Nomura (Japan).

Many large US-based brokers, particularly those affiliated with major banks and financial services companies, operate internationally. Major global financial hubs include Hong Kong, London, New York, and Singapore. London's status as a global financial center has been cast into doubt following the UK's decision in 2016 to leave the European Union.

The securities brokerage industry in the US includes about 40,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $120 billion. The industry is consolidating: since 2010, the number of brokerage firms in the US has fallen by about 16%, according to FINRA.


Demand is driven by the returns on securities relative to alternative investments. The profitability of individual companies depends on efficient operations and good marketing. Large companies have economies of scale in operations and high name recognition. Small companies can compete effectively by offering better customer service. The US industry is highly concentrated. Four firms (ranked by customers and assets) -- TD Ameritrade (owner of Scottrade), E*Trade, Fidelity Investments, and Charles Schwab -- dominate the business in the US. Discount brokerage firms, ...

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