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e-Trading Software Developers in the US - Market Research Report (2015-2030)

Terry Faber Terry Faber New York, United States Last Updated: July 2025 NAICS OD4749

Revenue

$7.8bn

2025

$9.0bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

14,304

Businesses

200

Wages

$X.Xbn

e-Trading Software Developers in the US industry analysis

The industry has faced persistent challenges despite efforts to stabilize revenue. The widespread adoption of zero-commission trading initially attracted large retail investors. Still, this approach has lost its allure as market participants have begun prioritizing pricing quality and overall service value. Investors now expect cost-free trades, lower general platform fees and smoother user experiences. In response, companies have restructured fee models, often offering basic access for free while reserving advanced features behind subscription paywalls. The introduction of premium tiers has produced mixed results; while these models have generated revenue, they’ve also struggled with market segments susceptible to price increases, capping potential growth.

Trends and Insights

  • Off-exchange trading is fueling major upgrades in electronic trading platforms. Developers rush to meet demand for secure, flexible and sophisticated software as institutional traders seek privacy and better pricing. Heavy investments in tech talent, cybersecurity and compliance are now the norm.
  • Trading platform fees are driving industry growth. E-trading software companies are seeing more users thanks to subscription and “freemium” fee models. As crypto trading volumes skyrocket, these fees provide platform providers a steady and growing revenue stream.
  • Silicon Valley attracts many software developers. The broader Western region also hosts a significant portion of finance software developers.
  • Competition has exploded with many brand-new entrants, especially mobile apps. Still, regulators are segmenting the market, pressuring new competitors to compete among themselves.
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Competitors

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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 3.7 % over the past five years, to reach an estimated $7.8bn in 2025.

Trends and Insights

Off-exchange trading boom significantly boosts demand for advanced e-trading software

  • Off-exchange trading volumes have surged since 2019, with Nasdaq Economic Research data showing these transactions breaking past 50.0% of the total market share for the first time in late 2024. Off-exchange trades, often conducted in dark pools or alternative trading systems, allow large blocks of shares to be transacted privately, outside of public exchanges, offering institutional traders greater flexibility and discretion when handling sizable transactions.
  • Additional trends and insights available with purchase
e-Trading Software Developers in the US
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

AI’s integration into trading systems raises costs and expectations for e-trading software developers

  • Demand for faster, AI-driven algorithmic trading increases as institutional investors seek more sophisticated analytics and real-time insights. Survey results from IG Prime in 2025 show that 41.0% of hedge funds expect AI to impact algorithmic trading in the coming year, indicating clear momentum in this area. As a result, developers are under pressure to deliver solutions incorporating advanced AI, raising competitive standards across the industry.

Biggest companies in the e-Trading Software Developers in the US

Company
Market Share (%)
2023
Revenue ($short_0)
2023
Profit ($short_0)
2023
Profit Margin (%)
2023

There are no companies that hold a large enough market share in the e-Trading Software Developers in the US industry for IBISWorld to include in this product.

Products & Services Segmentation

e-Trading Software Developers in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Trading Platform Fees, Professional Service and Software License. Trading Platform Fees is the largest segment of the e-Trading Software Developers in the US.

Trends and Insights

Trading platform fees drive growth as e-trading software adapts to crypto boom

  • Trading platform fees refer to subscription charges imposed by e-trading software developers on clients accessing their services and technology. These fees typically follow a monthly or annual model, often tiered by feature access and sometimes include a free version with limited capabilities, encouraging clients to try the platform before upgrading for advanced functions.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry includes operators that primarily develop independent, third-party software, which enables institutional and retail investors to access, execute and monitor positions in securities markets. It excludes trading platforms developed by exchanges and alternative trading systems. Trading platforms developed internally by institutional investors and financial intermediaries, such as banks and securities broker-dealers, are also excluded from this industry.

What's included in this industry?

Products and services covered in the e-Trading Software Developers industry in the United States include Develop electronic trading software, Develop order management system (OMS) platforms and Develop execution management system (EMS) platforms.

Companies

Companies covered in the e-Trading Software Developers industry in the United States include .

Purchase this report to view all major companies in this industry.

Related Terms

Related terms covered in the e-Trading Software Developers industry in the United States include hedge fund, execution management system (ems), order management system (oms) and interoperability.

Industry Code

NAICS 2017

NAICS 511210 - e-Trading Software Developers in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Off-exchange trading is fueling major upgrades in electronic trading platforms. Developers rush to meet demand for secure, flexible and sophisticated software as institutiona...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Trading platform fees are driving industry growth. E-trading software companies are seeing more users thanks to subscription and “freemium” fee models. As crypto trading volu...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Silicon Valley attracts many software developers. The broader Western region also hosts a significant portion of finance software developers.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each state in 2025
  • Number and share of revenue each state accounts for in 2025
  • Number and share of wages each state accounts for in 2025
  • Number and share of employees in each state in 2025

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Competition has exploded with many brand-new entrants, especially mobile apps. Still, regulators are segmenting the market, pressuring new competitors to compete among themse...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Companies developing trading software are split into two categories based on asset class and regulation. The major players focus on stock and bond trading, while entrants go ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    Fringe e-trading platforms are likely to be regulated more stringently moving forward, giving power to incumbents. Still, a crash in the cyptocurrency market is likely with s...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2015-2030) 
    • Assistance historical data and forecast (2015-2030) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    Profit are narrowing for e-trading software developers as costs rise faster than revenue. The need to invest in technology upgrades, new talent and regulatory compliance is o...

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
    • Investment vs. share of economy

    Data tables

    • Industry Multiples (2018-2023)
    • Industry Tax Structure (2018-2023)
    • Income Statement (2018-2023)
    • Balance Sheet (2018-2023)
    • Liquidity Ratios (2018-2023)
    • Coverage Ratios (2018-2023)
    • Leverage Ratios  (2018-2023)
    • Operating Ratios (2018-2023)
    • Cash Flow & Debt Service Ratios (2015-2030)
    • Revenue per Employee (2015-2030)
    • Revenue per Enterprise (2015-2030)
    • Employees per Establishment (2015-2030)
    • Employees per Enterprise (2015-2030)
    • Average Wage (2015-2030)
    • Wages/Revenue (2015-2030)
    • Establishments per Enterprise (2015-2030)
    • IVA/Revenue (2015-2030)
    • Imports/Demand (2015-2030)
    • Exports/Revenue (2015-2030)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2015-2030)
    • IVA (2015-2030)
    • Establishments (2015-2030)
    • Enterprises (2015-2030)
    • Employment (2015-2030)
    • Exports (2015-2030)
    • Imports (2015-2030)
    • Wages (2015-2030)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the e-Trading Software Developers industry in the United States in 2025?

    The market size of the e-Trading Software Developers industry in the United States is $7.8bn in 2025.

    How many businesses are there in the e-Trading Software Developers industry in the United States in 2025?

    There are 200 businesses in the e-Trading Software Developers industry in the United States, which has grown at a CAGR of 9.0 % between 2020 and 2025.

    How may import tariffs affect the e-Trading Software Developers industry in the United States?

    The e-Trading Software Developers industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

    How may export tariffs affect the e-Trading Software Developers industry in the United States?

    The e-Trading Software Developers industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

    Has the e-Trading Software Developers industry in the United States grown or declined over the past 5 years?

    The market size of the e-Trading Software Developers industry in the United States has been growing at a CAGR of 3.7 % between 2020 and 2025.

    What is the forecast growth of the e-Trading Software Developers industry in the United States over the next 5 years?

    Over the next five years, the e-Trading Software Developers industry in the United States is expected to grow.

    What does the e-Trading Software Developers industry in the United States include?

    Develop electronic trading software and Develop order management system (OMS) platforms are part of the e-Trading Software Developers industry in the United States.

    How competitive is the e-Trading Software Developers industry in the United States?

    The level of competition is high and increasing in the e-Trading Software Developers industry in the United States.

    Methodology

    How are IBISWorld reports created?

    IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

    Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

    IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in the US include: 

    • US Census Bureau
    • US Bureau of Labor Statistics
    • US International Trade Commission

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

    How does IBISWorld forecast its data?

    IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

    IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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