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The global algorithmic trading market exhibited strong growth during 2015-2020. Algorithmic trading, or Algo-trading, is the procedure of using computer programs with a pre-defined set of instructions to administer a trading activity. The instructions are based on prices, timing, quantity and numerous other parameters of a mathematical model. It aims to generate profits, reduce transactional costs and allow investors to take control of the trading process through a computer. Apart from this, algo-trading makes the market more flexible, as well as systematic, by ruling out any human influences. It is also used for high-frequency trading (HFT) that involves placing large trade orders across multiple markets and facilitate prompt decision-making. Looking forward, IMARC Group expects the global algorithmic trading market to grow at a CAGR of around 10% during the forecast period (2021-2026).
Algo-trading enables quick profit generation and an increased frequency, which is practically impossible for any human trader. This benefit of algorithmic trading is the key factor driving the market growth. Enterprises are emphasizing on policies for building low-risk infrastructure and optimizing data management strategies through algorithmic trading. Furthermore, the emergence of Artificial Intelligence (AI) is acting as a major growth-inducing factor for the market. The AI assists in creating efficient trading opportunities through portfolio diversification and the global distribution of savings, along with risk sharing. In addition to this, the rising trend of cloud computing across both the developed and emerging nations is also catalyzing the growth of the market. Vendors offer cloud-based trading options to automate the trading process, reduce operational costs, and provide transactional flexibility to consumers. Dealers are also establishing risk management platforms with the aim to provide market surveillance monitoring and detect fraudulent activities in the automated trading system.
IMARC Group’s latest report provides a deep insight into the global algorithmic trading market covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. This report is a must-read for industry players, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the algorithmic trading market in any manner.
The report has also analyzed the competitive landscape of the market with some of the key players being Vela Trading Technologies LLC, Meta-Quotes Software Corp, Trading Technologies International Inc., Software AG, Algo Trader, uTrade Solutions Private Ltd., Automated Trading SoftTech Pvt. Ltd., Kuberre Systems Inc., InfoReach Inc., Virtu Financial, Tata Consultancy Services, Argo Group, Thomson Reuters, iRageCapital, Moons, etc.
We expect the global algorithmic trading market to exhibit a CAGR of around 10% during 2021-2026.
The growing prominence of high-frequency trading that involves placing large trade orders across multiple markets and facilitate prompt decision-making, is primarily driving the global algorithmic trading market.
The sudden outbreak of the COVID-19 pandemic has led to the rising adoption of algorithmic trading using computer programs with a pre-defined set of instructions to administer a trading activity and allow investors to take control of the trading process remotely through a local device.
Based on the trading type, the global algorithmic trading market can be segmented into Foreign Exchange (FOREX), stock markets, Exchange-Traded Fund (ETF), bonds, cryptocurrencies, and others. Among these, stock markets hold the majority of the total market share.
Based on the components, the global algorithmic trading market has been divided into solutions and services. Currently, solutions exhibit a clear dominance in the market.
Based on the deployment model, the global algorithmic trading market can be categorized into on-premises and cloud, where on-premises model currently accounts for the majority of the global market share.
Based on the organization size, the global algorithmic trading market can be categorized into small and medium enterprises, and large enterprises. Currently, large enterprises represent the largest market share.
On a regional level, the market has been classified into North America, Asia Pacific, Europe, Latin America, and Middle East and Africa, where North America currently dominates the global market.
Some of the major players in the global algorithmic trading market include Vela Trading Technologies LLC, Meta-Quotes Software Corp, Trading Technologies International Inc., Software AG, Algo Trader, uTrade Solutions Private Ltd., Automated Trading SoftTech Pvt. Ltd., Kuberre Systems Inc., InfoReach Inc., Virtu Financial, Tata Consultancy Services, Argo Group, Thomson Reuters, iRageCapital, Moons, etc.
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