The global algorithmic trading market is expected to grow at a CAGR of around 10% during 2019-2024. 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.
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.
Historical, Current and Future Market Trends
Market Breakup by Trading Types:
Foreign Exchange (FOREX)
Exchange-Traded Fund (ETF)
Market Breakup by Components:
Market Breakup by Deployment Model:
Market Breakup by Organization Size:
Small and Medium Enterprises
Market Breakup by Region:
Middle East and Africa
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.
Key questions answered in this report:
How has the global algorithmic trading market performed so far and how will it perform in the coming years?
What are the key regional markets in the global algorithmic trading industry?
What is the breakup of the market based on the trading type?
What is the breakup of the market based on the component?
What is the breakup of the market based on the deployment model?
What is the breakup of the market based on the organization size?
What are the various stages in the value chain of the global algorithmic trading industry?
What are the key driving factors and challenges in the global algorithmic trading industry?
What is the structure of the global algorithmic trading industry and who are the key players?
What is the degree of competition in the global algorithmic trading industry?