E-Brokers and Digital Capital Markets: Embracing digitization and the ‘democratizing finance for all’ movement

August 2021

Steven Braid, Data and Marketing Analyst

Digitization of consumer industries has captured the imagination, and wallets, of investors over the last few years. Advancements in mobile communications and cloud computing have upgraded the e-commerce, retail, payments, and media content streaming experience, allowing innovative companies to meet the preferences of their consumers and totally transform societal norms.

This technological disruption has also hit the world’s brokerage and capital markets industries, where a generational revolution is brewing — a revolution that is already favoring those companies that have embraced digitization and “democratizing finance for all,” a movement championed by Robinhood Markets, and popularized by other companies, such as Charles Schwabb, FUTU, and Swissquote, just to name a few.

Although this digital transfiguration of the world’s brokerage and capital markets industries is still in the early stages, the momentum generated has already created a massive influx of capital into the sector. This wave of potential opportunities is the result of the convergence of two unique forces — the rising wealth of the younger generations and the shifting of consumer preferences. Additionally, innovative investment products, such as crypto currencies, decentralized finance, thematic investing, ETFs, and robo-advisory services, are pulled investors to transact online.

The product offerings of the companies comprising the BlueStar Global E-Brokers and Digital Capital Market Index index (ticker: BBIDS) are positioned to meet the preferences of the new generations of investors. BBIDS tracks the performance of the largest and most liquid companies in the online securities and lending, market making, and digital asset capital markets industries.

BlueStar Global E-Brokers and Digital Capital Market Index index

31/07/2020-31/07/2021

Source: MV Index Solutions. All values are rebased to 100. Data as of  31 July 2021.


About the Author:

Steven Braid is a Data and Marketing Analyst at MV Index Solutions. He is responsible for supporting the data, marketing, research, and product services. Prior to working for MVIS, Steven worked as an  equity research analyst for Dane Capital Management, a special situations hedge fund, where he focused on SPACs and other forms of special situation transactions. Prior to his time in Finance, he worked as a professional journalist, publishing for the New York Times, USA Today, and other national periodicals. Steven has a M.S. in Data Analytics & Applied Research from the Baruch College Zicklin School of Business, and a BA in International Political Economy from the University of Michigan.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.

« Prev   |   Back to the List   |   Next »
Up