Security & Commodity Contracts Brokerage in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: August 2024
SIC K66.120Revenue
£39.6bn
Past 5-Year Growth
Profit
£X.Xbn
Employees
26,614
Businesses
955
Wages
£X.Xbn
Security & Commodity Contracts Brokerage in the UK industry analysis
Volatility in financial markets has been high in recent years, which has, at times, benefitted the brokerage industry through greater trading activity as investors look to capitalise on price swings. Most notably, the COVID-19 pandemic, the Ukraine conflict and aggressive interest hikes from Central Banks facing rampant inflation have incited severe volatility. Revenue is expected to grow at a compound annual rate of 2.7% over the five years through 2023-24 to £38.1 billion, including estimated growth of 3.9% in 2023-24.
Trends and Insights
- Market volatility spurs demand. The COVID-19 pandemic and geopolitical tensions have heightened volatility in equity, bond, and commodity markets, increasing the need for brokerage services.
- Non-financial clients maintain industry demand. Non-financial corporate clients and government clients rely on brokerage services to invest, hedge risks, and manage currencies, while online trading platforms continue to drive demand among retail clients.
- Financial hubs attract brokerage firms. Major banks and investment companies often establish offices in cities with strong financial infrastructure like London, Manchester, and Liverpool.
- Competition is moderate. Brokers compete based upon the level of fees charged, the quality of service provided, the functionality of supporting technological platforms, brand recognition and the specialisation or scope of service offerings.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.5 % over the past five years, to reach an estimated £39.6bn in 2024.
Trends and Insights
The COVID-19 outbreak sparks fierce volatility in commodity markets
- The COVID-19 pandemic hit economic activity globally, catalysing the decline of crude oil prices during 2020-21. The plummeting price of crude oil was driven by a spike in short selling of the asset, which boosted trading volumes and lifted revenue growth in 2020-21.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Interest rates will remain higher for longer as inflation proves sticky
- Markets continue to assume that central banks will cut rates more quickly and steeply than has been publicly signalled. However, inflation has proved sticky, especially in the UK, with inflation rising to an unexpected 4% in December 2023. This suggests rates will remain high, weighing on the stock market in the first half of 2024-25.
Biggest companies in the Security & Commodity Contracts Brokerage in the UK
| Company | Market Share (%)
2024 | Revenue (£m)
2024 |
|---|---|---|
Goldman Sachs International | 6,590.5 | |
Barclays plc | 1,008.9 | |
Citigroup Global Markets Limited | 218.0 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Equities , Interest rate products and Fixed income. Equities is the largest segment of the Security & Commodity Contracts Brokerage in the UK.
Trends and Insights
Equity markets defy expectations in 2023-24
- Brokerage fees from the equities product segment can come from dealing with equity securities, equity derivatives or prime brokerage services.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- There are no industries to display.
International industries
- Global Investment Banking & Brokerage
- Investment Banking & Securities Dealing in the US
- Securities Brokering in the US
- Investment Banking & Securities Intermediation in the US
- Merchant Banking Services in the US
Table of Contents
About this industry
Industry definition
Brokers in the industry deal in financial markets on behalf of others. This includes securities and commodity contracts brokerage, as well as the activities of bureaux de change. Brokers in the industry do not deal in markets on their own account or manage portfolios.
What's included in this industry?
EquitiesFixed incomeInterest rate productsCommoditiesCurrencyCompanies
Goldman Sachs InternationalBarclays plcCitigroup Global Markets LimitedPurchase this report to view all 4 major companies in this industry.
Related Terms
FICC TRADINGRESIDENTIAL MORTGAGE-BACKED SECURITIES (RMBS)CLEARING HOUSE LONDON INTERBANK OFFERED RATE (LIBOR)OVER-THE-COUNTER (OTC)Industry Code
SIC 66.12 - Security & Commodity Contracts Brokerage in the UK
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
Market volatility spurs demand. The COVID-19 pandemic and geopolitical tensions have heightened volatility in equity, bond, and commodity markets, increasing the need for bro...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
Non-financial clients maintain industry demand. Non-financial corporate clients and government clients rely on brokerage services to invest, hedge risks, and manage currencie...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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
Financial hubs attract brokerage firms. Major banks and investment companies often establish offices in cities with strong financial infrastructure like London, Manchester, a...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, 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 is moderate. Brokers compete based upon the level of fees charged, the quality of service provided, the functionality of supporting technological platforms, brand...
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 2019-2024
- 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
COVID-induced market volatility boosts revenue growth. Severe equity price drops and heavy trading volumes in the financial markets due to the pandemic have significantly inc...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Goldman Sachs International's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Barclays plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Citigroup Global Markets Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Goldman Sachs International, and factors influencing its performance in the industry
- Description and key data for Barclays plc, and factors influencing its performance in the industry
- Description and key data for Citigroup Global Markets Limited, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
MiFID II focuses on transparency and investor protection. The enhanced framework demands explicit payments for research to prevent inducements and improve market fairness.
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
Regulations reduce profit and raise compliance costs. Stringent regulatory measures have tightened profit margins while boosting compliance and professional expenses for brok...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
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.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Security & Commodity Contracts Brokerage in the UK industry in United Kingdom in 2024?
The market size of the Security & Commodity Contracts Brokerage in the UK industry in United Kingdom is £39.6bn in 2024.
How many businesses are there in the Security & Commodity Contracts Brokerage in the UK industry in 2024?
There are 955 businesses in the Security & Commodity Contracts Brokerage in the UK industry in United Kingdom, which has grown at a CAGR of 1.1 % between 2019 and 2024.
Has the Security & Commodity Contracts Brokerage in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Security & Commodity Contracts Brokerage in the UK industry in United Kingdom has been growing at a CAGR of 3.5 % between 2019 and 2024.
What is the forecast growth of the Security & Commodity Contracts Brokerage in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Security & Commodity Contracts Brokerage in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Security & Commodity Contracts Brokerage in the UK market in United Kingdom?
The biggest companies operating in the Security & Commodity Contracts Brokerage market in United Kingdom are Goldman Sachs International, Barclays plc and Citigroup Global Markets Limited
What does the Security & Commodity Contracts Brokerage in the UK in United Kingdom include?
Equities and Fixed income are part of the Security & Commodity Contracts Brokerage in the UK industry.
Which companies have the highest market share in the Security & Commodity Contracts Brokerage in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Goldman Sachs International.
How competitive is the Security & Commodity Contracts Brokerage in the UK industry in United Kingdom?
The level of competition is moderate and decreasing in the Security & Commodity Contracts Brokerage in the UK industry in United Kingdom.
