Leading global PE fund mapped Australia’s digital brokerage, with equities forming 95% of revenue

Context:

• A global private equity fund wanted to understand Australia’s digital brokerage market by various instruments traded, leading brokerage players, emerging challengers, and customer behavior.

Our approach:

• Defined the Australian brokerage market landscape and estimated its market size considering each major traded instrument.
• Conducted expert calls with industry leaders and drove a survey of digital brokerage customers (N=755) to understand market behavior, its growth, challenges, and potential.

Praxis value delivered:

• Estimated revenue pool of Australian brokerage market with domestic equities comprising 95% of the pool and CommSec holding 33% of the market share.
• While online brokerage players charge 0.1-2% of the ticket size as commissions, challenger platforms are offering no cost on buy transactions and up to AUD 5 per sell transaction to make inroads into the market and gain share.
• Challengers like eToro and Superhero have made headway by offering products such as equities and ETFs; further, eToro and Stake offer only US-listed securities currently.