Futures Trading Service Market Size, Share, Growth, and Industry Analysis By Type (Software-based Futures Trading, Web-based Futures Trading, and Others), By Application (Share Price Index Futures, Commodity Futures, and Others), Regional Insights and Forecast From 2025 To 2033

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FUTURES TRADING SERVICE MARKET OVERVIEW

The futures trading service market stood at USD 4.32 billion in 2024 and is projected to expand to USD 4.67 billion in 2025, eventually reaching USD 8.64 billion by 2033, driven by a CAGR of 8% from 2025 to 2033.

Futures trading is a sort of derivatives trading that is used to hedge or profit from price fluctuations in assets such as stocks, commodities (such as oil, agricultural commodities, and metals), currency, and indices. Buyers and sellers establish the future price of an asset and engage into a contract with a predetermined execution date for the deal. This is reflected in the Futures Contract. The contracts include defined criteria such as market lot, expiry day, price, and manner of settlement. During this time, the price of an asset fluctuates due to a variety of reasons such as its demand and supply, inflation, and the overall health of the economy.

KEY FINDINGS

COVID-19 IMPACT

The Pandemic Downgraded the Market Growth Gradually

The global COVID-19 pandemic has been unprecedented and staggering, with the futures trading service market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 epidemic has had a catastrophic impact on economies and communities around the world, with the OECD projecting a fall in global GDP and a contraction in global commerce by 2020. In the face of such bleak economic forecasts, governments are under pressure to mobilise resources and adopt measures that would mitigate, if not eliminate, the economic impact of the epidemic.

LATEST TRENDS

The Leveraging Feature to Advance the Market Share

Because most contracts expire in a relatively short period of time, traders are often only permitted to place a marginal part of the negotiated value for a futures contract. This means that, in addition to the leverage provided by their broker, futures traders have access to a large level of leverage through their futures exchange. As a result, futures trading allows you to make highly leveraged bets on a wide range of potentially risky assets. Only options contract traders face greater potential for gains and losses than futures trading.While leverage is neither intrinsically good nor negative, it can be a double-edged sword in that it allows you to achieve outsized gains while also allowing you to lose more than your account is worth. When trading futures, you must be very defensive of your positions and keep strong stops in place at all times.

• In 2024, over 17 million new retail futures trading accounts were registered globally, with Asia-Pacific contributing more than 45% of the total.

• By the end of 2023, automated algorithmic futures trading accounted for nearly 52% of total trades executed on major commodity exchanges.

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FUTURES TRADING SERVICE MARKET SEGMENTATION

By Type

Based on type, the futures trading service market is subdivided into software-based futures trading, web-based futures trading and others.

The type software-based futures trading is the leading part of the type segment.

By Application

Based on the applications, the futures trading service market is subdivided into share price index futures, commodity futures and others.

The type share price index futures is the leading part of the application segment.

DRIVING FACTORS

The Futures Contracts Helping Traders and People to Amplify the Market Share

A futures trading service contract is an agreement between a buyer and a seller to exchange a given amount of a good, usually of a specific grade or quality level, for a specific price and on a specific date.

You can trade futures contracts on any standardised exchange from the comfort of your own home. Each contract includes critical information such as a unit of measurement for the commodities and the amount of goods. The currency in which such contract will be exercised, an expiration date, and the strike price (or price of said products). To get started, simply open an account with a brokerage that supports the market in which you wish to invest. However, many futures contracts now include a 'cash settlement' option, which allows the buyer of the futures contract to settle the contract based on the cash difference between the agreed price of the underlying good and its market value at the time of expiration.

The Dynamic Benefits of the Future Trading to Attract the Market Share

The trading of a large variety of diverse commodities and items is now dominated by futures trading services, which once only covered a few obscure agricultural products. Even futures representing abstract concepts like volatility are among the most popularly traded instruments on the market.

The initial purpose of futures trading services was to enable buyers and sellers of raw commodities to fix prices in order to stabilise their costs and profits. Yet today, all types of investors use futures for speculation and hedging without having to worry about owning the actual underlying asset. The fact that futures do not face time decay like options despite being assets with an expiration date is one of the best aspects about trading futures. That is a major benefit since with options, even if you are correct about the direction, time decay could cause you to miss out on gains.

• In 2023, over 68% of millennial investors in North America preferred futures contracts for commodities like crude oil and wheat due to real-time leverage control.

• Around 30 national stock exchanges introduced simplified futures onboarding tools by 2024, increasing individual participation by over 40% in emerging markets.

RESTRAINING FACTORS

The Liquidity, Counterparty, Regulatory Risks to Restrain the Market Growth

Although futures trading services might offer fantastic investment opportunities, they also come with significant hazards. Futures trading has the drawback that it is more complicated than other methods and that it is simple to commit frequent investing errors. Leverage puts traders at danger of losing more money than the initial margin since, while gains are multiplied, losses are also. By using futures contracts to lock in current prices, hedgers risk missing out on price declines. When one of the two parties to an agreement is unwilling to fulfil their end of the bargain, there is a risk of default or counterparty risk. However the risks associated can restrain the futures trading service market growth.

• As of 2023, nearly 33% of retail traders reported losses due to limited understanding of margin requirements and contract expiry in futures trading.

• In a 2024 investor survey, about 29% of respondents cited high volatility in commodity futures as a barrier to long-term participation.

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FUTURES TRADING SERVICE MARKET REGIONAL INSIGHTS

North American Region to Lead  With Presence of Large Number of Consumers and Major Key Players

Over the projected period, the North American futures trading service market share is expected to expand rapidly, particularly in the growing nations like U.S.A.The futures trading service market is dominated by North America, which commands the largest market share. The selection rate for technologies like cloud, IoT, mobility, big data, analytics, and digital transformation is especially notable among North American consumers.

KEY INDUSTRY PLAYERS

The Prominent Players Contributing in the Market Growth

The international, regional, and local players in the future trading service market are well-diversified and the market is moderately competitive. Companies are discovered making investments in cutting-edge technology to provide their clients a digital monetary transformation.

• Daniels Trading: As of 2023, Daniels Trading managed over 9,000 active futures accounts and facilitated more than 1.6 million contracts across agriculture and energy segments.

• Saxo: In 2024, Saxo enabled futures trading in over 23 global exchanges, supporting more than 20 asset classes through its digital trading platforms.

List of Top Futures Trading Service Companies

• Daniels Trading (U.S.A)
• Saxo (Denmark)
• Tradovate (U.S.A)
• NinjaTrader (U.S.A)
• AGT Futures (U.S.A)
• CQG (U.S.A)
• Gain Capital Group (U.S.A)
• ABLWSYS (U.S.A)
• SmartQuant (Russia)
• E-Futures (U.S.A)
• TransAct Futures (U.S.A)
• Trade Navigator (U.S.A)
• MultiCharts (U.S.A).

REPORT COVERAGE

The report examines elements affecting the demand and supply sides and estimates dynamic market forces for the forecast period. The report offers drivers, restraints, and future trends. After evaluating governmental, financial, and technical market factors, the report provides exhaustive PEST and SWOT analysis for regions. The research is subject to alteration if the key players and probable analysis of market dynamics change. The information is an approximate estimate of the factors mentioned, taken into consideration after thorough research.