Andrea Alms Video: Money In Motion 46 - A Deep Dive Into The Algorithmic Trading Market
March 2023 - Venture Capital
TRANSCRIPT: Hello, my name is Andrea Alms and I'm a technology investor, financial manager. And this is your money in motion. Let's deep dive into the lucrative algorithmic trading strategies. On the last episode, we looked at the top ten use cases of artificial intelligence. Algorithmic trading took top spot, averaging the report's best guess on the market size In 2021, about $13 billion at the average growth rate of 10%.
The global algorithmic trading market is segmented on the basis of trading type, component and geography based on trading type. The market is bifurcated into foreign exchange, stock market exchange traded funds, ETFs, bonds, cryptocurrency and others. The Exchange traded Fund segment expected significant growth owing to the proving low average cost to traders so that they can gain maximum profits out of the ETFs based on components.
The market is bifurcated into solutions and services. The solution segment attributed to the highest growth in algorithmic trading. The growth of the market is attributed to factors such as reduced transaction costs due to the lack of human intervention and instant accurate trade order placement. Also, the market players are introducing advanced algorithmic solutions to serve various needs of their clients.
However, the the service segment is also expected significant growth owing to the wide adoption of professional services among end users, as it ensures the effective and smooth functioning of the algorithmic trading solutions and the market concentration map. Due to numerous market players worldwide such as virtu, finance, algo traders, medical software, Refinitiv the global algorithmic trading industry is moderately fragmented.
These key firms primarily focus on innovative solutions, successful marketing plans to maintain growth and market share. For example, in May 2020 to Plate TENAX secured 5 million in funding to help boost the success of its algo trading software. Cortex Algo is an AI based low latency software developed by Platon X Trade Technology. A prop desk management trading software development company proved to be a one stop solution for virtual digital assets ecosystem.
There are other examples of this fast growing multibillion dollar market. Thank you. This is your money, your money in motion.