Direct Answer
17 SEC filers are classified under the Standard Industrial Classification code that describes the retail brokerages industry, and their latest annual reports show $261.8 billion of combined revenue and a median operating margin of 12.9%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Retail brokerages offer individual investors trading, custody and advice, earning from commissions, payment for order flow, margin interest and net interest on cash. Client assets, trading activity and rates drive revenue. The first numbers to compare across companies here are client assets and net new assets, daily average revenue trades and net interest revenue.
Key Industry Metrics
- Client assets and net new assets: Value of client holdings and new money added less withdrawals. Net new assets show true gathering, apart from market moves.
- Daily average revenue trades: Average number of trades per day that earn revenue. It shows client activity, and rises in volatile or rallying markets.
- Net interest revenue: Interest earned on client cash and margin loans, less interest paid. It rises with rates, but can change as clients move cash.
- Margin balances: Money borrowed by clients to buy securities. It earns interest, and rises with market confidence, but increases risk in declines.
- Funded accounts: Accounts that hold money or assets, rather than just signups. Growth shows client acquisition and is a base for future revenue.
Primary Macro Drivers
- Market activity and sentiment: Trading and investing rise with confidence and price moves, so activity lifts daily average revenue trades and revenue.
- Interest rates on cash: Client cash earns interest for the brokerage, so rate levels and cash balances change net interest revenue.
- Account growth: More funded accounts add assets and activity, shown in client assets and net new assets.
- Regulatory changes on order routing: Rules on how orders are routed and paid for can change income per trade. Watch regulatory proposals and revenue from order flow.
Major Risks
- Lower trading activity: Quiet markets reduce trades and margin lending, so revenue falls while costs remain. Watch daily average revenue trades and margin balances.
- Falling rates reducing interest income: When rates drop, interest on client cash falls without any change in balances. Watch net interest revenue sensitivity.
- Regulatory scrutiny: Changes to order routing, payment for order flow or reporting add cost and could cut revenue. Watch regulatory actions and legal proceedings.
- Outage and cyber risk: Platform outages during heavy trading and breaches cause client losses and fines. Watch uptime, incident disclosures and technology spending.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Low |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Retail Brokerages Filers in the SEC Record
17 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6211. Their latest fiscal years end in 2025, and together they reported $261.8 billion of revenue. Median revenue growth over the prior year was 19.6%. Median operating margin was 12.9% and median net margin 10.2%. Median total liabilities were 81% of total assets, and 14 of 17 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Morgan Stanley | $70.6 billion | 14.4% | n/a | 23.9% | FY 2025 |
| Galaxy Digital Inc. | $60.4 billion | 41.8% | n/a | -0.4% | FY 2025 |
| Goldman Sachs Group Inc | $58.3 billion | 8.9% | n/a | 29.5% | FY 2025 |
| Blackrock, Inc. | $24.2 billion | 89.3% | 29.1% | 22.9% | FY 2025 |
| Raymond James Financial Inc | $15.9 billion | 6.6% | n/a | 13.4% | FY 2025 |
| Jefferies Financial Group Inc. | $10.8 billion | 2.9% | n/a | 6.3% | FY 2025 |
| Stifel Financial Corp | $6.3 billion | 6.7% | n/a | 10.2% | FY 2025 |
| Robinhood Markets, Inc. | $4.5 billion | 51.6% | n/a | 42.1% | FY 2025 |
The 8 largest of 17 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Retail Brokerages guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Retail Brokerages industry?
Key performance indicators for the Retail Brokerages industry include: Client assets and net new assets, Daily average revenue trades, Net interest revenue, Margin balances, Funded accounts. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Retail Brokerages industry?
The Retail Brokerages industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Retail Brokerages industry?
The primary risks for Retail Brokerages companies include: Lower trading activity, Falling rates reducing interest income, Regulatory scrutiny, Outage and cyber risk. Investors should assess each company's exposure to these factors and its track record of navigating them.