With the robust growth in technology in the recent years, digital brokerages have become popular among retail investors with new high tech platforms and software coming up by day.
The best performing digital brokerage platforms today are those that have embraced modern technology in big data analytics, AI, machine learning, and blockchain.
If you are looking to invest in digital brokerage in 2018, here are top 9 platforms we believe will be the best performing. Our choices are based on the platform’s new technology adoption rate, financing, and growth projections.
Founded in 2006, eToro is a social trading and multi-asset brokerage platform that allows users to trade stocks, commodities, currencies, and indices. The platform is among the few in the market that have been using AI, Machine Learning, and recently Blockchain to enhance user experience.
For instance, in 2016, eToro tapped on machine learning to introduce CopyFunds™, a product that bundles together top trades in all asset classes and presents them to investors as a trading strategy. In 2017, the CopyFunds™ have shown strong performance with TrendingR7 account giving a return of nearly 50%.
Since launch eToro has raised over $72.9 million in 7 rounds of funding, lead investors including CommerzVentures Gmbh and Spark Capital. In June 2017, the brokerage announced that it would be introducing a blockchain wallet to allow storage and trading of multiple assets. The innovation is likely to push the platform's growth to new heights in 2018 and beyond.
Motif Investing is a digital brokerage that allows individuals and financial advisors to invest in stock and bond portfolios developed around everyday ideas and economic trends.
The platform was founded in 2010 in Silicon Valley and has since then been on an upward trajectory.
As of November 2017, Motif Investing has raised $126 million in six rounds of funding. The firm’s leading investors include JP Morgan Chase, Goldman Sachs and Renren Inc.
Artivest Holdings is a digital investment platform that connects investors with investment opportunities in hedge funds and private equity.
As of November 2017, the firm has raised $17 million in three rounds of funding. Artivest Holdings principal investors include FinTech Collective, Signatures Capital, KKR & Co, Level VC, PayPal co-founder Peter Thiel, and many others.
In August 2017, Artivest partnered with California-based Investment firm Altegris, on distribution of $1 billion in alternative funds. The partnership is expected to boost growth for the two firms in 2018 and beyond.
Founded in 2014, CoInvestor is a digital investment platform that enables private investors to build their portfolio of direct investments by co-investing alongside professional fund managers on a deal by deal basis.
Since launch, the firm has raised £1.1 million in one round of funding.
Recently, CoInvestor has been chosen by LendInvest Capital as the ideal method for UK advisors to invest in its Real Estate Opportunity Fund.
With the recommendation, the platform’s growth is expected to skyrocket in 2018 and beyond.
Kapitall is a web app that enables investors to quickly research, analyze, and trade stocks, mutual funds, and ETFs. The platform was founded in 2008 by Gaspard de Dreuzy and Serge Kreiker.
As of November 2017, Kapitall has raised $20.3 million in two rounds of funding led by Linden Venture Funds and Bendigo Partners.
In 2018, the brokerage platform growth is expected to skyrocket as big data continues to take a position as the key determinant of competitive advantage.
Fidelity Investments is one of the world largest financial services providers offering investment management, portfolio guidance, retirement planning, and brokerage services.
The platform is among the world best online brokers according to Barron’s 2017 ranking. According to Barrons, Fidelity Investment has excellent mobile trading tools and one of the best customer services available.
In August 2017, the brokerage joined the ongoing crypto craze by introducing a new feature that allows investors to view their bitcoin and other cryptocurrencies holdings on the platform.
Raisin is a digital platform that allows users to invest in saving accounts that offer the best interest rates around the EU.
According to Business Insider, as of August 2017, over 90,000 customers had invested nearly €4 billion through the platform.
Investors are required to open an account on the platform and deposit funds which they can then allocate to saving accounts of partner banks. The platform is in partnership with over 40 banks across Europe.
As of November 2017, Raisin had raised over €57.5 million in three rounds of financing led by Thrive Capital and Index Ventures.
Savedo is a digital investment platform that allows retail investors to access investment products across Europe.
In August 2017, the brokerage platform was acquired by Deposit Solutions, a leading open banking platform for deposits and the owner of investment platform, ZINSPILOT.
According to Finextra, the acquisition has expanded Savedo’s B2C capabilities with an additional 18,000 registered clients, 13 partner banks and two new regions which include Netherlands and Australia.
With over one million investors and over £82 billion in administration, Hargreaves Lansdown is the UK largest digital brokerage platform.
The firm is listed in the LSE and is a constituent of the FTSE 100 index.
The firm is among the leaders in its industry when it comes to leveraging big data, AI and Machine Learning to improve user experience and performance.
In June 2017, Hargreaves Lansdown introduced a new feature on its platform that allows investors to access a fund that tracks bitcoin price.
The forward-looking nature of the brokerage is the reason we believe it will be among the best performers in 2018 and beyond.