Investments and trading

For firms offering services such as wealth management, corporate finance advising, and digital investment platforms, investment licences provide the essential framework to operate legally and responsibly within financial markets. The most common business models under this license type include:

  • Investment advisory firms
  • Digital investment platforms (e.g., robo-advisors)
  • Wealth management companies
  • Corporate finance advisory services
  • Hedge funds and asset managers

Trends boosting the sector

Technological advancements

The rise of robo-advisors, machine learning, and AI-based analytics is revolutionizing the investment landscape. This has opened the possibility for firms to offer personalised services for their clients and optimised portfolio management, leading to greater efficiency with lower costs.

Regulatory updates

As investment opportunities become more accessible, regulatory bodies are introducing frameworks focused on investor protection, transparency, and cross-border harmonization. These frameworks help safeguard users’ assets and ensure firms adhere to strict standards.

Market drivers

Increased interest in self-directed investing, coupled with a strong demand for digital platforms, is fuelling growth. This surge is driven by a new generation of investors seeking accessible, tech-driven solutions to manage their wealth and participate in the global markets.

Prominent firms have set the standard for licensed investment services

  • Fidelity: A global asset management and financial services provider offering a range of investment solutions. The firm is responsible for $862 billion in total client assets for more than 2 million clients, spanning from the American continent, Middle East to Asia Pacific.
  • Vanguard: Known for its low-cost investment funds and portfolio management services, the company, as of August of 2024, offers 423 funds worldwide. In the same year it reported to have $9.3 trillion assets under its management.
  • Betterment: A digital investment platform that leverages robo-advisor technology to provide personalized investment strategies. As a result, in 2023 Betterment generated $153 million in revenue, a 69% increase from the previous year, and $38.35 billion in assets under management.