The outlook for 2025 across brokers, asset managers, and exchanges is viewed positively, with expectations for a robust performance akin to a third consecutive year of over 20% total returns in U.S. equity markets. The key drivers likely to influence this sector include increased capital markets activities, a potential reduction in regulatory constraints which may encourage product innovation and capital deployment, alongside the possibility of reduced individual and corporate taxes.

In a recent assessment of the financial sector, analysts noted that alternative asset managers are experiencing significant secular tailwinds, with the retail and wealth sectors highlighted as particularly compelling. In contrast, exchanges are viewed as less appealing during positive market conditions, expecting slower growth compared to asset managers and certain brokers. Furthermore, some analysts anticipate that certain Trump policies may benefit energy exchange businesses. As for brokers, they are favored as the top sector moving into 2025 due to factors such as resilient short-term rates enhancing margin lending and other high-margin activities. A financially successful retail customer base may also prolong a more active trading environment. It is also noted that Robinhood has significantly advanced in legitimizing its business operations, moving away from its earlier dependence on meme-stock trading.

Robinhood has evolved from a rapidly expanding, occasionally profitable online broker predominantly serving younger investors to a premier entity in terms of revenue and asset growth and custody compounding, with an expanding total addressable market. Near to medium-term growth is anticipated to be fueled by ongoing wallet share gains among highly-profitable active traders, alongside a long-term potential to broaden Robinhood's market into sectors like wealth management and international markets.