June 3, 2025 — Estimates about the prevalence of outsourced trading in U.S. equity markets are likely understating actual usage as some buy-side firms do not want their peers to know they are using outsourced providers.
According to data from Crisil Coalition Greenwich, about one in 10 buy-side firms report using outsourced trading for U.S. equities. Many of these users have opted to employ an outsourced provider for all equity trading operations and do not maintain an internal equity trading desk. 
“Traders are becoming more data-driven, experimental and open to new ideas,” says Jesse Forster, Senior Analyst at Crisil Coalition Greenwich Market Structure & Technology and author of Equities outsourced trading is alive and well in 2025. “As the industry evolves, some traders see outsourced trading as a way to supplement core trading functions and free up internal resources.”
Although outsourced trading is becoming more common, many buy-side traders remain resistant to cede control over execution to third-party providers, which they believe will make it harder for them to build relationships with the sell side. As a result, converting prospects into paying clients remains a challenge for outsourced trading providers. 
Nevertheless, outsourced trading providers are optimistic about their prospects, citing a growing willingness among U.S. asset managers to consider external solutions and increased interest from emerging hedge fund managers in Asia.
“As some of the original legacy providers of outsourced trading scale back, new contenders are emerging in the space,” says Jesse Forster. “Successful providers will need to evolve along with the buy side to demonstrate their value and stay competitive.”