Market Spotlight: Volatility seen boosting retail brokers

"Historically the short-term boost comes as customers tend to want to turn over their portfolios to safer stocks," said Patrick O'Shaughnessy, an analyst with Raymond James and Associates. Once that move is made, volume usually declines as customers become more conservative, he added.

If consumer confidence continues to dip due to recession fears and continued market volatility, O'Shaughnessy said trading volume declines will likely become noticeable within three months.

Aside from moving to safer stocks that would be held for longer terms, customers could also move into cash positions, Snowling said. Cash positions in accounts provide narrower profit margins for brokerages than margins on trading fees, further cutting into profits, he added.