Image Credit – financefeeds.com
The perception of the retail brokers with regulators can be changed with proper Zero-commission and spreads inflation. A small drive in the Zero-commission Stock trading world was taken up briefing the different types of brokers offer in the market. We explained how this product is a stepping stone for a new business opportunity in Europe.
This trend skipped Europe while the US stock market saw a huge growth in retail investors partially due to Robin Hood. A complicated market structure and lack of enough innovative market players left the market untapped.
This has changed by the entry of companies like BUX and Freetrade. These two companies are taking a lead but other players are also preparing to compete for this profitable market to the knowledge of Finance Magnates.
Existing Retail brokers now have a relief as they get an opportunity to redeem the reputation of the industry as since the past years they have suffered a lot due to bad actors.
Last years new ESMA regulatory framework was a result of the companies that failed to understand the intensity of the negative impact of chasing retail clients for negative balance.
The industry faces a major issue to convey the message of stability and synergy with the clients as the firms are adapting to a new market environment.