The new ESMA landscape

Introduced in 2018, the changes brought forward by the European Securities and Market Authority (ESMA) sparked major waves in how European online brokers conduct business. This regulatory update was focused on improving the odds traders faced while participating in the financial markets and lower the number of those losing money on their trades through increased transparency, and improved communication and education.

Although ESMA was focused on the long-term sustainability of the retail online trading industry, its guidance created various immediate challenges for FX and CFD brokerages... Primarily, a decrease in trading volume and profit margins. Partnered with the increase in restrictions on advertising and communications introduced by GDPR, brokers across the EU were forced to explore new ways to attract, build, and communicate with their customers, while maintaining a profitable bottom line.
Throughout 2019 the true impact of these challenges was felt. A few key changes witnessed within Europe’s investment space included broker consolidation, multi-asset diversification and the closure of several smaller businesses.

Serving over 250 online brokerage customers in over 45 different countries, Multi-Stock Trading LLC enjoys a unique perspective on the industry as a whole. We thought we’d kick off the new year with a look at the key trends emerging across both Europe and the globe, and how these might bring forth positive trader experiences in a continuously evolving regulatory landscape...

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