No-Fee Brokers Reviewed by EU For Possible Conflicts of Interest
- Officials weighing whether practice is in line with MiFID II
- EU’s McGuinness comments in letter seen by Bloomberg
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Zero-commission stock brokers are coming under increased scrutiny in the European Union as officials suspect their business model might run counter to the bloc’s market regulations.
Services including Etoro Europe Ltd. and Trade Republic Bank GmbH have sprung up to offer European investors cheap ways to trade. While they’re smaller than their U.S. counterparts such as Robinhood Markets Inc., regulators say they could grow rapidly and are used mostly by investors under the age of 30 on smartphones.