EU to Ban Digital Brokers with Zero-Commission Trading
The European Union plans to implement a general ban on payment for order flow, which is related to a zero-commission trading practice done by digital brokers, Bloomberg News reported.
The move could impact some Nigerian fintech companies offering digital trading in order to attract customers into their space. Transaction costs for trading foreign stocks compete favourably with local rates, according to brokers
The practice allows brokers to offer transactions without commission by receiving a fee for forwarding clients’ orders to bigger trading platforms, the news agency added.
The proposal is part of a wider package of reforms covered by the provisional agreement that EU member states and the European Parliament struck on Thursday.
The European Council also said investment firms could be exempted from the ban under certain conditions until mid-2026. #EU to Ban Digital Brokers with Zero-Commission Trading Nigerian Treasury Bills Yield Rises to 7%
