IOSCO highlights conflicts of interest as key risk for online brokers

The consultation report also draws attention to increased trading frequency as well as potentially opaque fee structures.

IOSCO’s report is entitled “Neo-brokers” and defines this subset of brokers as “characterised by providing online-only execution services and by the absence of physical operating branches.” These firms use technology to facilitate services and provide access to financial markets and tend to be “limited to providing only execution services,

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