Euronext has reached an agreement with online broker Degiro on its retail investor activities in Amsterdam in a move to improve its communication with this audience.
Degiro, a member of the Euronext cash and derivatives markets, will be the first online broker to distribute a range of Euronext’s retail services, including its range of structured solutions and exchange-traded products (ETPs), via its direct channel to its client base to ensure more effective communication with the end investor.
Adam Rose, head of financial derivatives at Euronext, said the partnership will ensure a smoother flow of information and services to retail investors and increase their engagement with Euronext’s markets and products.
“Providing information efficiently to our retail investors is extremely important,” said Rose. “As an exchange, Euronext always has an inevitable indirect relationship with retail investors. An online broker like Degiro is better equipped to approach the end-investor with relevant content regarding our markets because of its direct client relationships.”
Gijs Nagel, director of Degiro's retail operations, said that the agreement on facilitating access for retail investors to Euronext’s markets and products fits “perfectly” in the firm’s European expansion strategy.
“As the fastest growing online broker in Europe, we are well equipped to serve as first point of contact for retail investors,” said Nagel. “Degiro offers investors access to leading exchanges around the world.”
Nagel said that because of Degiro’s broad presence, the firm can assist clients with questions regarding trading on almost all local and foreign exchanges with no exclusive ties to any exchange.
“We choose the market where the investor has the highest chance of getting their order executed,” added Nagel. “For the Netherlands, Belgium, France and Portuguese equities and derivatives, this is Euronext.”
Euronext Amsterdam said that a large number of retail investors are active traders in a wide variety of structured products, and that it will continue to create content for this important audience but will market this directly to financial advisers and brokers such as Degiro who have the end relationship with the retail investors rather than communicating directly with them.
According to Euronext, retail brokers are naturally better positioned to assess product suitability and the level of information required to make an investment decision.
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