Retail Brokers Shift Gears Towards Multi-Asset Trading

Retail brokers are adapting to the changing landscape of financial markets by introducing new roles and products that cater to the growing demand for multi-asset trading. According to Tom Williams, Chief Operating Officer at Australian-based broker Pepperstone, 'the most valuable opportunities no longer live within asset classes, but in the space between them.'

Pepperstone has recently posted a job ad for a Head of Cross-Asset Strategy, a role typically found in investment banking. This move is part of the company's mission to build a fintech ecosystem for its clients, which requires dedicated senior ownership to connect its derivatives, crypto, and future businesses.

The expansion into cross-asset strategy is driven by the need for retail brokers to keep up with the growing competition from crypto giants, which have acquired MiFID licenses to sell derivatives in the EU. Williams notes that 'clients now expect much more than institutional-grade pricing; they want more asset classes, more sophisticated instruments and markets that run 24/7.'

As a result, retail brokers are innovating their products to meet this demand. Some have applied for EMI licenses to bypass traditional banking sector, while others are exploring the development of infrastructure for round-the-clock trading.