The number of registered stock brokers in Romania has dropped to 238, three times lower than in 2010, according to data from the Financial Supervisory Authority (ASF), cited by local Ziarul Financiar.

The stock brokers provide financial intermediation services. They take trading orders from clients and execute them while also providing some investment consultancy services.

The drop in the number of brokers is mainly due to online trading. Most investors now prefer to use online trading platforms, which are faster and more easily to control. Meanwhile, traditional brokerage services are a thing of the past.

The low number of individual investors trading stocks on the Bucharest Stock Exchange is another explanation for the low number of brokers. Many local brokerage firms have closed or have gone bankrupt while others have been absorbed by competitors after the 2008 financial crisis.

editor@romania-insider.com