Should you use a European financial service provider?
Using the Commission’s Action Plan, European consumers have more options and better access to financial services across the EU. Technology is at the core of today’s launch, given that new online services will drive development toward a more integrated financial services sector. A consultation on the influence of technology on the European financial service industry (dubbed “FinTech“) is also being published in this regard in order to further our work in this area.
President Juncker’s Commission has vowed to build a more robust and equitable Single Market, especially through digital means. Competition and choice in financial services imply that customers may enjoy reduced pricing and greater quality, regardless of whether or not they shop for financial services such as bank accounts, vehicle insurance, and money transfers outside of the United States.
Only 7% of customers presently acquire financial services from another EU Member State, therefore this Action Plan aims to break down national barriers. For all EU citizens to have the freedom of choice in financial services and the assurance that they are well-protected, a broad variety of financial services should be provided. The difference between local and international suppliers should no longer be relevant in a truly one market. The EU’s full market should be open to financial service companies as well.
European financial service providers – Benefits
Investing in the Forex market in the European Union is a great way to make money. Trade is safer and more secure when economies are integrated. At the same time, forex trading in such fiercely competitive and powerful markets can be very difficult and dangerous. There will always be unknowns along the way, such as your financial situation, the possibility of fraudsters, and so on.
Traders from all over the world may now effortlessly sign up for European Forex brokerage accounts thanks to the current technological advancements.
Although many best-rated Forex brokers for European traders provide high-quality services, it is crucial to be aware that they may lack transparency and inadequately safeguard client cash. The following factors must be taken into account when trying to determine which European brokers provide the best trading circumstances and the potential for financial gain.
One of the primary advantages of European financial service providers, particularly in terms of Forex trading, is that they provide consumers with more security. Because of the EU’s rigorous rules and regulations, the chances of becoming a victim of fraud when dealing with approved European service providers are nearly nonexistent. European Forex brokers must get licenses from European regulatory bodies such as CySEC, BaFin, FSMA, CNMV, and others.
It is also worth mentioning that European financial service providers provide a diverse selection of trading products to traders. European brokers often provide equities and indices from European markets, exotic currency pairings with fiat currencies of EU nations, and so on, in addition to fundamental instruments.
Another advantage of beginning trading with European Forex brokers is that it provides access to European marketplaces. The finest European Forex brokers provide access to the markets of Germany, Spain, France, Italy, and other European Union nations.
Furthermore, trading with European service providers allows investors to get the greatest services. In the EU, there is a lot of rivalry among brokers, so everyone attempts to give the best conditions: advantageous fees, more trading instruments, extra alternatives, and so on.
FinTech’s rapid growth opens up new possibilities for consumers and businesses alike. Access to financial services throughout the Single Market could be upgraded, national obstacles could be removed, and efficiency could be improved.
The European Commission plans to concentrate on three basic principles in order to allow the European FinTech industry to operate freely throughout the EU and remain competitive. To guarantee innovation and a fair playing field, all items and services, regardless of how they were previously sold (such as via brick-and-mortar locations), should be subject to the same laws as those offered online. Second, proportionality is necessary to ensure that the rules are applicable to a wide range of company formats, sizes, and activities. Lastly, a higher level of trustworthiness is needed to provide customers peace of mind that their personal information is safe and secure.
Consumer financial services in the EU have previously undergone a number of reforms. These include the Payment Accounts Directive, which makes it simpler to move banks and enhances the transparency of bank account fees, as well as the Digital Single Market Strategy of the European Commission, which aims to increase access to digital goods and services for everyone. The European Commission’s Action Plan on Building a Capital Markets Union said that the EU’s capital markets would be strengthened and that retail investment products would be more widely available.
December 2015 saw the introduction of a Green Paper on Consumer Financial Services by the European Commission. Consumer financial services such as insurance, mortgages, loans, payments, and bank accounts were examined throughout Europe as part of the study. For further data on the consumer financial services industry, a Special Eurobarometer poll was released simultaneously.
With 428 submissions from various stakeholders (consumers, consumer organizations, the financial services sector, and competent authorities), the Green Paper made it apparent that constraints to the Single Market’s smooth operation hurt both consumers and providers.