The retail forex and CFD brokerage sector is facing competition from neo-brokers, crypto brokers, and fintech apps. Coinbase, Robinhood, Crypto.com, Revolut, PayPal, and Trade Republic have expanded geographically and obtained regulatory licenses to offer a wider range of products and attract more clients. Neo brokers and fintech apps have begun offering investment products, including equities and crypto, posing a threat to traditional FX/CFD brokers. To compete effectively, FX/CFD brokers need to adopt a multi-pronged strategy and embrace innovation. Despite the challenges, there is still an opportunity for brokers to capture a share of the growing retail investment market by adapting to the changing landscape.
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