On 12 March 2025, the International Organisation of Securities Commissions (IOSCO) issued a consultation report on neo-brokers.

Neo-brokers are a subset of brokers, characterized by providing online-only investment services and by the absence of physical operating branches, thereby using technology to facilitate those services and access to financial markets. Neo-brokers have very limited or no human interaction with retail investors who use their services. Their selling point is immediate and user-friendly, mostly with access via mobile apps and websites, often advertised as providing no or low-commission trading.

The consultation report sets out IOSCO’s understanding of the business model developed by neo-brokers and the potential issues that may arise because of the activities of these neo-brokers. The report then sets out a list of potential recommendations provided as guidance.

Next steps

The deadline for comments on the consultation report is 12 May 2025.