Romania’s market for share brokerage services reached 100 million euros in 2007, according to the findings of a recent analysis of the average commission fess charged and transactions performed on the Bucharest Stock Exchange (BVB) and the Rasdaq OTC electronic exchange.
The increase in 2007 of the market for such brokerage services was 40 percent year on year, with the value of trade in shares on the BVB standing at 5.44 billion euros, up almost 80 percent from the year before, and 120 percent from 2005. Chairman of the Intercapital Invest brokerage company Razvan Pasol told daily Business Standard on April 4 that the present market levels indicate there is still a lot of room for growth.
On the other hand, the value of the brokerage services is likely to drop in 2008, as bourse deals have declined 40 percent in the year to March.
Analysts estimate that the average commission fees charged on transactions conducted by foreign investors was 0.6 percent and the foreign deals recorded on the BVB made up 40 percent of the total trade.
Commission fees on retail stock investments were 0.9 percent of the value, while the same fees charged on small packages of shares, were 8 percent of the value, on the average.
The transactions of small shareholders are estimated to have made up 15 percent of the total trade.
Brokers say average commission fees have decreased by some 0.1 percent a year over the past three years.
"As a result of intensified competition and a large number of brokerage companies, commissions shall decrease even further in the long term," says director of BRD Securities financial services Cornel Fumea.
The busiest brokers in 2007 were the companies working mostly with foreign investment funds, such as KBC Securities, Raiffeisen Capital&Investment, CA IB Securities and ING, which performed some 40 percent of the total 2007 trade.