The TRADE predictions series 2026: Retail, retail, retail 

Industry experts from Cboe Global Markets, XTX Markets, and The Broker Club share insights on the retail scene over the coming year, as firms across Europe, in particular, increase efforts to drive retail investing and keep up with the US.  

By Editors

Alex Dalley, head of European cash equities, Cboe Global Markets  

Encouraging retail participation will once again be a defining theme of Europe’s equity markets in 2026, as regulators, exchanges, and brokers intensify efforts to make trading more accessible, cost-efficient, and engaging for individual investors. 

Historically, retail participation in European markets has lagged behind the US, constrained by cultural attitudes and regulatory complexity. That dynamic has begun to shift with the rise in Europe of neo-brokers – many of whom helped drive the US retail revolution – and the launch of retail focused initiatives by exchanges. Policymakers are also advancing measures to broaden access and improve investor outcomes.   

A landmark change will arrive in June 2026 with the EU-wide ban on payment for order flow. We think this will be a positive step for investors, encouraging greater execution of retail order flow directly on multilateral trading venues.   

Structural reforms will also be critical. The EU’s Market Integration and Supervision Package, set for finalisation in 2026, represents a pivotal opportunity to strengthen competitiveness, ensure a level playing field between venues, and modernise post-trade infrastructure. 

Key priorities include maintaining innovation and competition between bilateral and multilateral venues, and extending interoperability in equities clearing across all European cash markets.  

Matt Clarke, head of distribution and liquidity management, US, XTX Markets 

Estimates suggest that retail investors now make upapproximately 30% of daily US equity trading volume. Yet the buy-side has long struggled to interact with this flow directly, as most retail orders were traditionally routed to off-exchange wholesalers. That landscape is beginning to shift.   

Increasingly more retail brokers are now seeking to trade at the midpoint on ATS “one-to-many” hosted rooms before sending orders to wholesalers. Several forward-thinking brokers are connecting to these rooms and resting conditional midpoint interest on behalf of their clients.   

Both sides may benefit. Institutions gain access to a large pool of high-quality, often uncorrelated retail liquidity. Retail brokers receive additional midpoint price improvement from institutional investors with longer time horizons and diverse investment styles.   

I expect more firms to experiment with this model in 2026.  

Gavin Williamson, chief executive, The Broker Club  

As part of its growth strategy, the Financial Conduct Authority (FCA) has looked at transparency and investor protection, whilst deciding if the risk warnings could be more appropriate. 

Exchanges have introduced zero-commission trading and fractional shares, making investing more accessible and attracting a broader audience. Investor education and financial literacy emerged as central themes, with the view that schools, employers, and financial institutions should all be involved.    

The FCA is looking to embed educational tools within trading apps. When asked whether brokers should educate investors on products, the consensus was that they should provide some guidance, but it is not their responsibility to fully educate.   

During 2026, we expect to see a continuation of new listing rules to make London more IPO friendly, additional PISCES venues, and a liquidity programme for small/mid-cap equities, plusmarket-maker incentives. 

There will remain a focuson UK retail investing with a rebuilding of confidence in domestic markets and strengthening education.  

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