In the response, we highlight that, in the face of inflation and over the long-term, investing is better than saving; exchanges educational activities help to increase retail trading; and, retail traders are often more sophisticated than policymakers consider. We then recommend that the EU increase access to research, improve financial education, allow learning by doing, further develop tax incentives for retail, consider opacity of broker intermediary fees and encourage ESMA to gather data on best execution. In the response we utilise the research that we undertook in 2022: Retail trading: an analysis of current trends and drivers.
