Some 70 brokers operate on BVB, of which the top 10 have a 60 percent market share. In January and February, more than 25 companies brokered deals below €700,000. Based on an average 1 percent brokerage fee, the revenues from transactions worth €700,000 amount to €3,000 per month. However, among the 25 firms, some brokered even lower deals, earning only several tens of euro from trading fees. As opposed to previous years, when brokers made deals for themselves with listed stock, the only revenues for brokerage companies are presently trading fees.
Due to the financial crisis, the shares of listed companies have lately registered a significant decline, with up to 45 percent for some of them. Furthermore, the value of stock deals on BVB plunged to a daily €1-2 million, so some brokers cannot even cover their expenses. Some brokerage firms have already ceased operations or are considering closing down, so further small companies in the field are likely to disappear. “The solution for small companies to survive is to merge,” according to Vasile Ortan, General Manager of Valahia Capital broker. The company’s monthly revenue from trading fees amounts to €547.
