Broker Cluj, one of the largest retail brokerage companies on BVB, decided to reduce commissions for intermediation by 10 percent, while KD Capital Management announced it will cut commissions by 13-17 percent. The company made a decision to reduce transaction commissions for its Private Wealth Management product by 14 percent.
Other brokerage companies could follow suit, as their representatives believe that Romania is the most expensive country in the region. “We reduce commissions every year, depending on demand and client needs, and do not wait for a signal from BVB to do so,” said Razvan Pasol, President of Intercapital Invest.
The General Manager of Estinvest, Lucian Ovidiu Isac, also said that his company has cut commissions due to competitiveness. On the other hand, several brokers indicated that cutting commissions is not necessarily a good move. “If we reduce commissions, the quality of service drops. Romania is the most expensive market, but I do not think that brokers are the problem. As profit margins go down, services weaken,” said Rares Nilas, General Manager of BT Securities.
