European equity commission spending increased 15% year over year to $2.65 billion as turnover rose, the highest level since the 2021 bull market. The United Kingdom remains the dominant market, capturing 60% of these commissions, although flow and attention are gradually shifting.
Buy-side traders we spoke with suggest the risk-reward profile of the Eurozone is improving, and they expect flow to continue tilting toward continental Europe, which has been outperforming both the U.K. (and, in periods, the United States), while offering broader diversification. They’re not making Europe their only bet—this is not a rotation trade—they just plan on being less underweight than they have been.
The mood entering into early 2026 is cautiously optimistic. Asset managers are adapting to a new normal, investing in workflow technology to streamline operations and boost efficiency both on and off the trading desk. While concerns about liquidity and fee compression persist, these are widely viewed as manageable. Traders are focusing on incremental gains, largely around automation, rather than big-bang changes.
Brokers, meanwhile, are doubling down on customer service and trading technology, upgrading their algorithmic and analytics offerings to stay competitive. They are also deepening relationships with core clients, pairing bespoke, configurable solutions with high-touch service. The 80/20 rule remains intact, and the majority of commissions continue to concentrate among a small set of primary counterparties. Fintech vendors are also busy, as both the buy side and sell side push to modernize execution management, transaction cost analysis (TCA), surveillance, and compliance tooling.
Yet, despite the optimism, a healthy dose of caution remains. European market participants are less bullish than their U.S. counterparts. “Energy is running out,” one quipped. Hurdles persist, including the “regulatory malarkey” that continues to mire U.K. and Continental markets.
Considering all this, how can providers forge deeper, more genuine client connections in a market that demands both innovation and trust? Perhaps it’s simple. As one buy-side trader said, “It’s communication. It’s people picking up the phone and talking to us.”
MethodologyFrom January through June 2025, Coalition Greenwich interviewed 127 buy-side equity traders across continental Europe and the United Kingdom. The study was conducted over the phone, online and in-person. Respondents answered a series of qualitative and quantitative questions about the brokers they use and their business practices in the European cash equity space.