The following is a guest editorial courtesy of Luis Raposo Dos Santos, Sales Director for Latin America at Finalto, an innovative prime brokerage that provides bespoke liquidity and fintech solutions. Finalto delivers best-in-class pricing, execution and prime broker solutions across multiple assets, including CFDs on Equities, Indices, Commodities, Cryptos and rolling spot FX, Precious and Base Metals, and bespoke products such as NDFs.
You’ve seen them all over your social media feed: charismatic personalities promising untold wealth if you follow their secret trading strategies. Sign up for their masterclass, and you too could be driving a Lamborghini while working just two hours a day.
Of course, many social media accounts offer sensible, accurate financial information. But the rise of the ‘finfluencer’ has raised enough concern that regulators are starting to take action.
Last month, nine financial regulators from around the world (Australia, Canada, Hong Kong, Italy, United Arab Emirates and United Kingdom) joined forces to participate in a ‘global week of action against unlawful finfluencers’. In the United Kingdom alone, according to the UK Financial Conduct Authority (FCA), concrete action was taken, including three arrests and seven cease and desist letters sent.
Two things are clear: the intent is serious, and the scope is global. Regulators around the world are moving to make rules more precise and relevant to modern realities. And they’re increasingly committed to enforcement.
As the sector grows increasingly regulated and competitive, I’ve been reflecting on the role liquidity providers (LPs) can play, working with brokers, proprietary trading firms, and other businesses to help them gain a competitive edge.
Regulation is a sign of industry maturity
Regulation remains uneven, but the global trend is clear. During a recent visit to Chile, many businesses I met with spoke of the pending regulations targeting finfluencers. In South Africa, regulators have issued guidelines on financial education, while in India, authorities have taken steps to control finfluencers.
The global push by regulators to update rules isn’t just a reaction to a few reckless finfluencers. It reflects a broader recognition that more people are engaging with financial markets, and that we need a framework to ensure this growing sector remains credible, transparent, and well-functioning.
In this environment, investors will increasingly seek value from their brokers. Competitive pricing and reliable trade execution may often count more than branding.
LPs can play a key role in helping brokers meet these demands. Those that offer customised pricing and tailored liquidity solutions, based on the evolving needs of brokers, prop firms, and other market businesses, will be better positioned to support growth in a tight regulatory landscape.
The power of choice
In a mature market, investor value choice and flexibility. LPs that offer a truly multi-asset solution are well-positioned to help brokers become more resilient and competitive.
A multi-asset offering supports brokers in multiple ways. It allows them to provide existing clients with more choice, attract new customer segments, and adapt their strategies to evolving market demands.
By offering access to a broader range of asset classes, brokers can stay competitive, keep investors more engaged, and expand their business strategies.
No such thing as one-size-fits-all
One lesson I’ve taken to heart over the years is that every business has unique needs. This is where long-term partnerships truly matter. By working closely together, LPs can deliver tailored solutions that align with a broker’s trading patterns and evolving business model, while also offering dedicated, responsive service that goes beyond standard offerings.
This approach isn’t just about short-term commercial advantage. It enables long-term resilience, helping brokers navigate market shifts, scale efficiently, and stand out in a competitive landscape. In a fast-changing industry, strategic collaboration is often what distinguishes long-term growth from short-lived success.
How LPs Help Brokers Build Credibility
Ultimately, credibility is not just a legal and compliance issue. It’s a market imperative.
While we do not directly engage with finfluencers, the consistency and reliability of the services we provide, coupled with the regulatory frameworks we operate within, help brokers offer more credible, compliant, and trustworthy services to their end clients.
In a landscape where misinformation and unethical practices can spread rapidly, regulated, and well-supported brokers can act as a stabilising force in the market. LPs that offer customised pricing and tailored liquidity solutions, based on the evolving needs of brokers, prop firms, and other market businesses, will be better positioned to support growth in a tight regulatory landscape.
