EU cross-border investment relationships rise 47%, with five firms serving 70% of clients

Cross-border investment services reached approximately 15.5 million retail clients in the EU and EEA during 2025, up 47% on the previous year, according to ESMA’s report published on 14 October. The number of participating firms increased only modestly, to 379.[1]

France, Spain, Germany and Italy remained the main destinations for the services. Growth came through a provider base that expanded far less than the reported customer total.[1]

The largest firm base and the largest client base differ

Lithuania overtook Cyprus by clients, while Cyprus retained the most firms. The five largest providers served 70% of clients. Execution reached 87% of active clients; those five providers offered no investment advice.[2]

The survey measures relationships, not unique people

Both annual exercises cover passported investment firms and banks serving more than 50 retail clients in a host jurisdiction. Domestic business and branches are excluded. The data cannot remove people counted through multiple accounts or providers, so the total is not a census of distinct European investors.[3][2]

Commercially, the survey measures the reach of overseas distribution. A broker would need funded accounts, assets and revenue on comparable definitions to show how that reach converts into business. Existing investors opening additional relationships can expand distribution without increasing the number of distinct people investing.[3]

Complaint totals need a separate reading

Reported complaints totalled 10,945, against 10,968 in 2024. ESMA cautions that complaint delays and inconsistent interpretations can obscure the relationship with client growth. Its report also says 54% of complaints were not linked to a specific product, limiting product-level conclusions.[2][3]

A larger operating footprint raises the supervision question

ESMA’s separate July follow-up on cross-border supervision found improvements in authorisation controls, use of risk data and cooperation across six authorities. It nevertheless urged supervisors with significant outbound activity to match their oversight to its scale and complexity.[5]

The new figures make the supervision issue tangible: a firm operating from one jurisdiction can serve a substantial customer base elsewhere. With five providers accounting for 70% of reported clients, concentration and the location of customers give supervisors a more useful picture of potential disruption than the number of licensed firms alone. That is an inference from the distribution figures and July findings.[5][1]

ESMA plans its next collection in 2027, providing a further observation of client growth and complaints after the 2025 activity covered here.[1]

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