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My European broker can't trade US-ETFs
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European and United Kingdom-based retail investors can only invest in ETFs that conform to specific EU UCITS regulations. This means that US-domiciled ETFs are not available for EU and UK investors to trade via European brokers, as they do not meet the regulatory requirements. To address the difference in regulatory environments, many ETF providers offer EU-domiciled versions of their US-based ETFs.
Why is this?
The EU passed specific MiFiD II regulations in 2014 in order to raise standards and increase transparency in the financial markets. Some of the requirements of this bill, to protect retail investors, ensure that all ETFs much have the following documentation:
- Frequent reporting for additional transparency
