Who really benefits from the reduction in brokerage fees?

According to the AMF, the decline in management and transaction fees in the financial markets benefits only a minority of investors. 

Although the annual fees for publicly offered funds fell last year, as did brokerage fees, these reductions affect only a limited number of investors.

Brokerage fees have decreased due to several banks aligning their securities account fees with those of stock savings plans (PEA), as well as growing competition from neobrokers in France. However, annual fees for investment funds vary considerably depending on the asset class. Index equity funds saw the sharpest decline, while fees for actively managed equity funds fell to a lesser extent.

However, this reduction in fees applies only to funds accessible to individual investors through a securities account or a PEA, which account for just one-third of all available funds. Funds integrated into life insurance policies and insurance-based retirement savings plans (PERs)—which account for the majority of savings invested in funds—have much higher management fees. In addition, fees for money market funds in securities accounts and PEAs have risen in recent years, from 0.14% in 2021 to 0.20% in 2023.

In conclusion, the decline in management and transaction fees in the financial markets is good news for investors, but it benefits only a minority of them. Fees vary considerably depending on the asset class and type of fund, and investors need to be aware of the costs associated with their investments.