Investment Firms
Investment firms in Luxembourg play a pivotal role in the country’s vibrant financial centre. Operating under MiFID II regulations, these firms provide a wide range of services to both professional and retail clients, contributing to the depth and diversity of Luxembourg’s capital markets.
A Broad Spectrum of Investment Services
Luxembourg-based investment firms offer essential financial services, including:
- Portfolio management.
- Investment advice.
- Order reception and transmission.
- Proprietary trading.
- Underwriting and placement of financial instruments.
While distinct from banks and fund managers, these firms often work alongside them in the capital markets value chain, serving overlapping client segments with tailored solutions.
A Diverse and Evolving Market Landscape
The investment firm ecosystem in Luxembourg is both dynamic and adaptable, encompassing a wide range of business models:
Full-Service Investment Firms
- Offer a comprehensive range of MiFID services to institutional and retail clients.
- Often affiliated with banking groups, private banks, or wealth management platforms.
Cross-Border Passporting Firms
- Use Luxembourg as a MiFID-compliant gateway to the European Economic Area (EEA).
- A preferred base for UK-based firms post-Brexit seeking to retain EU market access.
Boutique Advisory & Discretionary Managers
- Focus on specialised portfolio and investment advisory services.
- Typically serve HNWIs, family offices, and corporate treasuries.
Execution-Only and Trading Platforms
- Deliver order execution, routing, and proprietary trading services.
- Include electronic trading platforms, algorithmic traders, and niche players in FX and derivatives.
Positioned for the Future
As a well-regulated, forward-looking financial hub, Luxembourg continues to attract investment firms seeking to expand their European and global reach. The country offers:
- Full EU passporting rights.
- A stable and transparent legal environment.
- Access to a multilingual and internationally experienced talent pool.
- Synergies with private banking, fund administration, and wealth management industries.
In a fast-changing world driven by digital innovation, regulatory complexity, and sustainability, Luxembourg’s investment firms are ideally placed to meet the expectations of a globally mobile, compliance-conscious, and tech-savvy client base.
