How can local elections be made more competitive?

I commented couple days ago about how US two party system is causing most of the problems in US and it being crazy to me that there's only two political parties you can realistically choose from in a huge diverse country with almost 330 million people. I'm Finnish. There's 5 political parties in current government and 4 opposition parties - and there's only 5,5 million people in this country.

Someone replied to me with this video by CCP Grey, explaining why you'll end up with two parties in first past the post voting system.

Getting rid of first past the post would be a good way to make elections more competitive, and give people more options for choosing their representatives that would have a real chance getting elected. I don't know how that would happen though - both of the current major parties are so entrenched that they're like government institutions themselves and more choices wouldn't be especially great for them.

/r/NeutralTalk Thread